-- Connecting the dots between our economy, government and business --
Comment: "Junk debt secured with sales-tax revenue. Sounds familiar," says the WSJ. Indeed. Only Wirepoints and a few lonely voices in the General Assembly were questioning the new securitized bonds from the start -- when legislative authorization was first proposed.
With $162 billion more from taxpayers, couldn’t you deliver a few bond upgrades, too
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
Everybody needs a side hustle these days, and mine is Ukraine, where I am now.
Summary and audio linked here.
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Audio and summary
“Voila, Chicago’s financial magicians spun junk into gold.” Yes, that they did. Traders are so desperate for money they can’t see the forest for the trees.
This is eerily reminiscent of the NY TImes article from 2008, “Given a shovel,Americans dig deeper into debt,” featuring the lady who keeps her phone in the refrigerator.
https://www.nytimes.com/2008/07/20/business/20debt.html
Good article. In 1989 the prime rate was 10.5% today 4.75% yet Illinois is still paying 1%/month after the first 90 days (12% thereafter/yr.) in late fees they owe to vendors or anyone else. That was the year they instituted the 3% compounding. In 1989 that was fine but the 3% was never indexed to any measure of inflation like CPI/Prime/Libor/etc. Anyone could get 4 or 5% in savings accounts or MM Funds and now are close to zero. For years interest rates now are close to zero yet 3% compounding was still being paid and 12% for late payments.… Read more »