-- Connecting the dots between our economy, government and business --
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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Illinois is the last place I want to be
I think this is just a bit of carryover from pre-Covid house hunters finishing off their plans. Supporting these prices is sellers pulling back, as well. In the coming months this will be less of a buyer’s “won’t” problem morphing into a buyer’s “can’t” problem. As the economy shrinks, the pool of able buyers will decrease demand while the pool of sellers will expand, due to distressed sales or the need to rightsize. People can only hold out so long and will need to liquidate. In addition, it is unlikely there will be any property tax relief or any substantive… Read more »
real estate prices are sticky, mortgage rates are low, eventually reality will set in years from now… people still think we’re going to have a V shaped recovery in the economy… fed is going to report tomorrow that 40%!!! of people making under 40k have lost their jobs… yeah… the Trump bucks aren’t going to last forever either…
Next the geniuses at Crain’s will tell us that city, county, and state tax revenues are up from last year, and that the pension plans are in better shape because of the pandemic
Who would expect fire sale prices this early in the Second Great Depression? Is this realtor just talking his book to discourage low ball offers? I can’t imagine anybody buying a house would be asking for 30% so early in this economic downturn…Give it a few more years…
This defies reality. There’s no way people worried about employment are going to buy a huge expensive house and pay high taxes on it that are only going higher. Nor would a seller not jump at the first offer to sell his money pit while he still can. I think you’re right, some realtor is talking his book
“There’s no way people worried about employment are going to buy a huge expensive house and pay high taxes”
Not unless you’re a government worker (this is the NW side of the city, you know) and you’re listening to Jabba and Lori’s lies that ‘no one’ will be laid off…Then the buyers are just stupid.
Where I come from, we call this ‘catching a falling knife’. You think you’re getting a good deal catching the knife on the way down, but all you’re doing is slicing off your own finger, financially speaking..
Heh. I like that analogy.