-- 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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It seems that bankruptcy is the only way to save IL unless the IL pols restructure retirement benefits to be more aligned with the rest of the country. Of course, the latter is extremely unlikely to occur because of greed; i.e., the IL pols are more concerned with keeping their retirement benefits and getting re-elected than saving the state.
Exactly, so what will happen is a “Scorched Earth Death Spiral” policy by the Demoncrat Machine until there a forced bankruptcy. By that time, all unsecured creditors for sure get 0%, pensioners 0% maybe 15% if judges favor them over secured bondholders. If they declared Bankruptcy right now pensioners could squeeze out 65% with the right restructuring.
Poulson characterized it as a Ponzi scheme.
“The deck is stacked against taxpayers,” he said. “People now making decisions are all people who have skin in the game and want to keep the Ponzi scheme going as long as they can. They’re capturing all the benefits and taxpayers are picking up the losses.”
This is exactly right, how can the Machine prevent a politician form running that speaks out. Jeanie Ives is the only one.