Chicago pension proposal: Borrowing 10 billion at 5.5% interest rate and investing it for higher returns (compared, economy)
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The stupidity of Chicago politicians is endless. Wrack up more debt on the hope that they get a return greater than their interest payments? Sounds like a 12 year old with a credit card.
- ...Also we can invent a time machine, go back to 2013 and bet with all of our money that Donald Trump will be POTUS after Obama.
-Dear Minister of Finance, do you have some more suggestions on how to improve our economy?
With as much corruption as there is in Chicago, only an idiot would lend it that much money. The pensions will still be a mess and the politicians will be buying themselves yachts and houses in Aspen.
The stupidity of Chicago politicians is endless. Wrack up more debt on the hope that they get a return greater than their interest payments? Sounds like a 12 year old with a credit card.
How old does one have to be to believe that we can simply continue to run up trillion dollar deficits?
yes this is truly a bad idea. and while it might actually work, it would have ro be done by someone who actually knows how to invest the money, and get the returns required to both pay off the loan, and support the pension program in question. unfortunately politicians dont have the expertise to do things like this. they would end up just going further into debt, and actually defaulting on the loan and really screwing things up.
This has blown up into a mess so many times I can not believe anyone still suggests it. The idea is for it to blow up after the currently elected officials are gone.
Yeah, they're quite the special and clever leaders of such a great city, politics aside. It is a shame because Chicago truly is a great world class city. They just need to get their poop together.
Wonder if it will work out and it will be a miracle for Chicago. The plan is to borrow 10 billion at 5.5% interest rate and expect it to grow at 7.5% annually.
I guess that the compounded 7.5% returns will cause unfunded pension liabilities to plummet and all will be well.
Dude, that is a future disaster in the making. Chicago is going to go bankrupt in its future, that's what's going to happen.
"Rich" people do this all the time - invest on margin. It's a risk. I don't know what the timetable might be, but this market is seriously over-bought and it and the larger economy are going down whether the bulls want to admit it or not. Maybe if they buy the dip.
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