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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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As I always ask … timelines please … prediction time. Go.
When does the Fed say, “sorry, the window is shut?” There is zero chance they are getting paid back anytime soon. What are the strings attached to the loans? Do these loans supercede other loans? Would be interesting to know since this hasn’t ever happened at this scale before.
I have heard a 3 year payback window.
It is smart for IL to load up on as much free money as much as possible before the default. I don’t think we are heading towards a bankruptcy.. We are heading for a hard default. The rest of the country are a bunch of suckas for giving it to us.
You mean IL is just going to give it all up? What exactly is your thesis, I’m interested. Thanks.
When you say “the rest of the country”, you really mean Republican states. All democrap states are broke.
Face it, the smart ones already left IL.
The fed needs to kiss this money goodbye.
That ship has sailed — the Fed had already took over 4 trillion onto their books via QE following the 2008 crisis, and it stayed there. Illinois isn’t the only house of cards you have to worry about.
Honest question: given this is a loan where does this loan rank in terms of priority in the capital stack? Ahead of bondholders and/or pension holders? If I were them I would not be too happy about getting primed…
The only state to borrow sad so extremely sad, judgement day is forthcoming for this states politicians and pensions game over boys and girls.