HB 0298 - Bluff or Policy?
- Short Description: MUNI CD-BANKRUPTCY PETITION
House Sponsors
Rep. Ron Sandack - Jeanne M Ives
Synopsis As Introduced
Amends the Illinois Municipal Code. In provisions concerning finance, provides that a municipality may file a petition and exercise powers pursuant to applicable federal bankruptcy law. Effective immediately.
And the chances of this making it to Rauner's desk? Both houses are run by democrats who pretty much owe their very existence to Madigan and his Illinois Combine, coincidentally, made up and funded by the very people the Bill seeks to undercut.
Sounds like a risky proposition. Certain smaller municipalities may be able to pull off a bankruptcy with limited assets and outstanding debt, but the courts might end up being rather draconian with the balance sheets.
But Rahm isn't about to open the TIF books. And Rahm has economic engines like two airports, park land, public art, exploitable assets that a federal bankruptcy judge would be accountable for.
Anyone know where the unions are on this piece of legislation? We can't seem to find any mention of it.
Sounds like a risky proposition. Certain smaller municipalities may be able to pull off a bankruptcy with limited assets and outstanding debt, but the courts might end up being rather draconian with the balance sheets.
But Rahm isn't about to open the TIF books. And Rahm has economic engines like two airports, park land, public art, exploitable assets that a federal bankruptcy judge would be accountable for.
Anyone know where the unions are on this piece of legislation? We can't seem to find any mention of it.
Labels: pension
posted by SCC at 12:05 AM
120 Comments:
I did my part (live in city- residency) and now the city can't fullfil its obligation.
Hey Fop pres Angelo.....what is your position on this?.... Will the mayor let you make a statement... You and your son and your entire group and slate will be defeated in 2017....just wait and see.....whose side are you on Mr.Angelo?
How much is spent on illegals and straight-up wastes of life??? Cut them off before you take 1 cent of the workers who actually fucking CONTRIBUTE.
anyone remember the thread a few weeks back with the mayors office, legal affairs and finance meeting with the the same law firm who handled the Detroit bankruptcy and pension overhaul. Does anyone at all now think that there is plan that is being put into effect involving Rahm and Rauner. Remember, Rauner and Rahm way back when were business partners and are to this day very, very good friends. Also, this meeting happened just after Rauner was sworn in as governer. Coincidence? No way. Rahm is planning to do something drastic with our pension. It may not be for the city declaring bankruptcy but its something to get rid of our pension system. If you think otherwise you are in denile. Writing is on the wall people. within Rauners term our pensions will be gutted, especially if Rahm is re elected which we all know is a sure thing.
Local trades unions are against it. CPS has no position yet. PBPA doesn't know about it and FOP? Well, Dean is going to have the majority of his Board to do what it takes not to obstruct Rahm Emanuel.
This is bad news, the current FOP isn't strong enough to fight the mayor and his buddy the governor. Our pension is in their crosshairs.
This might be the legislature desperately seeking a way to avoid responsibility or accountability for the coming bankruptcies. The legislature does not want to deal with it. They want to have nothing to do with bankruptcies, firing city employees, cutting pensions, or curtailing services like Police, Fire, Road Repairs. Things like that make politicians unpopular. Unpopuler politicians do not get re-elected. They nned this law to protect their careers. And they need it now! Because bankruptcy is coming to a city near you.
The Socialists are Running Out of Other People's Money.
"Effective immediately." Pass it now, before the rubes realize their cities are broke, want their money, and will get it from the taxpayers one way or another.
Union? Union? We have a Union? Anyone?
SCC, Why do you list "public art" as a revenue producing asset? Do you think the Picasso in the Daley Center Plaza could be auctioned off? Or any of the other weird ass things sitting in various public spaces? Not likely.
Anyone know where the unions are on this piece of legislation?
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General Counsel of the PBPA, Sean Smoot stated at the last PBPA convention in Decatur last October that the city of East St. Louis Illinois attempted to file for bankruptcy 3 TIMES.
HOWEVER, they were shot down by the State Supreme Court because the Illinois constitution does not allow a municipality to file for bankruptcy.
THESE BASTARDS may attempt to change the law BUT REMEMBER, the corrupt fucks have chosen NOT to properly fund pensions so that does NOT allow a bankruptcy cause to be ruled in favor of.
(As long as the judge in not on the 'take'. --- What are the chances in Illinois? )
Not to worry. Uncle Obama will bail the State and any city/town out. He will never allow Chicago to go bankrupt.
I want the tif books opened up and made public
If anyone thinks that a Federal Judge is going to "police" chicago corruption and the machine... you got another thing coming. This will go down kinda like those recent grand jury deals, "eh... No probable cause to indict"
I see we go some harvard business school grad here complaining about TIF funds... you guys dont get it...
How many of these big wig politicians graduated from law school with these federal judges? you will be surprised, City hall will get what it wants. SO stop crying about TIF funds. Check the BLue LIne for another job in the burbs, oh wait, the burbs are not paying their share of the pension either... Riverside ring a bell
BUT...the republicans will vote for it cause they are sick of all the Chicago B.S & spending. And enough democrats (types like Rahm and his minions ) will also vote for it to bail their asses out. i see it passing at some point. go read the Daily Harald article on the whole thing. Its catered for a Chicago Bankruptcy.
Can't happen for the city of Chicago ! To much money people are paying taxes the two airports bring in to much money and that the way it is ! Not the chicago way
Just another of Bruce and rahms attachment crew stirring the pot! Do you really think the elected thieves want the pension gone? How many guys have they padded the payroll/pension with? That means their friends and fellow co-conspiring future inmates would also lose their pensions along with the elected Kings and queens! Could you imagine the March to springfield and city hall to throw out all the thieves? Think the boys and girls in blue lose their pensions they do civil unrest actions and do you think the active men and women in blue will listen to elected who tell them to stop the marches?
We know George (goof) Star Wars wants his museum and of course it's a done deal as him and his Hollywood crew enrich rahms and his friends bank accounts Lucas has written this fantasy script. This is a tactic by rahm and Bruce to scare us into taking much less for our hard earned pension, attempt to make us give more maybe much more, and to break the very unions that support rahm and Bruce!
Rich bondholders, connected contractors, anyone owed a cent by the City would be in jeopardy during a bankruptcy
Therefore it is not likely unless they pass legislation that gives friends favored status. That's what I'd be on the lookout for.
Let's see and all these municipalities are run by democrats!? So instead of blaming employees, let's get to where the real problem is the politicians and hold them accountable! That would be a refreshing idea!!!
It doesn't matter. Say that to yourself "it doesn't matter". Once this law is passed, certain provisions won't matter to the city of Chicago. You mean shit like TIF money, the two airports, etc.? Our politicians know how to play games. The fact is the liabilities are mathematically impossible to pay back.
The federal government is in the same shape. Their total debt plus future liabilities (social security, medicare, medicaid, veterans pensions, etc.) is astronomically high.
Uncle Sam is even in a worse position; that 18 trillion dollars in debt plus liabilities just can't be paid back. Common sense says so. Only God knows what will happen. But you can be sure that we the little people will be screwed.
Maybe there is something to this look here Bruce wants to cut unions and wages statement here!
http://www.chicagotribune.com/news/local/politics/chi-bruce-rauner-unions-20150202-story.html
If it is disadvantageous to coppers, I am sure Dr. Dean Sr. PhD is all for it with complicit FOP board favor.
In other words, if it's f'ed up Dean says "in my experience this would be a good thing."
" He Won't Do It"? - are you positive? Worth betting your whole pension on?
Can't happen boys and girls !
Doctor Dean is ok with whatever Ram does
Anonymous said...
anyone remember the thread a few weeks back with the mayors office, legal affairs and finance meeting with the the same law firm who handled the Detroit bankruptcy and pension overhaul. Does anyone at all now think that there is plan that is being put into effect involving Rahm and Rauner. Remember, Rauner and Rahm way back when were business partners and are to this day very, very good friends. Also, this meeting happened just after Rauner was sworn in as governer. Coincidence? No way. Rahm is planning to do something drastic with our pension. It may not be for the city declaring bankruptcy but its something to get rid of our pension system. If you think otherwise you are in denile. Writing is on the wall people. within Rauners term our pensions will be gutted, especially if Rahm is re elected which we all know is a sure thing.
2/03/2015 12:28:00 AM
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De Nile is a river in Eqypt, mon. De crocs are in de Nile and you no want want to be in wit de crocs, mon.
SCC, Why do you list "public art" as a revenue producing asset? Do you think the Picasso in the Daley Center Plaza could be auctioned off? Or any of the other weird ass things sitting in various public spaces? Not likely.
VERY likely. The Detroit bankruptcy required a listing of "all public assets," which at that time included every painting in the Detroit Museum of Art, some valued at tens of millions. Art purchased by the city or "gifted to the people of Chicago" is a measurable asset. Some Japanese or Middle Eastern consortium would be more than happy to take the iconic Picasso back home for a cheap quarter-billion or so. That'd be nearly half the pension debt owned by the city.
no pension no work!
Anonymous said...
SCC, Why do you list "public art" as a revenue producing asset? Do you think the Picasso in the Daley Center Plaza could be auctioned off? Or any of the other weird ass things sitting in various public spaces? Not likely.
VERY likely. The Detroit bankruptcy required a listing of "all public assets," which at that time included every painting in the Detroit Museum of Art, some valued at tens of millions. Art purchased by the city or "gifted to the people of Chicago" is a measurable asset. Some Japanese or Middle Eastern consortium would be more than happy to take the iconic Picasso back home for a cheap quarter-billion or so. That'd be nearly half the pension debt owned by the city.
2/03/2015 07:52:00 AM
"That'd be nearly half the pension debt owned by the city."
For 2015, this year only. Sell that bitch.
Anonymous said...
Union? Union? We have a Union? Anyone?
No we don't, we have a "Fraternal Organization" we can't unionize.
Talk about the constitution, forensic audit of TIF funds and the airports - funny. Get a federal judge in your pocket, have this bill pass and hire a friendly auditing team ( for those too young to remember- Arthur Anderson and the Enron debacle), and it will get done. I cannot believe people are so naive, it is not legit folks.
Anonymous said...
>>>Hey Fop pres Angelo.....what is your position on this?.... Will the mayor let you make a statement... You and your son and your entire group and slate will be defeated in 2017....just wait and see.....whose side are you on Mr.Angelo?
2/03/2015 12:16:00 AM<<<
What has Dean, and other FOP Presidents gotten from the city for their silence. Jobs, scholarships, who knows what...
<<<Anonymous said...
SCC, Why do you list "public art" as a revenue producing asset? Do you think the Picasso in the Daley Center Plaza could be auctioned off? Or any of the other weird ass things sitting in various public spaces? Not likely.
VERY likely. The Detroit bankruptcy required a listing of "all public assets," which at that time included every painting in the Detroit Museum of Art, some valued at tens of millions. Art purchased by the city or "gifted to the people of Chicago" is a measurable asset. Some Japanese or Middle Eastern consortium would be more than happy to take the iconic Picasso back home for a cheap quarter-billion or so. That'd be nearly half the pension debt owned by the city.
2/03/2015 07:52:00 AM<<
And the Pink Iron Flamingo, the Bean, and all the other stuff on public display. Let them be bought and carted away. They were made with the skills of Chicago craftsmen and workers. We could remake all of them.
You youngsters don't know about this but it was the Democrates lead by a slime ball Northside Democrate named Dan Rostenkowski who took our social security away with the "Windfall Elimination Act" Rosty's district included numerous police, fire and other city workers that all lost Social Security even though they were entitled to it because they worked at least 10yrs in the private sector.
The Northsiders thought "Rosty" was god they reflected him time and time again like they did his father before him. A real Daley family friend and thief. Northsiders will reelect Rahm after he takes their pension that's how weak and stupid they are, believe me!
Meanwhile, the hairgels can't even tell you if they're in the traditional pension or the 2-tiered system. They don't invest in Def Comp or any other type of plan. They totally lack any kind of ability to see past today. Exactly the type of naïve employee that Rahm and Company love.
Does HB 0298 allow for the continuation of VRI?
You guys have a contract with the city. If someone makes a contract and don't deliver, you then sue. Sue and put a lien on there assets so it can't be bankrupt. Duh! D-U-H... Duh!
A financial shit-storm is coming. Read the signs. This is no bluff. The promises and guarantees for our pensions will be out the window. Contracts, contractual guarantees, constitutional guarantees, "shall not be diminished" etc, all hogwash, bullshit, out the window.
All that will matter is what the bankruptcy judge rules. That is it. If the bankruptcy judges rules that all pensions will be reduced by 40% then that is the way it will be.
"But they promised" "But it is guaranteed by the constitution!" Wipe your ass with the constitution. If they don't have the money, then what? The judge will only order money to be spent that actually exists.
And bet that the bond holders, the Wall Street finance boys will elbow their way in front of pensioners.
If a BK is filed then the BK judge becomes Emperor.
Be certain that the possible BK judges are now eing vetted.
relax...the city is not in as bad shape as Detroit was. Rahm is sitting on 3 billion in cash, plus all the assets we have if needed to be moved. Detroit was, well Detroit !!!! They had nothing to sell and 90% of city was empty, just welfare leeches left.
Illinois is bankrupt for all purposes, except for no official bankruptcy filing in court. They are not paying childcare and medical service providers right NOW. They have insufficient cash to pay current obligations.
Chicago will be in arrears as soon as the mandatory pension fund payments come due. Of course the state of illinois can pass a law to delay that payment, but it does not make the funding shortfall go away.
The politicians gave the unions the expensive pay and pensions the public sector wanted, while giving free healthcare, housing, childcare and TANF the entitled classes wanted. At the same time they filled their own pockets and those of their friends and families through patronage jobs and shady contracts. Meanwhile, the fine citizens got tax bills that were less than the total cost of all the money being pissed away.
To remedy this inconvenient problem, our politicians borrowed money. This party is coming to a close.
This is why today in the Suntimes (the Governor's newspaper), the Rauner indicated he wants to eliminate public sector employee's legal right to strike. Meanwhile, Republicans in the legislature have proposed removing the state probibition on municipal bankruptcies. The Tiny Dancer has refused to rule out property tax increases in his most recent debate, while the Governor has indicated he believes current public sector retirement plans shoukd be changed from traditional defined benefit plans to 401k style cash balance plans. Whatever could be afoot?
Moreover, in the article today, Rauner indicated state employment costs need to go down so that "critical social services" can continue to be provided. This the delicious dressing on a shit sandwich that I believe I'll call a "Mikey" Madigan special. The entitiled classes keep their affordable housing, free phone, TANF healthcare and childcare for their offspring.
Order's up! You ordered a "Mikey" with extra sauce?
Enjoy!
Attention POs. You are going
Rauner you prayed for his ascendancy to the throne, now embrace him.
Where are the unions???
Dean, for one, is too busy spooning with Rahm to fight this.
You are not getting a pension and if you are collecting, the payments are going to end.
If you are on the job with 20 years, you'd better have $500,000 in deferred comp or you will be working to age 63.
If you're a young cop, you'd better max out deferred comp and work as much VRI as you can if you hope to retire at 55.
I say bluff, but showing the taxpayers how totally incompetent our elected no skill leaders are. City has no money, but closes schools then builds more, depaul stadium taxpayers money pathetic,bike trails (and they are all snow free while we cant even drive off our blocks), maggie daley park, riverwalk, the fake chicago river fire waste of money,and on and on! rahm finds millions perhaps billions for all this waste while not paying the pension funds what is owed! tif money how much? Is it still over 2 BILLION dollars the mayors personal piggy bank? Your money,my money not his money but yet he can spend it on anything he wants except for what is owed!
Anonymous said...
Rich bondholders, connected contractors, anyone owed a cent by the City would be in jeopardy during a bankruptcy
Therefore it is not likely unless they pass legislation that gives friends favored status. That's what I'd be on the lookout for.
2/03/2015 06:24:00 AM
Again, not an option. The city cannot go about attempting to protect every other creditor besides city employees. It doesn't work that way.
If you think Emanuel and Rauner can scribble off a ton of new laws that will protect all creditors and fuck city employees and have that get past the federal courts you're mistaken.
If you think Emanuel can list all his buddies, send the names to Rauner and have him pass legislation that protects everyone but city employees go back to school.
The city cannot seek to ensure protections for all creditors other than the ones they don't want to pay. ALL creditors are required to be treated the same, that means any haircut public employees were forced to take would be forced upon all other creditors the same.
And if you care to take a moment, in Detroit as well as now in Stockton, pensioners are not the ones taking the haircuts. There are other unsecured creditors that have to take a bath long before they ever got to us.
Just because Emanuel thinks he can kill pensions and steal all the money doesn't mean he'll ever get the chance. This city and state do not revolve around what a megalomaniac wants but rather they're required to run by federal laws enacted to ensure runaway corruption such as trying to redefine who's "protected" in a bankruptcy and who's not can never play in federal court.
Emanuel has been here for an entire term. He and he alone will be held accountable for running this city into bankruptcy, not pensioners as is always their scam and lie.
We all know it was the theft of pension funds that caused this. Emanuel will never be in charge of a city that files bankruptcy for many reasons, one of which is that no bankruptcy plan will ever be allowed to proceed as Chicago is NOT broke, but rather only lying about being broke.
Relax... it's just another scam to get you all upset.
The pimp who wrote this bill is a shill for Rauner.... he's been licking Rauner's bootheels since before the last election.... he's telling his little minion boy to submit legislation at Emanuel's behest.
Even if it ever COULD get signed into law, Chicago could not stand the damage of a failed filing let alone could Emanuel.
The books prove the city has the means to pay this backlog. Every person in the know not connected to the City reports that the city HAS the means, they just don't WANT to.
That ain't gonna cut it in court kids... so relax and don't shit the bed on yourselves because you're worried about getting fucked harder in court... ain't gonna happen. Hasn't happened in Detroit, ain't gonna happen in Stockton.... ain't never gonna happen here either.
if i go to a 401k i want the residency rule lifted after 7 yrs or what ever the union and city agree to. those not vested are screwed,rahm and the gov are coming and hell's coming with them!
Police will have to strike fuck'em. I don't want to hear this shit "oh no we can't strike it's against contract and law". Who cares. Myself and many others paid into this pension for our retirement and the city spent the money on free breakfast, lunches, childcare, cell phones, housing, ipads, backpacks, food, clothing and medical care for families that have been on welfare for generations and giving the same free shit to illegal immigrants. Not to mention the politically connected that get city contracts with unlimited overrun costs. Fuck you pay me or there will be four to six man bank robbery teams of retired coppers and other city workers. I also don't want to hear this shit about saving $500,000 in deferred comp. You don't know what peoples lives have consisted over the years that most or many could never save that much or even come close to it.
And rauner just approved 18 more medicinal marijuana grow sites and 50+ more dispensaries in IL that will bear fruit in 2016. This is a scare tactic. There WILL be sweeping changes to pension but the consequences of bankrupting Chicago to settle is 1000x worse. Go ask the 1000's of private sector businesses, hotels, restaurants/bars, professional sport teams, theaters, etc... what it means to them if the city they operate in files for any sort of bankruptcy. Pull up your big boy panties and weather the storm you pussies.
The city will literally and figuratively burn if this happens. It will not be the blue flu it will be he blue plague!
Remember in Bankruptcy court, the Judge determines which creditors get paid first. The judge will decide on who is first in line. The pension funds, bondholders, and the rest that is owed money by the city.
How many $Billions are both airports worth? How about all other city owned property? TIF accounts? All of that money would become part of the bankruptcy to shore up existing pensions and pay off city debts. Remember when all was said and done Detroit's police and fire pensions were left very much in tact. Other pensions didn't fare as well but they were funded 75 to 80%. Keep in mind this all may be BS pressure for unions to make concessions for pension reform. Raccoon Eyes and Rauner didn't get to where they are in life by playing fair or nice.
Perhaps the officers complaining should not have acted as the street army of the Chicago/Cook County Dems making the promises they could not keep. For folks who talk about the public being "sheeple", you sure accepted a lot of promises from the Dems on no foundation.
All the hours you have on the books, up to a bankruptcy judge whether the city has to honor any or any portion of them. To the person who suggested putting a "Lien" on the city- you have to be kidding.
Anonymous Anonymous said...
You are not getting a pension and if you are collecting, the payments are going to end.
If you are on the job with 20 years, you'd better have $500,000 in deferred comp or you will be working to age 63.
If you're a young cop, you'd better max out deferred comp and work as much VRI as you can if you hope to retire at 55.
2/03/2015 12:38:00 PM
Rahm, get off the computer.
"..You youngsters don't know about this but it was the Democrats lead by a slime ball Northside Democrat named Dan Rostenkowski who took our social security away with the "Windfall Elimination Act" Rosty's district included numerous police, fire and other city workers that all lost Social Security even though they were entitled to it because they worked at least 10yrs in the private sector.
The Northsiders thought "Rosty" was god they reflected him time and time again like they did his father before him. A real Daley family friend and thief. Northsiders will reelect Rahm after he takes their pension that's how weak and stupid they are, believe me!
2/03/2015 09:12:00 AM"
I am not a youngster and I remember when the seniors on the Northwest side chased Dan Rostenkowski out of a public meeting and it got on the news. All that was missing was the tar and feathers. That arrogant ass was surrounded by government employees and thought he could cut the Social Security Benefits that they earned and paid for and believed that no one would blow the whistle on the dirty little game he had going with the Congressional Post Office. This SOB collected his $106K Congressional pension while in the Federal Penitentiary.
But after electing a Republican congressman for one term who did they elect after that, none other than Rod Blagovich and then Rahm Emanuel.
Barack and Hillary as Senators both co-sponsored bills that would restore the Social Security benefits that we earned and paid for. But those bills went nowhere. The bills to give benefits to illegals get pushed through even if they have to be hidden in other legislation.
Register and VOTE!
Candidate Chuy Garcia says he will open up the tif funds to shore up the pensions. Hmmmm
Anonymous said...
How much is spent on illegals and straight-up wastes of life??? Cut them off before you take 1 cent of the workers who actually fucking CONTRIBUTE.
Amen, add corrupt politicians to that list and IL. would be in a much better place financially.
No one wanted Rauner and no one wanted Quinn. But these were the choices we were given. Not my choices for governor for sure. But they were the anointed ones proving once more that democracy is a sham. An antiquated idea thought up thousands of years ago by the ancients. Why do we follow a political structure first engineered by people who believed the earth was flat and that oracles had all the answers to life? Silly.
9:12 AM F**k you and your South side bullshit. You people worshiped at the feet of those 11th Ward Politicians for how many years? You know nothing of the North side . Southsiders like you think Huck Finns on Archer is the Pump Room!
Anonymous Anonymous said...
You guys have a contract with the city. If someone makes a contract and don't deliver, you then sue. Sue and put a lien on there assets so it can't be bankrupt. Duh! D-U-H... Duh!
2/03/2015 10:02:00 AM
Right. Sue. OK.
Once the bankruptcy is filed and a judge take it then that judge rules everything financial. Lien? Get in line. You have to prove your lien is more important or legitimate than the other liens. Judge decides.
Once again, Judge decides. Everything. DUH.
Rahm Emanuel and a city for sale, pass it on and prepare to fight back. This has been on the agenda since Daley's administration and Rahm is here to complete the task. Will you tolerate it?
"A financial shit-storm is coming. Read the signs. This is no bluff. The promises and guarantees for our pensions will be out the window. Contracts, contractual guarantees, constitutional guarantees, "shall not be diminished" etc, all hogwash, bullshit, out the window.
All that will matter is what the bankruptcy judge rules. That is it. If the bankruptcy judges rules that all pensions will be reduced by 40% then that is the way it will be.
"But they promised" "But it is guaranteed by the constitution!" Wipe your ass with the constitution. If they don't have the money, then what? The judge will only order money to be spent that actually exists.
And bet that the bond holders, the Wall Street finance boys will elbow their way in front of pensioners.
If a BK is filed then the BK judge becomes Emperor.
Be certain that the possible BK judges are now eing vetted.
2/03/2015 10:47:00 AM"
Bingo! We have a winner!
You really think when the $hit hits the fan the Constitution will mean anything?? If they are broke they are broke. These goofballs in Springfield are not going to keep raising property taxes to pay for our pensions if they don't have to.
The politicians in this country have made many promises to people that are going to be broken.
to 2/03/15 12;38pm you sir are 100% correct n i bet you are intelligent and a working po too. i too have 20 years, and have maxed out in deferred comp , used the tuition reimbursement program(masters) and i now work all the vri i can, my opinion, if under 10 yeas no pension (410k). 20 years and over, your benefits are frozen and you can also contribute to a 401k with rahm kicking in a little too. or they do what they did portland or. pd 25 years and only 45% with no cola. ps i have no clout n live on the n/w side,
go to Illinois house of representatives enter either
reps name the bill will appear next to their name. then click on full text. It exists
Dear Mr. Ray Casiano, Vice President of the Chicago FOP:
Heard you finally showed your true colors today at the board meeting. Taking extra pay is breaking your biggest campaign promise sir. I'm disappointed in you. The $650 you take a month extra is pure greed, but lying to the membership to get elected is despicable.
Sell Maggie Daley Park to the Chinese or South Korean's they make everything we buy they gotta have money.
This snow will be the reason Rham fails to be reelected! Mark my words! I have spoken!
All that will matter is what the bankruptcy judge rules. That is it. If the bankruptcy judges rules that all pensions will be reduced by 40% then that is the way it will be.
&&&&&&&&
Dude, you need to get out of your mom's basement and wise the fuck up.
Since you seem to think you know it all on this subject, how about taking time out from telling yourself how right you are and take a few minutes to actually read what's happened in the two biggest attempts to shed pensions in court?
That's right.... go see what actually happened to Detroit retirees.... go take look at what's happening now in Stockton.
Then come back here and tell the rest of us how smart you are again. Because Chicago HAS a far greater economic engine than Detroit has had since the last 30 years.
And as for Stockton? Go take a look at what happens when you threaten to blow off pissant little pensioners in favor of paying off big money first.
This bullshit will never come to pass in Chicago, but the bullshit sure has the stupid in a panic doesn't it?
For those ignorant enough to believe that the little shitheel runt can simply file a bankruptcy and tell the court his plan is to fuck off the entire pension system alone, and make sure everyone else is made whole is something even a corrupt federal judge in Chicago has the authority to pass off, you really need to get a fucking clue and some semblance of an education on the subject before doing the shitheel's "panic boy" work for him.
Some of you truly are the tools this shithead Emanuel thinks you are.
By all means, keep doing his fucking work for him, he'll never have to lift half a finger to get you rubes to give it all up to his cronies.
Keep working V.R.I. boys and girls.
This way Rahm doesn't have to hire more PENSION PAYING COPPERS.
What do you care as long as you're making that overtime?
It can't hurt you.
Can it?
You don't have to wait for City Hall to F--k You.
You're F--king Yourself.
Wake Up!
Anonymous said...
no pension no work!
2/03/2015 07:59:00 AM
And THAT is what this city would be faced with in the event these scumbags attempted to kill off pensions in this city.
For some reason these asswipes all seem to think that they can pull whatever shit they want on public employees and they'll just suck it like a good little doggie.
What was found in other cities and what has recently transpired in New York regarding police officers telling the mayor to go fuck himself, in the highly unlikely event they have the balls to kill their own political futures and the city's financial future just to try and shed a constitutional debt they have the ability to pay but just don't feel like because it takes away the graft and corruption money, what this city will experience in police and fire work stoppage will be unheard of in this city's history.
Not only will the police & fire still left here become extreme minimalists in terms of work output for the residents of this city, buy any newly hired and still employable new kid will LEAVE this city and throw this city under the bus at the slightest hint of a public fucking to keep the rich rolling in taxpayer dough.
If someone thinks what happened in New York hurt the mayor and the city, just wait until public employees in this city and state shut this fucker down.
We will not be used as shitrags for the rich to wipe their ass on with OUR fucking compensation for work performed now and in the future.
Emanuel may think he can siphon away half the city's taxes into private slush funds and claim he's broke, but we all know far better and will leave this city in droves.
If Emanuel wants a city crippled with no public employees and those left refusing to perform their job tasks, let him make the first move into the end of his political career. I can't wait.
Then this city can have what it wants..... GED dropouts with drug addictions and criminal histories working as their police and paramedics.
Oh yeah.... that's what they want. Let them have it. Then when they come begging for middle class people to come back to work we can tell them all to go fuck themselves since they just had to try and fuck us all first.
I was at fop today and saw this capperelli treasurer yelling at coppers who need the help of fop. I couldnt believe my eyes that only a hand full of them board members had the copper's backs. Pathetic that this is where our dues go. Assholes.
Anyone OTJ with 15 yrs or less will see a monthly pension check of 600 dollars OR LESS. guaranteed boys n girls. Do the fucking math.
OT ,any explanation by local 2 on why they are endorsing Rahm.Local 2 president's wife works in office for 41 ward alderman O'Connor, whom was backed by rahm and has yet to vote against any taxes or fees raised by rahm ,follow the money and favors , remember they are coming for your pensions also ,heroes
They'll scare the public with it so that Springfield gives Rahm pension relief.
A bankruptcy of the fund itself is likely though.
A guy at the retirement seminar in October asked Regina Tuczak when it was scheduled to go BK, she replied that 2020 is the magic year if nothing is done.
She also stated that it could go BK sooner if the economy takes a dump.
The deal the Sgts. negotiated is going to look pretty good when this shit hits.
The running joke at the medical section is "let me give you a hand!"
Why is that funny? Well, it isn't. But it's the new scam with the rats jumping the ship. See, you can't be the police of you can't shoot if your shooting hand is hurt- wink wink. You would be fucking shocked how many coppers are going for disability with a bad shooting hand. Guess what, that's your pension they're all drinking from when they get it- and boy, they're all getting it.
pOs that are 5 yrs on job and less- sad
if the money is not there????
Pres. Angelo doesn't have time to help any of you. He's busy hanging out at Brando's Speakeasy at 2:00 in the afternoon and than getting into his truck with NO CITY STICKER.
The sky is falling. The sky is falling
Run run run
Christ-this state and city have plenty of money. Wtf. They take in billions and spend billions. Only issue is they (political leaders) spend it on what they want. They need to be removed from office. But their spending on what they want includes their voting bloc needs.....not on what we want.
DECEPTION AND SUBTERFUGE.
According to the IL Gen Assembly, Madigan introduced over 800 (yes, eight hundred) bills for review by the Rules Commitee on 3 Feb 15 in addition to some submitted by a few other Reps.
Which bills that RC will get to first is a matter of who gets to be the next Chicago mayor.
Maybe there is an "eminent domain" brewing in some valued suburban properties eyed by venture capitalists looking to cash in with the expert land acquisitionists of TUR'd Investments.
...and thanks to the poster that reminded readers of the The Windfall Elimination Provision (WEP. That bill flopped under Democrat control in the White House. Who is going to resurrect it...Obama/Clinton-Rahm? Ha!
– DUMP RAHM - Vote for Anyone Else
The FOP site let me know about the gift shop closed Monday and the pre ACT testing. Nothing about this bill, so I'm assuming it isn't that important. I using my scissors to stab my neck repeatedly. We are doomed, and of course no one admits to voting these guys in. Please Saint Cooter save us.
I am retiring very soon, the first thing, I am gonna do is transfer my deferred comp money into a Roth Ira,bc what I have been told the pension board is hand picked by the mayor and to me that means the city can help themselves to the money and misspend it and then claim bankruptcy , I don't want end up with no pension and deferred comp...taking no chances..
Anonymous said...
You guys have a contract with the city. If someone makes a contract and don't deliver, you then sue. Sue and put a lien on there assets so it can't be bankrupt. Duh! D-U-H... Duh!
2/03/2015 10:02:00 AM
We could sue ... if the FOP wasn't in bed with Rahm.
It's called Labor Racketeering.
Where's the soup line?
You are not getting a pension and if you are collecting, the payments are going to end.
If you are on the job with 20 years, you'd better have $500,000 in deferred comp or you will be working to age 63.
If you're a young cop, you'd better max out deferred comp and work as much VRI as you can if you hope to retire at 55
Bull Shit
OT:
USS Illinois submarine set to be christened this year
Illinois is about to be introduced to a nuclear-powered submarine named for the state.
The USS Illinois, still under construction on the East Coast, is a $2.7 billion black behemoth set to prowl the seas after its christening, expected June 27.
Navy Cmdr. Jess Porter, the submarine's captain, is bringing some of his crew to Chicago for two days of public appearances that begin Thursday with a breakfast and presentation at the Union League Club of Chicago.
The submarine is the first Navy ship named for the state since the battleship Illinois was commissioned in 1901. Years later that vessel, since scrapped, was reclassified and renamed Prairie State, freeing up the name "Illinois" for another use.
---
The state may have a lousy credit rating but it has been a long time since there has been a USS Illinois in the Navy fleet.
Keep electing democrats no wait, isn't rauner a republican? Rahms not a true democrat, he's a socialist, and a lawyer, he hates everybody who stands up to him and will destroy them. The Revolution is getting closer.
Just received a letter stating I owe a Crook County use tax of 1% on my vehicle. Anyone ever hear of this? This is in addition to all other taxes. Squeeze the middle class and I have to live here for work.
You are not getting a pension and if you are collecting, the payments are going to end.
If you are on the job with 20 years, you'd better have $500,000 in deferred comp or you will be working to age 63.
If you're a young cop, you'd better max out deferred comp and work as much VRI as you can if you hope to retire at 55.
2/03/2015 12:38:00 PM
Lmfao......yeah ok buddy. You type pretty good after a whole bottle of Black Label
More than 30 Chicago area social service agencies discovered an unwelcome surprise in their email inboxes late last Thursday afternoon.
A letter from the Illinois Department of Human Services tersely informed them to “cease any and all operations” funded by state grants they were awarded in the closing weeks of Gov. Pat Quinn’s administration.
The contract awards, which were announced Dec. 17 and took effect Jan. 1, were intended to provide job training, after school and other “youth development” programs.
Some $8 million total was involved, a drop in the bucket compared with the $1.5 billion budget deficit that Gov. Bruce Rauner says he inherited from Quinn upon his Jan. 12 inauguration.
Yeah fuck theses punks got do some belt tightening get this state back on track fund them pensions. Big Bruce getting it done, He's a visionary I tell ya...
If for some reason the city does go bankrupt, can they file and drain are deferrd comp????
We will lose all accumulated compensatory time earned!!
How many $Billions are both airports worth? How about all other city owned property? TIF accounts? All of that money would become part of the bankruptcy to shore up existing pensions and pay off city debts. Remember when all was said and done Detroit's police and fire pensions were left very much in tact. Other pensions didn't fare as well but they were funded 75 to 80%. Keep in mind this all may be BS pressure for unions to make concessions for pension reform. Raccoon Eyes and Rauner didn't get to where they are in life by playing fair or nice.
***************
news flash. Selling off money making assets such as the skyway, parking meters, parking garages, airports etc makes you even more broke. People think hey we can privatize midway for a billion dollars. In city government, a billion dollars does not last long. once that money is gone, all the money you were making from takes and sales is gone. So, now youve gotta fill that hole somehow... Ok, lets privatize the other airport.. great, now you get another windfall of money but before long its gone and now even less tax money is coming in. Now you sell of more and more just to pay the bills until there is nothing left to sell that is worth selling and staying afloat. Now you raise property taxes so high that people flee the city by the 100s of thousands per year. businesses leave by the hundreds each year. neighborhoods get abandoned and tourisim crawls at a snails pace.. then, you are left with nothing. you are left with half the population with is mostly ghetto where property taxes are low anyways. then you have no choice.. tif money, pension money everything is gone so you have no choice except going bankrupt... What I just described to you is exactly what happened step by step in detroit. after the auto industry started to pull out they started selling and privatizing everything... thats how they went broke. We shot ourselves in the foot with the skyway and parking meters. half a dozen city parking garages have been privatized in the past 8 years and im sure more will follow. the rest of the country is pulling out of the recession.. not chicago and not illinois. there is a huge reason for that. our pensions will be gone. not bankruptcy, but it will be gone. 401k type program will happen. we will get what we payed into our pension with a small cherry on top.. very small cherry. smaller municipalities are doing this, getting challenged in court and winning... mostly in california and utah so far but dont think that the city and state are not aware that cities are winning these court battles and getting rid of the pension systems effectivly. only way to survive is to get grandfathered in which those court cases demanded that if you retired before the case was settled you are fine. If you retire the day after the case is settled then you get paid out in the retirement system, not the pension. crappy but its happening.
Anonymous said...
Just received a letter stating I owe a Crook County use tax of 1% on my vehicle. Anyone ever hear of this? This is in addition to all other taxes. Squeeze the middle class and I have to live here for work.
2/03/2015 10:31:00 PM
My guess is you bought the car outside of Cook County. In Illinois you pay taxes based on where you live, not where you buy a car. If you bought it in Kane County, you still pay taxes as if you bought it in your home zipcode.
Anonymous said...
The running joke at the medical section is "let me give you a hand!"
Why is that funny? Well, it isn't. But it's the new scam with the rats jumping the ship. See, you can't be the police of you can't shoot if your shooting hand is hurt- wink wink. You would be fucking shocked how many coppers are going for disability with a bad shooting hand. Guess what, that's your pension they're all drinking from when they get it- and boy, they're all getting it.
pOs that are 5 yrs on job and less- sad
~~~~~~~~~~~~~~~~~~~~~~~~~~
Coppers with 5 yrs on the job getting Disability pension would only get one year of that 75%
Before you post, learn how much an officer is entitled to with each year of full duty service.
Anonymous said...
You guys have a contract with the city. If someone makes a contract and don't deliver, you then sue. Sue and put a lien on there assets so it can't be bankrupt. Duh! D-U-H... Duh!
2/03/2015 10:02:00 AM
We could sue ... if the FOP wasn't in bed with Rahm.
It's called Labor Racketeering.
2/03/2015 08:19:00 PM
If the City goes BK you can wipe your ass with the contract. You go yo court and fight for the crumbs along with every other entity owed money by the City.
I hope Richy Daley's pension is OK.
One thing, all the multi million dollar judgements against the city that they are paying out over many years, they can get out from under those too.
Your two STATE Trooper brothers must want to kill you Ron.
no! 401k's do not belong to the city!
Anonymous Anonymous said...
Just received a letter stating I owe a Crook County use tax of 1% on my vehicle. Anyone ever hear of this? This is in addition to all other taxes. Squeeze the middle class and I have to live here for work.
2/03/2015 10:31:00 PM
Never heard of that? Is this another of Toni periwinkle "secret backdrop taxes?"
"...You know nothing of the north side..."
I know everything about the north side. In fact, I could be Mr. NorthSide. Most of the men are just like me.
Now, kees me you fool!!!!
Detroit police and fire did not experience any diminishment of their pensions after Detroit's bankruptcy. Police and fire are a separate issue.
There are tough decisions that have to be made.
Option 1
Unions refuse pension reductions. The city raises property taxes 150% to pay for all the pension debt and city spending with no reductions, Taxes are 15-20k on a home in Beverly. North Shore taxes with Chicago crime rates and CPS schools. People that can leave fall over themselves to get out of Chicago. Housing prices crash, more people leave, tax revenue falls.
Outlook for Chicago: Detroit Style Death Spiral
GAME OVER
Option 2
Unions refuse pension reductions. Chicago cuts operating budget and reduces city services and policing to the bone. The entire city, including the loop, near north become crime ridden and extremely dangerous. People that can leave fall over themselves to get out. Former neighborhoods filled with city workers decline as a large numbers are laid-off. Housing prices crash, more people leave, tax revenue falls.
Outlook for Chicago: Detroit Style Death Spiral
GAME OVER
Option 3
Unions refuse pension reductions. Chicago defaults on a major bond payment and files for bankruptcy. An emergency manager is appointed by the Governor. Unlike Michigan, Illinois is essentially bankrupt and cannot offer extra money to Chicago to ease the hit on pensions. Pensions are reduced by 30%, pension COLA eliminated. Creditors and bondholders lose 80 % of their money. The bankruptcy judge declares all labor contracts with unions null and void. Wage reductions of 20-30% are imposed on all employees. The judge and the city manager try to decide how much services can be reduced without making the city unliveable. Many of the clouted lose power and influence as the hiring is now done by the emergency manager, and bidding is required for contracts. Forensic accounting reveals many instances of fraud and corruption. These cases drag on for years. Many go to jail. O'hare and Midway sold.
Outlook to Chicago: uncertain.
Option 4
A deal is cut. Union collective bargaining rights are curtailed by the passing of new laws. Wages, pensions and services are curtailed through negotiations and unilaterally as well. Property taxes are raised by 30%. The current political class remains, and continues as a parasite on the system, albeit on a diet.
Outlook for Chicago: uncertain
I believe this outcome is the most likely because the crooks that run the State, City, County and Unions stay in power. Wild cards include the fact that Illinois, Cook County and Chicago Public Schools will be experiencing the same type of meltdown at the same time. Additionally, as taxes to pay for CPS are a major part of property taxes, how much they increase will impact whether or not the city remains viable. Look for the crooks to try to foist that on the State and other suckers outside Crook County. This will take on the mantle of "education funding reform or equalization of revenue amongst districts. " We will see how it shakes out.
The bottom line is that the crooks will do what they can to stay in power.. This means government workers will get paid less and citizens will pay more taxes and get fewer services. The entitled classes will get their housing, TANF, medical, childcare in exchange for vote and not burning down their neighborhoods.
A "Mikey" special, extra sauce, hot off the grill!
The events of the Detroit and Stockton CA bankruptcy are a must if you want to see how these things work.
"If the City goes BK you can wipe your ass with the contract."
Why would the city go Burger King? This is a White Castle town, padre.
Keep things in perspective. The city has or should I say had money just not pension money. Ask yourself why is it that pensions, social security, medicade programs that workers pay into are all going broke but entitlements like welfare, medicare, unemployment are not?
Democrates are Socialists they want wealth redistribution for the workers not the "thinkers" or politicians.
Anonymous said...
I am retiring very soon, the first thing, I am gonna do is transfer my deferred comp money into a Roth Ira,bc what I have been told the pension board is hand picked by the mayor and to me that means the city can help themselves to the money and misspend it and then claim bankruptcy , I don't want end up with no pension and deferred comp...taking no chances..
2/03/2015 08:14:00 PM
Be careful about converting the deferred comp into a Roth IRA. If you qualify you have to make less than $100,000 the last year of work(might be hard if wife working or you get payout for CU,BFD's,PD's, etc) and when you convert to the Roth IRA you will have to pay taxes on the converted money. The CPD employees,most at in the 25% bracket and 5% state tax so you will have to pay 30% of your deferred in taxes. Takes a long time to make that up. Think about it say you had $300,000 in deferred, when you convest you will have a $90,000 tax bill. Not giving advise,just pointing out a situation with your converting idea
Anonymous said...
Detroit police and fire did not experience any diminishment of their pensions after Detroit's bankruptcy. Police and fire are a separate issue.
2/04/2015 08:08:00 AM
I hope the lawyers bring that up in court. I am sure it will influence the bankruptcy judge in this case.
"Well, if they did it that way in Detroit, I guess we should do it that way here too!"
Anonymous said...
~~~~~~~~~~~~~~~~~~~~~~~~~~
Coppers with 5 yrs on the job getting Disability pension would only get one year of that 75%
Before you post, learn how much an officer is entitled to with each year of full duty service.
2/04/2015 01:19:00 AM
Get your facts straight. Regular disability is one year for every 4 years of work, that is non-duty related disability. Accident, cancer, off duty injury.
On duty disability, off probation, is 75% until regular retirement age, 63. And while on duty disability, all raises and step raises continue to acrue so when age 63 comes around you retire with full pension at the top salary.
While on disability of any kind, you are still subject to the Rules and Regulations of the Police Department. You can get CR #'s, you can get fired, if you get convicted of a felony on disability you might lose the pension entirely. That has happened and affirmed by the Illinois Supreme Court. A Sgt. got convicted of a sex crime and lost his disabiity and all pension credits. IL Supreme Court decision. Last I heard, he was driving a cab in Las Vegas. Behave yourself on disability is the message.
Just received a letter stating I owe a Crook County use tax of 1% on my vehicle. Anyone ever hear of this? This is in addition to all other taxes. Squeeze the middle class and I have to live here for work.
If you purchase a vehicle outside of Cook County and register it inside of Cook County you pay 1%
For the person who stated police and fire retirees did not lose anything- please do a little research before you post.
1. Lost health insurance
2. Lost the Cola
3. Lost 4.5% off their retirement checks.
Anonymous said...
"If the City goes BK you can wipe your ass with the contract."
Why would the city go Burger King? This is a White Castle town, padre.
2/04/2015 08:46:00 AM
Ahhhh, how right you are. That makes me feel like running over to Addison and Kedzie right now. 5 sliders with that dark mustard, onion rings and a large diet coke. Followe by a tastee-freeze and then a nice big smelly dump before I get home. I'll stop at old A3. Don't want to smell up my place.
Anonymous said...
Just received a letter stating I owe a Crook County use tax of 1% on my vehicle. Anyone ever hear of this? This is in addition to all other taxes. Squeeze the middle class and I have to live here for work.
If you purchase a vehicle outside of Cook County and register it inside of Cook County you pay 1%
2/04/2015 10:26:00 AM
Next time get a Post Office Box outside Cook County and register it there. Also for privacy and safety sake register all bills, subscriptions and everything you can to the P.O. Box.
Anonymous Anonymous said...
Anonymous Anonymous said...
Just received a letter stating I owe a Crook County use tax of 1% on my vehicle. Anyone ever hear of this? This is in addition to all other taxes. Squeeze the middle class and I have to live here for work.
2/03/2015 10:31:00 PM
Never heard of that? Is this another of Toni periwinkle "secret backdrop taxes?"
2/04/2015 06:59:00 AM
*************
Yes. whenever you buy a used car in Cook County, you will receive a bill directly from the county for it. It is the only car related tax that dealers and/or private sellers are forbidden to collect. Went through it a couple of times myself.
Anonymous said...
For the person who stated police and fire retirees did not lose anything- please do a little research before you post.
1. Lost health insurance
2. Lost the Cola
3. Lost 4.5% off their retirement checks.
2/04/2015 11:19:00 AM
true, and with the king and his court jester rauner he will try his best to avoid funding the pension,and Bruce said today "We will not raise property taxes for at least 2 years" ok bruce did you and rahm go on the treasure hunting safari and find that hidden tif "pot of gold"! Inspector Clouseau great job Bruce your going to do as you promised "First responders pensions will not be diminished" a man of his word thank Bruce!
Take my money... Hm I start takin things back.
s flash. Selling off money making assets such as the skyway, parking meters, parking garages, airports etc makes you even more broke. People think hey we can privatize midway for a billion dollars. In city government, a billion dollars does not last long. once that money is gone, all the money you were making from takes and sales is gone. So, now youve gotta fill that hole somehow.
NEWS FLASH, how are u more broke if u file for bankruptcy.that word alone means ur as broke as can be.WHEN U FILE u have to show all assets, open all ur books. U can t hide money in another account and say u have no money( like TIF).So i would call their bluff and have them show how much the books have been cooked the last 20 years. Im sure DALEY will be shitting in his pants if the feds get involved.
Anonymous said...
"If the City goes BK you can wipe your ass with the contract."
Why would the city go Burger King? This is a White Castle town, padre.
2/04/2015 08:46:00 AM
**************************
I'm a Krystals gal myself. But, I'll do WC when in a pinch.
Talk like this, of cheating out of what we rightfully earned reminds me of why we have a Second Amendment.
If you're a young cop, you'd better max out deferred comp and work as much VRI as you can if you hope to retire at 55.
55? HA! By the time they have that much time on, 55 and out will be a thing of the past and the mandatory retirement age will have moved up to 67.
s flash. Selling off money making assets such as the skyway, parking meters, parking garages, airports etc makes you even more broke. People think hey we can privatize midway for a billion dollars. In city government, a billion dollars does not last long. once that money is gone, all the money you were making from takes and sales is gone. So, now youve gotta fill that hole somehow.
NEWS FLASH, how are u more broke if u file for bankruptcy.that word alone means ur as broke as can be.WHEN U FILE u have to show all assets, open all ur books. U can t hide money in another account and say u have no money( like TIF).So i would call their bluff and have them show how much the books have been cooked the last 20 years. Im sure DALEY will be shitting in his pants if the feds get involved.
City is not broke. Are constantly building new projects. Presidential library? Also watched channel 11 yesterday, the candidates were talking about a Lucas project down near the lakefront. Would product 20,000 temporary construction jobs and 500 permanent jobs. You can't do that is you don't have money. Also you can always raise property taxes,can't just say I dont want to raise them because it would hurt me politically.
Detroit was different,completely,they had no tax base, half city was vacant buildings and people couldn't pay their current property taxes,let alone increases. Chicago is different. Compare Chicago's downtown to Detroits.
There are lots of financial terms you will need to understand as this process goes forward. Broke is a colloquialism that is not too useful when talking about these matters.
In Arrears. When you don't pay your bills on time. Illinois is doing this right now.
In Default. When you don't make a payment or meet a required condition you are obligated to do to in a legal contract, such as a monthly payment, an interest payment to a bondholders, or a payment to a pension fund.
This is an interesting concept because sometimes, contracts ask you to pay more money, interest or all the money back at once if you default or if your credit rating goes down. Chicago has some contracts like this that could blow up and cause a financial crises. Rahm and the creditors would probably try to negotiate something on the side to hide and/or defer these kinds of things. If you have an ornery Union that demands a pension payment, or a creditor that won't renegotiate, defaults can get out of hand quickly. A good example of this was when Lehman Brothers and AIG were defaulting at the beginning of the financial crises, all the bankers and the fed hid out and made deals to stem the defaults from spreading.
Insolvent. When all your assets, such as an airport, and future income from taxes and fees for the city is inadequate to pay for all your debts and financial obligations. For example, right now, it is probably true that without an extremely large increase in taxes, neither Chicago, Illinois or Cook County could pay the debt on bonds, the pension obligations and continue to to run government operations like police, fire and streets and San.
Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.
When Chicago stops paying its bills, it will be in arrears. If it misses payments to bondholders, it will be in default. It will probably enter bankruptcy proceedings, and will likely be found to be insolvent. Then the judge will determine what assets the city has and what it owes. Chicago will likely be found to be insolvent. There will not be enough money to pay what everybody is owed.
Because Illinois, Cook County, Chicago and CPS are all linked, keep an eye out. One domino could cause all the others to fall. Once the scramble for the money starts, nobody will want to be on the outside for fear of losing out. Everybody shows up and starts filing in court: it will be pensioners vs. pension plans vs school boards vs local governments vs bondholders vs bond insurers vs citizens etc..
The Judge, Chicago and the creditors of the city will propose a bankruptcy settlement to determine how much less everybody will get than what they are owed. Some types of debt and creditors get treated better than others in bankruptcy.
The Judge will make the final decision as to who gets how much. Usually all collective bargaining agreements get tossed out the window in bankruptcy.
Hope this helps you understand how the "Mikey Special" would work out in bankruptcy..
I'd rather have Rostenkowski, Than Mike "There's Nothing I can Do About Low-Income Housing In Your Area" Flanagan.......
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