Subscribe
Notify of
11 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
Poor Taxpayer
7 days ago

My Parents taught me it was wrong to steal.
The church says it is wrong to steal.

Cops, teachers and firemen say go for it as long as we get our cut. Stealing by not paying the bond or stealing from the next generation is still stealing.

Juicy Smollier
8 days ago

Who would buy a pension bond at this point? To call that gambling is funny, in reality it’s a stupid gamble. My wonder is if they will means test these pensions, or just get rid of the healthcare component when they finally admit they can afford barely half of the promised benefits. Like Detroit.

Poor Taxpayer
8 days ago

Something has to pay for Multi-Million dollar pensions.
Nothing but the worlds largest illegal Ponzi Scheme.

NB-Chicago
8 days ago

With 100% of risk of defalt on chump taxpayers while are are upperincome/ zero layoffs/zero risk/promised ones-public sector heros (+40% maken +$100gs or more)…what could go wrong? What moral hazard????

Governor of Alderaan
8 days ago

Why? Because Illinois is collapsing. Illinois is a failed state. Politicians are out of options and they need to kick the can past the next election. Nothing can stop Illinois’ bankruptcy, the current politicians just don’t want it to occur on their watch

Dr Nemo
8 days ago

When people want to lend you money even though they know you won’t be paying them back, why shouldn’t you go ahead and borrow the money, stiff the bondholders later, maybe in some kind of bankruptcy proceeding, and keep the burden off of your voters/taxpayers for awhile longer? Worse comes to worst, you can owe it to the bondholders when the principal comes due like you owe billions to thousands of state vendors and pension funds now. What’s a few billion more in debt? We owe the pension funds, the vendors, the current bondholders, so what’s owing a few more… Read more »

Juicy Smollier
8 days ago
Reply to  Dr Nemo

I’ve never understood the argument from a bondholder in the last 10-15 years. You get a high interest rate because of the high likelihood of default – that’s the point and the risk/benefit. Bondholders who lend to IL or Chicago SHOULD get stiffed, by definition. It’s actually why they are lending to these broke entities. They think they can survive the default date. Greater fool type thinking, and pretty reckless, as well as speculative. I hope they all go broke, because they deserve it for playing with such idiotic fire.

willowglen
6 days ago
Reply to  Juicy Smollier

Bondholders are in a desperate search for yield. They get paid for quarterly results. It will to their mind be someone’s else’s problem when the bond market shuts Illinois and Chicago down. Some bond issuers, for example, with City of Chicago bonds, have asked for and have obtained sizable liens. This will make a new start in bankruptcy difficult because such liens could well lead to an asset less proceeding, meaning that if property rights are respected (and they should be) pensioners will be hung out to dry. Worst yet, the political – union class in Illinois is so stubborn… Read more »

The Truth Hurts
6 days ago
Reply to  willowglen

Don’t forget about the pension intercept law where pension funds are allowed to intercept state funds that were being sent to the local city if that city does not make full pension contributions. Since cities would need to get state approval to file bankruptcy this essentially moves pension funds to the front of the line. Please review what has happened and is happening in Harvey Illinois. They defaulted on bondholders and never went to bankruptcy proceeding. Bondholders are currently negotiating for the pennies on the dollar while money goes directly to the pension funds from the state. The pensioners will… Read more »

Juicy Smollier
5 days ago

This is my whole point, you want the yield? You eat the loan you gave to the credit unworthy. I have no sympathy at this point for the brainless “yield slut” that gives money to broke ass cities and states, thinking it’ll turn out OK for them. They should suffer the consequences for their stupid decisions. And they DO get higher interest rates currently (or in the past) when risking, so that’s the decision they knowingly made. If I were a judge, bye bye bondholder in a New York (Chicago) minute.

Poor Taxpayer
5 days ago
Reply to  Juicy Smollier

The Illinois Pension funds should have to buy Illinois Bonds.