Bond Rating Doesn't Move
Oh, it gets initial positive reviews and the politicians are waving paper around claiming "liquidity in our time" or some such nonsense. But the money guys and gals? They aren't budging the bond rating just yet:
- Wall Street offered an early thumbs-up Wednesday to the state Legislature’s passage of a $160 billion pension-reform package, but it’s too early to tell what impact that deal might have on Illinois’ borrowing costs.
Fitch Ratings issued a statement that called the legislative action “positive,” and the lead Illinois analyst for Moody’s Investor Services described Tuesday’s historic pension votes in Springfield as “significant.”
But none of the major bond-rating agencies signaled a willingness to ease up on the ranking they’ve assigned Illinois as the least creditworthy state in the nation.
The statements by the two rating agencies came amid signs of a rally in the market for municipal bonds from Illinois. Bloomberg reported Wednesday that those bonds traded at a one-month high.
Part of this could be the inevitable court fight looming, so the bankers will sit on the sidelines and wait for a judge to sort it out. Another part could be that the bill addresses something like $20 billion out of an estimated $180 billion in debt - a drop in the bucket.
Labels: pension
posted by SCC at 12:01 AM
17 Comments:
"...the bill addresses something like $20 billion out of an estimated $180 billion in debt - a drop in the bucket."
And what will we do five, ten or fifteen years from now when the legislature AGAIN fails to meet it's responsibilities?
SCC, there could be another reason the bond ratings haven't - and won't - budge anytime soon.
It's Rahm's buddies who are dictating those ratings and Rahm doesn't want the ratings to look better until he screws US over first.
How do you spell Detroit?
the social unrest has been calm in detroit so far, and talk is they are taking eighty percent of the pensions there. therefore this should be seen as only round one in chicago. hasn't rahm already been saying it's not enough.
when they're done with the pensions the savings accounts will be next.
sounds ridiculous i know but it's already being done in other countries so....,
and this 'america is different and that would never happen here' crowd has begun questioning that ideal.
where'd all the pension money go -- the banker bailouts to cover up the frauds.
we have a dictatorship in washington and in chicago making a mockery of the laws.
' i don't like the immigration laws so i'm just not following them -- in fact here's your drivers license'
'i don't like the gun laws -- not gonna follow that either'
'supreme court don't mean shit - i'm-ma setting up my own court called fisa '
'don't need warrants anymore so the hell to that law - we'll just go thru the motions, keep everything secrete and use fisa'
' i just passed obamacare and i'm getting shit because it's afu - so fuck congress....this part of the law over here i'll just take out and that part over there i'll just re-write and pretend it was what congress passed'
we arm al-queda in syria and then use that crisis as a tool to justify nsa privacy violations on all american's.
we have the justice dept running guns to mexico to create a crisis in the homeland to be used as a tool to demonize the right to protect oneself by owning a firearm.
hey, how much longer before the general public comes to the conclusion that if the president doesn't have to abide by the rules no one else has to.
think about all those signatures that are suppose to mean something.
signatures on contracts, on mortgages, on foreclosure documents, property titles, pensions, liar loans.... millions of them creating the biggest fraud in history...
there's signatures on our fiat currency too. the dollar bill, the five, ten, hundred dollar bill but what do they mean.
'in god we trust' is printed on the currency, does that make it special protecting it from being as meaningless as the signatures on the liar loans, pension contracts, foreclosure doc's and all the rest.
the game is rigged. hail to the dictatorship eh.
This bill only addresses a small portion of the missing money, because they fully intend to continue their theft and erasure of the pension funds in subsequent bills.
For anyone that thinks this bullshit is over, you're an idiot. If illegally upheld, this will only be the first of many acts to kill off the pensions.
Act 1 will not save them money because the intend to just spend that money on their crony friends in big business. Next year, when they point to NO savings because they gave it all away, they'll pull even more bullshit and further destroy pensions.
Pension funds a a billion dollar pot of gold, and they aim to take it all and give it away to those whom they now favor above labor in this state.
When the pension funds are gone, employee salary will be next on the menu. You will be turned into Walmart slaves, but at least you'll be earning 10 bucks an hour because that's where this state is headed, the redistribution of your pension money, and the redistribution of your annual income.
Only then will the bought and paid for government of Illinois have no choice left but to then raise taxes to feed the corporate greed machine. And since this will be years down the road, the shitheel politicians can all claim they held the line on taxes for years, and now their due for an increase.
No one sees the total destruction of our economy by these fuckers, they just believe the bullshit stories told by the government to facilitate the destruction.
Reforms are needed that curb our government's authority, reforms that put the people in charge of what happens in this state, not the shitheel fuckers stealing us all blind right now.
The bond agencies are notoriously slow with upgrades because of the threat of litigation. I also would assume that they are waiting until they see what Chicago does about " reform".
As I have stated before, I think that the Sergeant's association had the correct idea, that is, negotiate. It was one of the things that stood out in the judge's summary about Detroit. The unions absolutely refused to negotiate.
old retired guy
When you erode your tax base like Quinn's nanny state policies have done, you will never catch up.
SCC, there could be another reason the bond ratings haven't - and won't - budge anytime soon. It's Rahm's buddies who are dictating those ratings and Rahm doesn't want the ratings to look better until he screws US over first.
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You are 100% correct sir/maam! Lets keep all the "tax paying" private citizens foaming at the mouth because its unfair for all those government employees to earn a pension. We make less money now for our service to the public, in return we collect a decent size pension for about10 years before we croak at 68-70 ish.
"Even under the most optimistic forecasts, these nips and tucks would only slim the state's pension liability down to $80 billion- which is where it was after Governor Quinn signed de minimis fixes in spring 2010 to get him past that year's election..."
-12/3/13 Wall Street Journal article on "fix" to $100 billion Illinois public pension crisis
http://illinoispolicy.org/news/wsj-illinoiss-fake-pension-fix/
Anonymous said...
SCC, there could be another reason the bond ratings haven't - and won't - budge anytime soon.
It's Rahm's buddies who are dictating those ratings and Rahm doesn't want the ratings to look better until he screws US over first.
12/05/2013 12:18:00 AM
Yes. Rahm controls the multi trillion dollar bond market! Rahm is all powerful!
it appears that the bill only deals with a small part of the actual shortfall.
maybe the rest of it can come out of welfare payments.
Here's what I don't understand: we refuse to take any steps to better the financial stability of our pension. We think that, because of the failures of the city to fund our pension, it is now 100% on them to bring the pension up to standard.
They f'd our pension up. We know this, and what would be fair is to never have had this happen in the first place. However, they play the game, making us look greedy and the media and the citizens of Chicago buy it. They tell them that their property taxes will double so that our pensions can be funded. The citizen hears his and think to themselves "why should those cops and fireman get to retire at 50 with 75% of their income for the rest of their life?" They think that they are working and have no idea when they'll be able to retire and they definitely won't have the security that our pension provides us in their retirement. So they are jealous and just like us they don't want to be negatively affected. The people, for they most part will side against our pensions.
It's a major problem, no matter who's fault it is, it needs to be fixed. If we were smart we'd negotiate it ourselves, so we can have a say in what happens, not leaving it to Springfield. You want to leave our pensions in the hands totally of those who f'd it up? Good luck!
I commend the sgts association for attempting to negotiate. We should all keep an open mind before the politicians decide to put all our pension money in a personal 401k for us. Then when you retire, what you have is what you have, and when it runs out its gone, just like everyone else. We'll all work at CPD until 63 and then after that, remember this phrase: "welcome to Walmart. Can I help you?"
Anonymous Anonymous said...
Anonymous said...
SCC, there could be another reason the bond ratings haven't - and won't - budge anytime soon.
It's Rahm's buddies who are dictating those ratings and Rahm doesn't want the ratings to look better until he screws US over first.
12/05/2013 12:18:00 AM
Yes. Rahm controls the multi trillion dollar bond market! Rahm is all powerful!
12/05/2013 08:30:00 AM
Obviously, you missed the media reports on how he was influencing his pals in the bond market and working to ENGINEER the lowering of the ratings.
Yes. Rahm controls the multi trillion dollar bond market! Rahm is all powerful!
12/05/2013 08:30:00 AM
Not quite genius, he was referring to the CREDIT RATING AGENCIES WHICH CONTROL BOND INTEREST.
And yes, the government crooks control the rating agencies, or haven't you learned from the Fannie/Freddie debacle? Or do you just not have the first clue?
How do you spell Detroit?
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you spelled it right..
The options are to restructure/cut pensions now under state rules or wipe pension debt out completely under Federal bankruptcy laws.
How do you spell Detroit? I spell it Detriot. With the emphasis on riot.
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