Chicago's day of Reckoning has arrived (Detroit: unemployment rate, bankruptcy, calculation)

[18th&BlueIsland]

Originally Posted by williepotatoes

Seems like most of those who complain the loudest don't even live in Chicago. But that's kind of the norm on this forum anyway.

Ding ding ding! We have a winner.

[Bellamouse]

Originally Posted by 18th&BlueIsland

Ding ding ding! We have a winner.

So NO ONE is allowed to say anything negative, EVER? Only positive, happy posts are allowed, even if that doesn't reflect everyone's experiences and preceptions?

And for the record, I lived in Chicago for 51-3/4 years. I have only left in the last 5 months. So I am qualified to comment. More than a lot of the transplants that have only been there a few years.

And much of my family and most of my friends still live there. So it is still of interest to me to see what may become of them.

[dexter1225]

Originally Posted by compactspace

Rahm is nibbling away at it from what I can ascertain. The problem is the people with their hands in the cookie jar are powerful and connected. Political reality means they have to be prised off slowly, not hammered off. So while I'd love to see an audit of the currently-paid pensions, a slashing of the city workforce, halving the number of aldermen and so on, it can't happen quickly.

(not to detract from your well-thought comment) but why can't it be fixed quickly? Why can't it be a bandaid? Nothing stops companies in the "private" sector from cutting costs quickly.

[compactspace]

Originally Posted by dexter1225

(not to detract from your well-thought comment) but why can't it be fixed quickly? Why can't it be a bandaid? Nothing stops companies in the "private" sector from cutting costs quickly.

Sadly, I'd say it's because there's a web of favors owed and a lot of 'dirt' on people in decision-making positions. Bear in mind that managers in companies aren't elected. If they stink then they can be turfed without so much as a ripple.

But if some overpaid public servant has his tenure cut short then certain leaks could see certain heads roll. I'd personally like to see all the blood let out, the air cleared and the clean-up commenced. But those officials sure wouldn't. That's the political nightmare any reformist faces. Trying to make parasites on the system understand that they're killing their host is a delicate process.

I know this is tangentially relevant, but from what I understand NY and Cali are as bad, or even worse than Illinois. The difference is that those places are flush with enough money to cover the redundancy and wasted heat in their machinery. Hopefully, looking into the abyss will prompt the aforementioned parasites in Il to reconsider what they're doing.

[chet everett]

Originally Posted by compactspace

Sadly, I'd say it's because there's a web of favors owed and a lot of 'dirt' on people in decision-making positions. Bear in mind that managers in companies aren't elected. If they stink then they can be turfed without so much as a ripple.

But if some overpaid public servant has his tenure cut short then certain leaks could see certain heads roll. I'd personally like to see all the blood let out, the air cleared and the clean-up commenced. But those officials sure wouldn't. That's the political nightmare any reformist faces. Trying to make parasites on the system understand that they're killing their host is a delicate process.

I know this is tangentially relevant, but from what I understand NY and Cali are as bad, or even worse than Illinois. The difference is that those places are flush with enough money to cover the redundancy and wasted heat in their machinery. Hopefully, looking into the abyss will prompt the aforementioned parasites in Il to reconsider what they're doing.

Here is the map. You'll note that the NY is rated quite well, much better than neighboring New Jersey, not as highly rated as Massachusstes or Vermont, but on par with Pennsylvania and Connecticut. Its rating is trending UP.

California is not as bad as Illinois, but at least it is trending UP.

In contrast, Illinois is rated FAR BELOW ALL ITS NEIGHBORING states: Iowa, Missouri, Indiana, Wisconsin and even Kentucky ALL with better credit ratings. Only Kentucky is trend DOWN.

The inevitable result will be SPIRALING increase in borrowing costs, loss of investment and, unless the situation is addressed very soon, paying much more in taxes for much diminished services. Make no mistake, Illinois is not doing that bad for income -- people are still pay their taxes, but the SPENDING, especially on debt service itself is ORDERS OF MAGNITUDE more than can be sustained. It would be like if you gave a credit card to an imbecile and despite the fact that every statement had BOTH more charges and higher interest rates the card holder kept putting more on the card and sending in a smaller minimum payment!

[compactspace]

Originally Posted by chet everett

Here is the map. You'll note that the NY is rated quite well, much better than neighboring New Jersey, not as highly rated as Massachusstes or Vermont, but on par with Pennsylvania and Connecticut. Its rating is trending UP.

California is not as bad as Illinois, but at least it is trending UP.

In contrast, Illinois is rated FAR BELOW ALL ITS NEIGHBORING states: Iowa, Missouri, Indiana, Wisconsin and even Kentucky ALL with better credit ratings. Only Kentucky is trend DOWN.

The inevitable result will be SPIRALING increase in borrowing costs, loss of investment and, unless the situation is addressed very soon, paying much more in taxes for much diminished services. Make no mistake, Illinois is not doing that bad for income -- people are still pay their taxes, but the SPENDING, especially on debt service itself is ORDERS OF MAGNITUDE more than can be sustained. It would be like if you gave a credit card to an imbecile and despite the fact that every statement had BOTH more charges and higher interest rates the card holder kept putting more on the card and sending in a smaller minimum payment!

You're talking about credit ratings. I'm talking about corruption.

Edit: here.

[chet everett]

Originally Posted by compactspace

You're talking about credit ratings. I'm talking about corruption.

Edit: here.

I think I might trust the local reporters on this topic --

As to how local reporters saw it, Kentucky was No. 1, followed by Illinois, New Jersey and Alabama.

In my experience, local reporters are very well equipped to sniff out "when the fix is in". The impact of favoritism really does destroy a state's ability to provide a level playing field for honest people. The abject poverty of many people in Alabama and Kentucky is almost certainly a result of long standing policies that have allowed insiders to fleece the broader population.

So to have the notorious "mob ties" in places like New Jersey made it a haven for folks with connections to take advantage of every kind of government contract.

The situation is Illinois, among too many politicians, really allows them to justify the egregious kinds of abuses and they only defense is "everybody does it, I got caught". Hardly a base to build from...

[flamadiddle]

Like I was saying, get ready for Round 2! The real question is, how many rounds are in this fight?

Budget director: City property tax hike plan not enough | abc7chicago.com

The current $543 million dollar tax increase only shores up police and firefighters pension plan. Municipal workers and laborers pension plan remains billions of dollars underwater....

[flamadiddle]

And more bad news at the state level > Illinois comptroller: cash crunch will delay pension payments

"The fact is that our state simply does not have the revenue to meet its obligations," Munger told a news conference in Chicago.

[Antonio Montana]

And the progressives I talked to thought I was being a paranoid nut when I said I needed to leave Illinois because of the future financial armageddon that would come upon it. Thankfully, I didn't listen to them and got out of there when I could.