-- 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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
Wasn’t it the ratings houses over valuing Mortgage Backed Securities that was one major cause of the housing crash in 2008 and 2009? So, we should believe that this is real and not just a manipulation?
All the pension funds in Illinois should have to invest at least 50% in Illinois bonds. Bonds are considered a safe investment.
Presumably it’s well recognized by most bond holders that there are various degrees of “safe” from perfectly so, likely so, maybe so, down to hope so. What’s your tolerance if you were a bond investor?
I would not put any money into Illinois bonds, not even yours or PPF money. Illinois is a bankrupt state financially and morally.
This is only possible when the rating agencies deny reality. In fact, the same people who are responsible for Illinois’ debt are responsible for the 6,000+ other Illinois governmental entities’ debt, including without limitation the City of Chicago public debt. Credit worthiness appears to be as ephemeral as the next announced financial slight-of-hand. Pritzger has reduced cash flow to other units of government, has not provided audited financial statements for two years, and continues to engage in fresh-cup-move-down financial games. This rating agency is a lapdog for the next bond release as they wink and nod and smirk, paid to… Read more »
Moodys needs to be investigated by the Feds.
As his “balanced budget “ is an accounting lie !!!
Cash accounting vs accrual accounting. Same can be said for the tariffs though. When you’re 36 trillion in debt it doesn’t matter if you took more in last month than you spent. As MsT mentions above the ratings agencies are complicit in this since they are paid for their reviews. My advisors spend all day reading the entire reports, not the summary page.
Right out of the box, Biggie has to shoot his mouth about Bad Orange Man over a questionable upgrade of IL financial status. Who lives in whose head “ rent free “ Lucky? Clown.