-- 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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Please– gimme a break! Any dope sitting on cash made money the last seven months. Money market funds and short term treasuries are a no brainer. Short term interest rates are the highest in the last ten years, and with a slight drop in rates, the principal value of the bonds held goes up also. Our fearless Treasurer and his simpleton strategy had absolutely nothing to do with this income generated
Correct- You can get 5.3% in a short term CD like at Discover Bank FDIC insured and a little lower in longer terms. All the cash on hand the pensions funds have should be invested in short and long term CD’s since Powell may lower rate 3 or 4 times next year depending on inflation data.