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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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They talk about dedicated revenue streams not being subject to impairment in bankruptcy, but I thought the Puerto Rico reorganization had cast that into doubt.
That decision on Puerto Rico actually only pertains to payments during the pendency of the proceeding, which is why we haven’t written about it much.
Nice, it’s finally starting to happen, the only thing that will stop the madness. The bond holders need to suffer, they need to lose their shirts, big time, to the tune of maybe a dime on the dollar. This will finally teach the market that they can’t come in here, have their paid raters like Moodys go convince elected officials to raise taxes, then turn around and rate the very thing they manipulated and colluded with pritzker on. Illinois and Chicago need to become such toxic investments that stops the flow of borrowed money, so the only choice is to… Read more »