-- 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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My Exit strategy in 5 years…. Today switch to an interest only mortgage. Invest the monthly principal to myself instead of my Illinois home which is likely to decline in value. In other words begin “buying” my next home with my redirected principal payment to savings. At 5 years use the principal I would have put to this home as down payment elsewhere, combine that with whatever equity I have. Homes in Illinois don’t deserve principal pay down, the state is confiscating your home value, you need to stop the bleeding for the time you must stay.