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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.
Thats utterly moronic. If they could get a reliable 7.5% annually, they wouldnt loan it to the city, they would invest it themselves. Jesus. Its like watching your parents fall for a get rich quick scheme.
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.
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.
Who sold them that receipe for disaster?
Bernie Maddof?
With a 2% margin, Illinois could borrow $10.15 trillion, invest it for a year, pay back the money and use the capital gains to cover all of its accumulated liability of $203 billion. Why play small ball?
Thats utterly moronic. If they could get a reliable 7.5% annually, they wouldnt loan it to the city, they would invest it themselves. Jesus. Its like watching your parents fall for a get rich quick scheme.
It's the only Playbook they have -- this "plan" has been tried several times in the past.
Yes - it is moronic and it's a proven failure.
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