-- 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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Leave it to people on a par with Gates/ Johnson when it comes to financial wizardry to invest in risky markets that when they go belly up, the chump investors have no recourse or chance of recovery. A person that fancied himself a wolf of Wall Street once tried to sell me Iraqi money futures reasoning that when the US took that country over, they would increase in value exponentially. Needless to say, he went bust and couldn’t do anything about it.
$2B investment in China seems kind of risky when the companies right here in the USA are doing just fine. The NY Post listed several “investment opportunities” made by Hunter in China. I wonder if the union sought his advice and invested in Postal Savings Bank, China Investment Corp, Founder Group, Thornton Group, Bohai Harvest and Bohai Capital, Lion Hall Group, Hudson West or World Food Program USA.
Would be a coincidence for sure.
It is worth noting that the Illinois Teachers Retirement System is different from the Chicago Teachers Pension Fund. Although both funds understand that investing in their own product, the employability of the scholars they currently produce, is a waste of money.
More proof that this country has lost its way.
Should invest in Chicago bonds, they pay above average interest rate. Wonder why they do not invest in Illinois.