-- 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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Can you say bankruptcy? I knew you could.
Harvey is not authorized for bankruptcy. Instead, Harvey decided to default on its bonds and they have been paying bondholders only 10 cents on the dollar. Pensioners have continued to receive their payments throughout this process. It’s almost like pensions are paid before other debt obligations. Who knew?
Those pensioners aren’t sleeping too well. When they turn off the lights, they stop cutting checks. Why don’t you try to get blood from a stone. Same concept.
All the money that the city receives from the states goes to the pensions first. The lights can go out but the pension intercept law pushes pensions to the front of the line. They will be paid first.