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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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Here is a novel idea coming from New York…hint to Pritzker
“NYC to withhold $900 million in teacher back pay amid fiscal crisis”
https://www.nydailynews.com/new-york/education/ny-uft-teacher-backpay-20201009-7eduhkps2vcvtnyki57rihwysu-story.html
I am trying to find a few solutions without reworking the Illinois Constitution for the time being because with the present legislature on every level it will not happen. What could be addressed are. #1 Index the 1% per month after 90 days the state pays in late payments to some measure of inflation. When this was implemented decades ago the prime rate was 15% in 1980 so 1% late payments was reasonable then but now 3.25% yet the state is still paying 9% year 1 thereafter 1% per month. Lot of interest on $8B in late payments. #2 Pension… Read more »
Illinois Bankruptcy now. Toss the Public Sector leeches and The Illinois Democrat politicians into the garbage where they belong.
Bailout coming soon. The house plan of 2.2 trillion and Trump’s at 1.8 are getting close. The stock market is already baking in the approval. Either way I have faith that the state of Illinois can take another fed loan while also raising taxes and getting a bailout. More loans and then loan forgiveness when the right people are in office.
Trafalgar Group poll shows Trump winning 275 Electoral votes, Senate remaining in Team R’s control and and the House remaining under Team D’s control.
Who is Trafalgar Group?
The only polling house to correctly predict the 2016 Trump upset.
Instead of pinning hopes on ‘the right people being in office’, IL should get their own financial house in order. Don’t penalize other, prudent states for this financial malfeasance.
I hope you’re right about Trump winning but I don’t see it happening. They are not pinning all of their hopes on a bailout, that’s why they are trying to pass the “fair tax”. Although I don’t think that will pass. Not to worry though as Illinois politicians have a solid playbook. Continue begging for a bailout. If you can’t get a federal bailout another federal loan will do. Some day their friends will be in office and those loans will be forgiven. Bailout by another name. Pass the “fair tax”. If it doesn’t pass then pass a flax tax… Read more »
You are truly a Schill.
God help the future financial well being of this great country.
No. He’s right. Until Illinois bankruptcy happens this will be the playbook of the IL Democrats. After all, the state of Illinois exists for the politicians and their public sector union masters. Everyone else can go pound sand.
Illinois bankruptcy is inevitable. Ratings agencies have already said that the state is in the beginnings of a financial death spiral. So the question is when, not if; I suspect that the Wuhan Virus will speed up this inevitable financial collapse.
In the meantime until bankruptcy, IL Democrats will screw over everyone who isn’t in a public sector union.
My point being IL, the 22nd largest GDP, is posing a systemic risk to the overall strength of the dollar. When Greece, #79 in GDP, imploded it caused the EUR to drop from $1.87 to $1.12 on the FX markets. IL political/financial hooliganism threatening to impact the dollar in a similar fashion, to those who are actually live within their means, is ridiculous. Being all for states rights, but the people of IL, I correct myself, the people of Cook County, get the government they deserve. Ratings agencies should just officially mark it as junk now, and precipitate the implosion,… Read more »
“When Greece, #79 in GDP, imploded it caused the EUR to drop from $1.87 to $1.12 on the FX markets”
So you are saying that Illinois is too big to fail? Careful, it sounds like you are making a case for a federal bailout.
Nip it in the bud now before it becomes a cancer to the body of the US. Let IL dig it’s way out of the hole it made for itself. No financial aid from the US Treasury or Federal Reserve for Illinois until the existing Illinois Constitution is struck down. Simple enough for you?
Illinois wont be alone in financial failure. Once any one of the deeply ailing states (CA, CT, NJ, IL) or other tottering political units (Chicago, Cook County) fails then the bond market will freeze up for all of them. Investors will finally realize that they are likely to lose money and anything less than 60% interest rates isn’t worth the risk. It will be a massive nationwide failure of poorly run states and cities (mostly Blue states but not entirely) and will effect the overall US economy. The good news is that collectively all of the failed states and cities… Read more »
Nope. Just a realist. Do you really believe Illinois leaders are not capable of any one of the tax items I posted above? Are you mad that I provided you with a scenario where Illinois is headed in terms of taxes? Who exactly am I schilling for? Who benefits by me posting this information? Certainly not the pro “fair tax” crowd. It’s just my opinion so no need to worry or get upset. Then again maybe you know that I’m right. Go ahead and down vote, maybe that will make you feel better. Open that wallet Locke. The beast is… Read more »
My confusion stems from the statement ‘Bailout coming soon, ‘ almost a ‘rah rah’ to the crack whore that is IL continuing on with its usual games. Can never tell which side you’re on, almost wanting to refer to you as ‘Mr. Madigan’.
Another bailout is coming soon. Sure just my opinion but the price tag seperation between Trump and Nancy is getting too small to deny. Yes Mitch isn’t fully on board but with Dem support he won’t need to do any heavy lifting.
The crack whore doesn’t quit crack because they are out of money, she just turns another trick for more crack. Illinois isn’t done turning tricks just yet.
It seems we hold the same opinion, just unfortunately express it differently.
Apologies for the misunderstanding.
I consider myself a sound money proponent. Bailouts are antithetical to sound money.
I believe the President is trolling the media and eating Speaker Pelosi’s lunch on further stimulus. President Trump is a very successful businessman. Please read “The Art of the Deal”. He trumped Pelosi a few weeks back with his Executive Orders to help American people whilst Congress continued to fiddle as Rome burns. Talk about being out of touch. A shambles, all of them. If you look at the facts, can one see a stimulus bill getting through the Senate now before Election day? The nomination and appointment of ACB is and remains the number one priority of the Speaker,… Read more »