-- 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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The rating agencies are supposed to be the adults In the room, but with Illinois they have proven themselves to be just the opposite. Why Illinois is not junk rated is due to either collusion, incompetence, fraudulent trade, or a miracle because our current non junk rating is certainly not based on reality. The only reason Moody’s has to prop this ponzi up further is that diminishment clause, they should not be allowed to consider that in rating, nor should they be allowed to consider that there are investors out there wanting to profit heavily off indentured Illinois taxpayers. Their… Read more »