-- 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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Right Fitch, send them a stern letter, that will teach them. Watch Fitch next demand a total screwover of the taxpayers in order for the pols to “earn” a better credit rating. This is how the scam works with raters, make it look like they are so concerned, then in the back office trade the people’s homes and income as collateral to keep the ponzi going with a non junk rating.
Can’t say I disagree. These companies are gutless. Investors clearly cannot rely on their ratings.