Illinois and Chicago Muni Bond Losses Are There, Unpriced and Unbooked – RealClear Markets

"A government can write this year's check and still be insolvent by any honest measure. Rating agencies have stopped distinguishing between the two, and the municipal bond market has followed them. New Jersey, Illinois, and Chicago are now running three live versions of that gap at once, and none of it has moved a municipal bond spread the way the underlying numbers should."
7 Comments
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MsT
3 months ago

No credit issuer would allow a man with three former wives to split the alimony payments into three separate entities and have the application for more credit rated individually or sequentially as to his capacity to pay former wives #1, #2 and #3. For a corporation, no rating agency would allow a rating to be based on only profitable subsidiaries, ignoring floundering subs. Yet for governmental entities, they are willing to rate on these alternative basis. The fallacy is that each governmental agency is regarded in isolation without regard to its source of funds. Chicago taxpayers are at the epicenter… Read more »

Fed Up Taxpayer
3 months ago

New Jersey, Illinois and Chicago. The worst of the list is Illinois times two.

When you are indebting citizens and their families for generations, they deserve to know the ramifications of elected “leaders” actions in plain language. Specifically, there are a number of disclosures that must be made to any investor of the bonds – but what about the taxpaying citizens unknowingly assuming those same risks?

JL
3 months ago

Pritzker has generational wealth. He is bequeathing generational debt to present and future Illinoisians. Billionaire keeping people on the plantation.

Leaving Soon, just not soon enough
3 months ago

Those bonds should have a skull and cross bones on them.

Leaving Soon, just not soon enough
3 months ago
Reply to  Mark Glennon

Tell your readers the truth, they have to raise taxes substantially higher than they currently are to even come close to paying them off. Each Illinois taxpayer- man, woman and child is A$$ high in debt and growing every year.

David F
3 months ago

That’s a fair plain english eplaination of it.

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Glennon raised the stakes of the moment in broader civilizational terms: “This election in Illinois is not about the usual pedestrian issues… it’s about nothing less than whether Western civilization survives in our democratic republic of America because [the left], just on the open border alone, will destroy the country, and now they’re bringing in the jihadists, frankly, into the party.” Audio and summary linked here.Audio and summary linked here.

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