“Chicago is circling the drain”

They promised the moon, but they couldn’t deliver the moon. Debt, dope and casinos: Chicago is circling the drain.

Chicago pensions are funded at about 26 percent of where they should be.

So Rahm proposed issuing $10 billion of debt to shore up the city’s pensions. The only government solution for debt problems today, it seems, is still more debt…

But even with that extra $10 billion, the city’s pensions will only be 50% funded.

Let me be clear… when you’ve got to take on debt for a chance of paying 50% of your pension obligations… you’re in default.

The State of Illinois isn’t far behind, and while Illinois is in the worst shape, they are not alone.

And Rahm is out the door in May… so he won’t be around when the city has to default on its debt.

What? You thought he was getting out because he wants to enjoy his golden years? Chicago is in a no-win situation, and Rahm is probably the last guy who will be able to kick the can down the road.

The current plan is to legalize (and tax) pot and bring casinos to the city. Great plan for the future Rahm.

You know, it is really easy to blame the politicians, and some of them have been in Chicago for DECADES, but that makes the assumption the unions don’t employ anybody who can do math. Chicago didn’t wake up yesterday to discover that they were on 26 percent funded on pensions. People have known this is a problem for a generation. But they refused to do anything about it.

How many other cities/states are in this situation? And are they going to want to be bailed out? Scratch that, is Congress going to bail them out? (Hat tip to Zero Hedge and Second City Cop.)

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One thought on ““Chicago is circling the drain”

  1. The nation (America) is actually in this same situation, as regards Social Security. Congress robbed the Social Security piggy bank years ago for other pork project$. I also believe many/most/all of the American auto companies failed to fully fund their pension promises but instead kicked the can down the road. Time to fail to fund Congressional pensions, and more particularly, actual payments to “retired” Congresscrooks. Many/lmost are already millionaires anyway, so do they really NEED their pensions? Asking for a friend……

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