[Libloather]

“The market has hated pension bonds for a while here now,” said Ciccarone, president and CEO of Merritt Research Services, noting defaults in Detroit, Puerto Rico and three California municipalities. “Many people got burned on them.”

Bend over so that you won't see it coming.

[Chode]

kick that can down the road... Bück dich

[PGR88]

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.

[Billthedrill]

Hmm...low interest, high risk, what’s not to like?

[Bonemaker]

F Emanuel and Chicago.

[Paulie]

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.

[Leaning Right]

Chicago's plan: Get people to buy risky, low-rated bonds that will pay little. Then invest that money in safer investments that will pay more. Well, sure. That's about as good as the gnome's plan from South Park.

[ameribbean expat]

I’d make them secure the bonds with O’Hare. That’s about the only Chicago has that I’d want when they default.

[Governor Dinwiddie]

Borrowing more money to pay off debt? Isn't that what they used to call a "Ponzi scheme"?
 

[neverevergiveup]

Chicago is a beautiful city that could grow its way out of this, but not under this kind of Democrat ‘leadership’. There are multiple steps that need to be taken, including:

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.

[PAR35]

relatively low interest rates

No thanks. Price them to the risk, and I might be interested. Say 11%?

[bert]

There are lots of Pauls in this world who would be gone were it not for robbed Peters

[Behind the Blue Wall]

There ought to be a law against something like this . . .

[Navy Patriot]

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.

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.

[Vlad The Inhaler]

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.

[Presbyterian Reporter]

“””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”””

---

Let’s see now. The SMART people who ran the Chicago government into a $28 billion pension debt are now saying the taxpayers should believe they have the SMARTNESS to invest a multi-billion bond issue in stocks and other investments.

The taxpayers who have any sense left should be packing up and getting out of Chicago ASAP.

[NRx]

Setting aside the obvious attempt by the city to dodge its financial obligations, this is madness. Anyone with more than two functional brain cells understands that you never borrow money to gamble. You would think that people would have gotten that lesson down hard after 1929.

[SkyDancer]

Like taking out a loan from one credit card company to pay off another one then the cycle continues.

[Capt. Tom]

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.

Maybe I should take advantage of all the offers to borrow money that I get, and shrewdly invest it, and get more back than I would have to pay back, and be ahead of the game?
Why didn't I think of that until reading this? - Tom

[CIB-173RDABN]

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

---

He is kicking the can down the road hoping he will be long gone before the bill comes due

[ptsal]

Perhaps the SEIU, Teamsters, and Teachers retirement funds should invest in this deal.

A bonus investor might also include CalPERS.
/mega-sarc