-- 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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That federal liquidity loan will become the back door to federal bailout. If the Pelosi party wins in November all those “loans” will be forgiven. And the “loan” program will be extended, becoming a federal slush fund disguised as a loan for incompetent states.
Exactly. Federal bailouts will be coming in some shape or form. The loans allow for time to pass until fewer people are paying attention.
Only if you assume that D sweep the presidency, senate and house. Right now, while national poll seem to indicate that, state specific polls seem to indicate otherwise, given, in the last month, the R house wins in both CA and WI, and the R city council sweeps in Virginia quite recently. Biden is drooling on himself, the black community is really mad at Biden for his comment the day (And there’s a theory that fair number of black men did/will again secretly vote Trump because they like his F everyone attitude, which I like too!).
The treasury has already agreed to $35 billion (of the 500) of credit protection for the state and municipal loans. It’s already baked into that cake. Sure democrats sweeping the election will allow that number to grow but you can rest assured that states will be receiving federal loans that will eventually end up as bailouts. It could be this election, the next election, or the next election after that but understand that eventually this money will be forgiven. It’s just how sausage is made.
I don’t know about that. You have a really cynical view of it all. There’s such little political will now, or ever, to bail out IL. Even CA with it’s 10% budget cuts is likely looking at IL and saying, “what, we gotta bail out these folks too?” Congress is inept – my entire life I’ve been waiting for student loan reform, immigration reform, an obamacare replacement, and scores of other laws that the public wants but there is little political will to do so. No red state rep or senator is going to take that difficult vote to bail… Read more »
It’s going to be fun to see how they certify solvency.
Like always, actuaries and CPAs and lawyers are plentiful in Illinois who don’t observe their fiduciary or legal oaths. And they all know who’s signing their paycheck. They will certify a ham sandwich if asked.
… and so the death cycle continues.