-- 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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“The buy side’s hunt for yield will eclipse its worries about Chicago’s pension burden, vulnerability to a future recession, or the front-loading of refunding savings on the city’s upsized $1.47 billion of borrowing this week.” THIS says it all. How much optimism and TRUST must exist for people to buy the long-term debt of taxing bodies that have a proven track record of IDIOCY, profligacy and mismanagement? Obviously only Pollyanna shows up to buy in the bond market. Either it’s she, or Alfred E. Newman (“What, me worry?”) Someday this will matter. When that day arrives, and instead of BLIND… Read more »