-- 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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Acknowledging that Mark G. may have been a bond lawyer in his past life, I am unable to fathom how such lawyers could “opine” these financial instruments while scraping massive fees off the top. No doubt there are engagement letters and qualifications in the opinions that are designed to protect them from liability. Just like the adhesion contracts that come with new software or any and all banking and securities accounts. Mandatory arbitration of disputes adds to the hoax. Rating agencies and actuaries and CPAs are all at the party with the other guardians of the economy and the society.… Read more »
Yup. I’d be nervous if I were at some of those firms.
I recall Blago issued a massive Pension Obligation Bond that actually panned out. But if I recall correctly the IL legislature spent the savings so it ended up a failure. There’s a lesson there somewhere.