Should Illinois therefore Chicago. Get a federal bailout of Penion debt? Now that Puerto Rico did? (Detroit: loan, bankruptcy)

[MSchemist80]

They need to be allowed to have managed bankruptcy similar to GM and Chrysler. Pensioners are going to have to take a haircut because the money to pay the full pensions promised simply does not exist and is not extractable from the taxpayers.

[IrishIllini]

Originally Posted by MSchemist80

They need to be allowed to have managed bankruptcy similar to GM and Chrysler. Pensioners are going to have to take a haircut because the money to pay the full pensions promised simply does not exist and is not extractable from the taxpayers.

Exactly.

[NealIRC]

Originally Posted by MSchemist80

They need to be allowed to have managed bankruptcy similar to GM rsand Chrysler.

I don't know about Chrysler, but I do know for GM, they never had to fail as a company. 1 of the few times or possible the only time, the federal government has ever intervened, GM got free money from the feds so they will not die down as a company.

[PerseusVeil]

No, Illinois will not be given a bailout, nor will the federal tax code be amended to allow for it to go bankrupt. They'd be far too worried about all the other states that are struggling getting in line behind Illinois.

The only thing that could possibly happen is Chicago going bankrupt, but even that would require the Illinois' state government to allow for Chicago to go bankrupt. The current law does not.

[NealIRC]

Originally Posted by PerseusVeil

No, Illinois will not be given a bailout, nor will the federal tax code be amended to allow for it to go bankrupt. They'd be far too worried about all the other states that are struggling getting in line behind Illinois.

Someone just said that Illinois is the worst state for their debt.

If this is about the feds giving free money to the state, what the federal government could do is.

1. Give free money to the 50th state until it reaches the debt of the 49th state.
2. Give free money to the 50th and 49th state that are tied, until it reaches the debt of the 48th state, and so and so forth.

And I can't see the federal government doing this if they themselves have their own debt to deal with.

[PerseusVeil]

They're not going to do anything because it'll soon come down to splitting hairs in terms of who should and should not get a bailout, and on top of that, the Republican controlled legislature and executive branch will have no stomach for bailouts, let alone one of dark blue Illinois.

[thunderstruck666]

Try explaining to states like Alaska, North Dakota and Wyoming, all of whom have budget surpluses why their federal income tax money should be used to bail IL out.

[CSD610]

Originally Posted by UScityUrbanCores

I wonder if President Obama could push a pardon of debt for Illinois and Chicago? Maybe by some last act if not a Bill?

Illinois Pension Crisis: Ripe For Fed Rescue? | Better Government Association

Puerto Rico Bailout Will Encourage Illinois

I do not want this in the Political and Controversies forum. It is a State issue and Major city one. I actually hope for something? Just my opinion for my favorite city.

Post your comments. I chose NOT to do a poll thread.

Actually it is political and amazingly enough Chicago is not the only city in Illinois so all cities should be included.

[Antonio Montana]

Originally Posted by IrishIllini

COUNTLESS other states have the SAME issue, lol.

Yes, there are other states that have financial issues....but it's been documented that Illinois has one of the worse, if not THE WORST financial crisis in the nation. If you think Illinois's situation is not much different from other states, you're lying to yourself and/or you're being foolish. Come on, now.

[PerseusVeil]

Originally Posted by thunderstruck666

Try explaining to states like Alaska, North Dakota and Wyoming, all of whom have budget surpluses why their federal income tax money should be used to bail IL out.

Illinois puts more into the federal coffers than it gets back.
https://wallethub.com/edu/states-mos...vernment/2700/
http://www.theatlantic.com/business/...takers/361668/

Again, I do not think the federal government will touch Illinois with a ten foot poll, but don't act like the way federal tax money is distributed is fair at all times. Illinois continues to support other states, as it has done for years, at its own taxpayers expense.