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Old 03-03-2015, 07:01 AM
 
Location: Chicago
4,745 posts, read 5,572,673 times
Reputation: 6009

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Quote:
Originally Posted by probablyimnotsure View Post
Pretty sure California is considered the most poorly run state in the country, but Illinois is up there at like number 2 or 3.
As another poster already pointed out, Chicago and Illinois have the worst credit rating in the country. Also, California is still growing at a decent pace, unlike Illinois. Cities like Los Angeles and San Francisco are adding way more jobs than Chicago.

Chicago has pitiful growth, non-existent job creation and the worst credit in the country. It is what it is.
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Old 03-03-2015, 09:03 AM
 
7,846 posts, read 6,404,740 times
Reputation: 4025
Quote:
Originally Posted by probablyimnotsure View Post
Pretty sure California is considered the most poorly run state in the country, but Illinois is up there at like number 2 or 3.
California has a "positive" budget outlook.

Quote:
Originally Posted by jonnynonos View Post
Illinois has the lowest bond rating of any state and Chicago the lowest bond rating of any major city.

Yet about half the citizens want to vote for a candidate whose only idea regarding finances has been to spend more.
....didn't Rahm close over 50 schools? Is that what you guys want?

Quote:
Originally Posted by jonnynonos View Post
Isn't the state in even worse shape?
No, and it doesn't matter. States can't go bankrupt. You think the Federal Government will allow a state to go bankrupt? LOL!
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Old 03-03-2015, 09:57 AM
 
2,990 posts, read 5,279,404 times
Reputation: 2367
Quote:
Originally Posted by Opin_Yunated View Post
California has a "positive" budget outlook.



....didn't Rahm close over 50 schools? Is that what you guys want?



No, and it doesn't matter. States can't go bankrupt. You think the Federal Government will allow a state to go bankrupt? LOL!
If you are mad at school closings, close your eyes and imagine what a federal takeover of the state budget looks like.

Do I like school closings?

Well, since the city has lost a million residents since peak population, I imagine it is a fairly natural outcome.
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Old 03-03-2015, 09:58 AM
 
2,990 posts, read 5,279,404 times
Reputation: 2367
Quote:
Originally Posted by Opin_Yunated View Post
California has a "positive" budget outlook.



....didn't Rahm close over 50 schools? Is that what you guys want?



No, and it doesn't matter. States can't go bankrupt. You think the Federal Government will allow a state to go bankrupt? LOL!
CA may have a positive budget outlook for the year. It's long term finances remain horrific. This is a bit like saying you make 30k a year and owe $150k in credit card debt and patting yourself on the back for paying all your minimums and having a dollar left over.
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Old 03-03-2015, 10:03 AM
 
7,846 posts, read 6,404,740 times
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Quote:
Originally Posted by jonnynonos View Post
If you are mad at school closings, close your eyes and imagine what a federal takeover of the state budget looks like.
It's not a takeover.. it's called a bailout.

Quote:
Originally Posted by jonnynonos View Post
Do I like school closings?

Well, since the city has lost a million residents since peak population, I imagine it is a fairly natural outcome.
School closings in black neighborhoods are natural? Hardly. Closing schools = successful prisons. This isn't exclusive to Chicago. Rust Belt cities all have disgruntled white men profiting off running the school boards into the ground.

Quote:
Originally Posted by jonnynonos View Post
CA may have a positive budget outlook for the year. It's long term finances remain horrific. This is a bit like saying you make 30k a year and owe $150k in credit card debt and patting yourself on the back for paying all your minimums and having a dollar left over.
The issue is the pension obligations. The states bit off way more than they can chew. The Fed will probably have to bailout multiple states in the next 50 years.
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Old 03-03-2015, 10:51 AM
 
2,990 posts, read 5,279,404 times
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Quote:
Originally Posted by Opin_Yunated View Post
It's not a takeover.. it's called a bailout.



School closings in black neighborhoods are natural? Hardly. Closing schools = successful prisons. This isn't exclusive to Chicago. Rust Belt cities all have disgruntled white men profiting off running the school boards into the ground.



The issue is the pension obligations. The states bit off way more than they can chew. The Fed will probably have to bailout multiple states in the next 50 years.
I love how your solution to financial irresponsibility is to go running to the Feds for a $100 bn check.

You should learn something about municipal finance. It's not that easy. Aside from creating an untenable precedent, you still have to convince people to buy your bonds.

When you are a deadbeat, that means you are going to end up paying either exorbitant interest or simply unable to sell them.
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Old 03-03-2015, 10:58 AM
 
7,846 posts, read 6,404,740 times
Reputation: 4025
Quote:
Originally Posted by jonnynonos View Post
I love how your solution to financial irresponsibility is to go running to the Feds for a $100 bn check.
There is no other solution. If Chicago is insolvent, it has to go to Illinois for help. If Illinois is insolvent, it has to go to the Fed for help. The Fed cannot be insolvent... as the Federal Government is monetarily sovereign. Chicago may not be able to pay its bills at some point. It can't just cease to exist.

Quote:
Originally Posted by jonnynonos View Post
You should learn something about municipal finance. It's not that easy. Aside from creating an untenable precedent, you still have to convince people to buy your bonds.

When you are a deadbeat, that means you are going to end up paying either exorbitant interest or simply unable to sell them.
Municipal finance is irrelevant. I'm talking about the bigger picture. Chicago can go bankrupt, but it's not going to close up shop or anything. It's going to just get a bailout.
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Old 03-03-2015, 11:08 AM
 
2,990 posts, read 5,279,404 times
Reputation: 2367
Quote:
Originally Posted by Opin_Yunated View Post
There is no other solution. If Chicago is insolvent, it has to go to Illinois for help. If Illinois is insolvent, it has to go to the Fed for help. The Fed cannot be insolvent... as the Federal Government is monetarily sovereign. Chicago may not be able to pay its bills at some point. It can't just cease to exist.



Municipal finance is irrelevant. I'm talking about the bigger picture. Chicago can go bankrupt, but it's not going to close up shop or anything. It's going to just get a bailout.
Did Detroit get a bailout?

No it went bankrupt. That means the pensions take a hit, public projects are brought to a standstill and bondholders get crushed.

So far the latter isn't a problem but as cities get more comfortable doing it investors are going to stop buying their bonds and then cities will have no way to finance anything: no-thing.
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Old 03-03-2015, 12:18 PM
 
Location: Pittsburgh (via Chicago, via Pittsburgh)
3,887 posts, read 5,521,355 times
Reputation: 3107
It's a strange situation. All this doom and gloom yet downtown population is growing, 18 high rises are being built, and you hear news all the time of suburban companies relocating to the city and other out of state companies expanding or moving here. On another website I supposedly can't name, the Chicago Economics thread has a new story daily about some company moving here or expanding. Interesting.
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Old 03-03-2015, 12:25 PM
 
7,846 posts, read 6,404,740 times
Reputation: 4025
Quote:
Originally Posted by jonnynonos View Post
Did Detroit get a bailout?

No it went bankrupt. That means the pensions take a hit, public projects are brought to a standstill and bondholders get crushed.

So far the latter isn't a problem but as cities get more comfortable doing it investors are going to stop buying their bonds and then cities will have no way to finance anything: no-thing.
Detroit and Chicago are nothing alike. Chicago is a global power city.

I'm just saying.. these things aren't something the average guy needs to worry about. Besides, no one WANTS to see Chicago go down.
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