Chicago Has Credit Rating Cut 3 Steps by Fitch on Pension


#1

bloomberg.com/news/2013-11-09/chicago-has-credit-rating-cut-3-steps-by-fitch-on-pension.html

This is shocking. If you consistently make promises you don’t keep, eventually people won’t believe you. In this case it was about funding pensions for a bloated public sector.

Someone should have told President Obama about this consequence of repeatedly lying to the public before he left Chicago for Washington.

Chicago’s unfunded pension liabilities are almost ten times as much as bankrupt Detroit. The mayor’s plan is to raise cigarette taxes, which will be less than a pinprick for the problem.

I am so glad I left Illinois 29 years ago, although I feel really sorry for family and friends still stuck in a place where politicians not keeping their promises while concentrating on destroying the family get re-elected without serious opposition.


#2

This is not shocking. For quite a few years they’ve been debating this and unable to come up with a fix. Well, maybe higher interest rates on new Illinois bonds will help them fix it.


#3

It’s not shocking. The pensions should have been funded as the years passed. Too many cities underfunded, putting the money elsewhere.

npr.org/2013/10/03/228448660/while-others-underfunded-pensions-milwaukee-held-firm

So, this is not a “whoops, where did that money go?” situation.

Peace,
Ed


#4

The only thing that really shocks me is that the politicians thought they could get away with this for so long. Another Illinois politician said, “You can’t fool all of the people all of the time.”

The 75 cent per pack tax hike will be great for Indiana. Nicotine addicts will travel here to save $7.50 per carton, and have lower sales tax for their smokes and anything else they buy. They can fill up their tanks at lower prices and maybe even notice that real estate taxes are much lower, and buy houses here.

Entrepreneurs from both sides of the border will be selling tobacco on the streets with Indiana tax stamps until either the police or organized crime moves in on them.

The last thing Chicago politicians will do is to relinquish their hold on the public employees who make up their own powerbase.


#5

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