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Old 09-14-2018, 08:37 PM
 
426 posts, read 334,495 times
Reputation: 627

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Mayor Rahm Emanuel’s $10 billion pension bond idea deserves a brutal vetting. Here's what an honest press conference with Rahm Emanuel might look like:

http://www.wirepoints.com/chicagos-p...ght-look-like/
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Old 09-19-2018, 10:18 AM
 
426 posts, read 334,495 times
Reputation: 627
Chicago Democrats are preparing for a financial collapse of their pension funds. This POB deal isn’t about solvency, it’s about who gets paid first once the collapse occurs. Essentially the proposed Chicago pension deal will securitize $10 billion of pension debt (creating a lien which will be above GOs in the debt stack) and when Chapter 9 comes GO bondholders will be crammed down.
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Old 09-19-2018, 11:37 AM
 
629 posts, read 544,069 times
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GO's are funded with Tax dollars... Taxes will increase to pay them off and there is no Bankruptcy in the cards without a change of the State constitution... not going to happen
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Old 09-20-2018, 05:34 AM
 
426 posts, read 334,495 times
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If Rahm borrows $10 billion to speculate in equities he will be making one of the worst fiscal decisions in the history of Chicago. Then again, Rahm is leaving office so he doesn't care. It's not his money and he'll be gone before the bottom drops out. Daley screwed over this city big time and now Rahm continues the legacy.


Last edited by Manterro; 09-20-2018 at 05:53 AM..
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Old 09-20-2018, 07:51 AM
 
504 posts, read 496,717 times
Reputation: 523
It’s different - we can default on bond debt, but we can’t default on pension debt. If the pension situation is really as bad as you think, we should get any bonds we can (any interest rate), pay off the pension debt completely, and then declare bankruptcy and not pay our bond debt down.

It would screw our credit and future interest rates and whoever loaned us the money, but we wouldn’t see property taxes and other taxes go up.
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Old 09-20-2018, 04:14 PM
 
426 posts, read 334,495 times
Reputation: 627
It's called "Kick The Can" - Chicago is very good at that.

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Old 09-20-2018, 09:23 PM
 
426 posts, read 334,495 times
Reputation: 627
Speaking of city pensions, here's an oldie but goodie. This should tell you all you need to know about Chicago.

"Former Chicago labor leader nets a $158K city pension"

Former Chicago labor leader nets a $158K city pension - Chicago Tribune
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