-- 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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They should invest all the pension money in this deal. That way they can turbocharge their gains on investment. Or turbocharge their losses on investment. I would bet this one is a loser.
The theory seems to be that pensions of retired workers have a higher claim on revenues than any other municipal obligations payable out of revenues: salaries, utilities, cop-cars, elevator repairs, you-name-it. “The law is an ass, an idiot…” if that theory holds up. This is how the Dems do government shutdown.
I agree that it’s a no-brainer for Chicago to issue POBs if that means the decision is made by someone without a brain.
Of course, the no-brainer is to restructure the pension and health care benefits retiree packages way downward, thereby giving the taxpayers relief and reversing the trend of declining population in Chicago and IL.
yes-correct, all mayoral candidates should be asked if they would approve pob bailout. but think the average voters are such idiots they would put up zero opposition even if there homes were put up as collateral.
Then all mayoral candidates should be asked if they know what “POB” stands for.
yup, sure most of the mayoral candidates have no clue about pobs not to mention Collateralization–sure they are all bombarded by ctba (unions)propaganda-and thats where they get there talking points. 100% sure the aldermanic candidates have no clue–today all the city/empolyee machine guys were out knocking on doors on my block in 39th ward, which prompted me to go and read all the aldermanic candidates position on their web sites. astoundingly non of them even mention debt, pensions or pobs. just ton of promises for more free stuff. my neighbors have no clue–there main concern is crime. I could see… Read more »
Moody’s is right in there too on this typical scam, Moody is a loyal partner in crime. The fact that these pols will borrow us into oblivion is a given. But Moody’s is the great enabler that lets them. When will they finally give these bonds a proper junk rating to slow down this train?
disagree, bond holders got burned big time in Puerto Rico , Detroit and elsewhere. think moodys, finch and the rest are going to be extremely conservative in assessing chicago pobs. and many recommend rates and levels of collateralization that could kill the deal for chicago machine.
Is this also intended to cover the massive increase in funding that kicks in starting in 2022?