kick that can down the road... Bück dich
Posted on 08/04/2018 10:01:48 AM PDT by Libloather
Mayor Rahm Emanuel’s financial team is considering borrowing billions of dollars to pour into Chicago’s ailing pension funds — a move they contend could save future taxpayers hundreds of millions of dollars but experts say comes with risk.
The idea is to issue bonds at relatively low interest rates and use the money to reduce the city’s $28 billion in pension debt. The pension funds would invest the bond proceeds and ideally earn returns that outpace the interest the city would have to pay on the bond debt.
Issuing so-called pension obligation bonds would be a first for Chicago, which for years shortchanged four city worker pension funds and is now trying to catch up.
Emanuel’s close friend and confidant Michael Sacks, CEO of the GCM Grosvenor asset management firm, floated the concept Thursday at an annual conference for buyers and raters of city debt, sparking mixed reactions among investors across the nation, according to participants.
(Excerpt) Read more at chicagotribune.com ...
Bend over so that you won't see it coming.
kick that can down the road... Bück dich
Our printed, fiat monetary system, with manipulated interest rates, courtesy of the Federal Reserve, is the bedrock foundation of the progressive nanny-state, and the political life-spring for the Democrat Party.
Taxpayers being forced to borrow other people’s money mega bomb with interest.
What could possibly go wrong?
Hmm...low interest, high risk, what’s not to like?
F Emanuel and Chicago.
No monetary system works if there are crooked politicians wrecking it.
Correct. So have one instead that's out of their control
Al Capone’s lawyer took more responsibility for his misdeeds than all the Chicago politicians put together.
The politicians and the union bosses are the real mobsters.
Big Al would have kept Chicago solvent at least.
I’d make them secure the bonds with O’Hare. That’s about the only Chicago has that I’d want when they default.
1. A concerted and aggressive effort to rid the city of gangs. This might require unusual measures, including the involvement of the National Guard and/or military.
2. Substantially lowering the tax burden on businesses/corporations that could locate there. This could include a ‘tax-free’ incentive period for entrepreneurs and start ups.
3. Measures to counter the entrenched Chicago cronyism, and political corruption.
4. Make Chicago, and Illinois ‘right to work’, and counter the influence of corrupt labor unions.
5. Revitalize as much of the South Side as possible. For example, there is a large swath of lakefront property where US Steel Southworks used to be. This is prime real estate, and if developed properly could be a nidus of growth for the South Side that would grow beyond it's boundaries. This would require, of course, efforts to make these areas safer. Given that the University of Chicago is down there, it could also be targeted for biotech development and other types of tech - kind of like the Research Triangle in North Carolina. This kind of growth could be linked to increased educational initiatives and programs in the local community.
This is just a start. That said, it won't happen, because Illinois politics is corrupt and the Democrats and labor unions are entrenched.
No thanks. Price them to the risk, and I might be interested. Say 11%?
There are lots of Pauls in this world who would be gone were it not for robbed Peters
There ought to be a law against something like this . . .
Ironically, assuming anyone is stupid enough to buy a CHICAGO UNDERFUNDED DEFINED BENEFITS PENSION Bonds returning LOW INTEREST, this plan would work only as long as President Trump can control US Economic Policy (return of Rat control will crash the economy), and only if Chicago refused any PC investments, which they will certainly require.
This brilliant plan will more than double the size of the coming financial collapse of Chicago, which the citizens and investors well deserve.
A government that robs Peter to pay Paul can always depend on the support of Paul. George Bernard Shaw
Read more at: https://www.brainyquote.com/quotes/george_bernard_shaw_128084
Municipalities like Chicago have let unionized government employees put them so far in debt that there is nothing that can save them.
Borrowing billions only increases the indebtedness and postpones the collapse.
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