-- 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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This article is spot on about everything except one thing. The headline. The past pattern has shown that investors do flock to Illinois for the yields and collude with politicians to raise taxes or get a place at the front of the line in bankruptcy. Investors (vultures) like to eat the carcass of this dying state, it’s very profitable for them and not risky at all for them, when the likes of corrupt actuaries, Moodys, Madigan, and Pritzker are their trusty market fixers, they will have nothing to fear. The Ponzi will easily go more cycles.