-- 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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No word yet on what SVB and Signature’s ESG scores are.
Based on my reading of an opinion piece in today’s WSJ, SVB likely had a good ESG rating: “In its proxy statement, SVB notes that besides 91% of their board being independent and 45% women, they also have “1 Black,” “1 LGBTQ+” and “2 Veterans.”
Perhaps they should have considered experience in lieu of DIE. <– not the normal presentation, but darned close to being prescient.
Just say’n.
BUT, it’s comforting to know this bail-out won’t cost U.S. taxpayers a penny. Riiight!
Thank you, Joe Biden.
Pensions should be held to the same standards. NOTHING BUT A PONZI SCHEME.
Looks like the depositors will be able to get all of their money starting tomorrow. And some of you think the feds won’t bail out state pensions if needed. Adorable.
Danielle DiMartino Booth
@DiMartinoBooth
BREAKING SVB depositors “will have access to all of their money starting Monday, March 13,” @USTreasury said Sunday in a joint statement with @FDICgov and
@federalreserve “No losses associated with the resolution of SVB will be borne by the taxpayer.”
https://twitter.com/DiMartinoBooth/status/1635046727618277376?cxt=HHwWgMDR7b-V7bAtAAAA
SVB bank was highly leveraged in unfederally insured lending to unprofitable tech startups the same as $trillions$ in ‘private market’ funds are now invested in. The scarry part being that are public sec heros pensions are increasingly invested in ‘private markets’ as well. This is what Ted Siedle warns about. It looks like the feds are going to particularly bail out the uninsured loans….all on the taxpayers dime. Im sure it’s way more complicated than that, but that’s my limited understanding of big picture
I listened to a bunch of YouTube on SVB bank collapse and my comment makes no sense..SVB going under has more to do with 14 years of QE zero interest rates then fed fighting inflation by raising interest rates QT…tons of YouTube on this
I think you got it right, but be more than careful about YouTube. It’s among the most notoriously biased, rigged platforms the left controls.
One thing: SVB Chicago did much to help build Chicago’s tech community in its early days. I should write about that.
It can happen anywhere if people forget that liquidity matters. Buying illiquid investments in an effort to chase the highest return is a recipe for disaster if the market changes and cash is needed.
Let’s see what happens when the CMBS (commercial mortgage backed securities) defaults begin in earnest….