Authored by Mike Shedlock via MishTalk,

Warren Buffett would not locate a business in Illinois. His reason? Unfunded liabilities.

On CNBC Squawk Box, Warren Buffett put a spotlight on Illinois' problems.

Betty Quick: There's a question that came in from a viewer: "How do you see the unfunded pension liabilities across the United States affecting our economy over the next ten years?"

Warren Buffett: Well, if you're talking about the corporate sector-- the unfunded liabilities have been working their way down because all the new companies don't go for defined benefit plans. In the public sector, you know, it's a disaster.

If I were relocating into some state that had a huge unfunded pension plan I'm walking into liabilities. 'Cause I mean, who knows whether they're gonna get it from the corporate income tax or my employees-- you know, with personal income taxes or what. But that-- that liability isn't gonna-- you can't ship it offshore or anything like that. And those are big numbers, really big numbers.

And when you see what they would have to do-- I say to myself, "Why do I wanna build a plant there that has to sit there for 30 or 40 years?" 'Cause I'll be here for the life of the pension-- plan-- and they will come after corporations, they'll come after individuals. They-- just-- they're gonna have to raise a lotta money.

Betty Quick: I mean, when you say that the states that come to mind, having not looked at those statistics in a while, would be Illinois and New Jersey at the top of the list.

Warren Buffett: Well, as I say I praise by name and-- criticize by category.