Two More Steps to "Junk" Status
- Chicago’s plummeting bond rating took center stage in the race for mayor Friday after a Wall Street rating agency dropped it another notch — to two levels above junk status — citing Chicago’s $20 billion pension crisis.
The decision by Moody’s Investors Service to drop Chicago’s rating for a fifth time under Mayor Rahm Emanuel — from Baa1 to Baa2 — may cost the City of Chicago tens of millions of dollars.
As a result of the downgrade, the city is on the hook to pony up $58 million under agreements covering existing debt, according to Laurence Msall, president of the Civic Federation. While city officials can try to renegotiate those agreements, a City Hall spokeswoman had no immediate comment on the matter Friday night.
But hey, $100 million for DePaul, $400 million for a fantasy train station, tens of millions for a park, and lord knows what else. All while a few billion sits in TIF funds, skimmed away from the general fund and $500 million in red light and speed fines get tossed around like so much confetti.
Labels: money questions
posted by SCC at 12:07 AM
46 Comments:
Intrest rates are low. Only way to make money and increase intrest rates by having bad credit. Somone is getting rich off the city.
scc, You left out the over hundred million for the Bloomingdale Trail 311 Bicycle Lane Park 606. Or whatever the hell they're calling it today.
No problem. Just raise a few taxes a little bit here and there.
Chuy is really beginning to sound like the one to vote for as more stories like this come out. . . . .
He couldn't do worse, but we know Rahm could do a lot worse
Time to release the TIF's. It's Rahm's Monopoly money that actually comes from our taxes.
So my inside person, who happens to be related to me but has a different last name, says the rating agencies HATE Tiny Dancer. But, they think Chuy might win, which scares them more. Would it be wrong to repeat they hate Rahm and add that they think he's a condescending prick.? Hope not
Don't forget the windfall from the taxing of all internet purchases...who knows where that will go.
Rahm picked the pockets of police when he took away their overtime retro and tuition reimbursement and then Rahm taxed them to pay for these projects.
Most - and I mean MOST - people collecting a check from the city are too worried about getting MORE money and benefits for what they do, than worried about how the check is going to clear.
TOO many pigs at the trough and they don't care if the well has run dry.
I don't hear anyone talking about any givebacks or pay reductions. "Hey, that's someone else's problem - I deserve MORE."
Teachers? They always want more money. Cops, firemen, city workers - ALL underpaid from their standpoint.
Well, guess what? You AREN'T underpaid and it may come down to taking a haircut either in pay or pension - or both.
Is it fair? You can argue that all day at your favorite watering holes. Bottom line is - it's reality.
Decisions made in the past - TIF Money, Projects, Crony "Deals", all have channeled money away with varying degrees of "good" payback - as well as bad.
Some deals were BAD - not arguing that at all.
Now the well has run dry and people are wondering, "HEY, where is more water in the trough for ME?" There AIN'T any.
If the city has to declare bankruptcy - and DON'T count that out as a possibility - ALL bets are off.
You won't be the first to take major pay cuts to save your jobs.
OR, you might lose your job and find out you aren't worth $90,000+ on today's job market.
AND THE REAL JOB MARKET IN CHICAGO AND ILLINOIS?? It AIN'T 5.5% unemployment.
Cancel the Canonization of Richard M. Daley for the way he ran this City into the dumps with his spending of our money on all kids of things we didn't need and holding out money in TIFs.
I thought the Democrats wrote the recipe for Junk Bonds....
"Just TAX & SPEND" -The Democrat Way!
The city's plan for bankruptcy. Guess all those retired guys better start looking for work too. No money for pensions.
https://ca.news.yahoo.com/exclusive-chicago-rating-downgrade-could-end-swaps-deals-174532024--finance.html
true and rahm is telling us what a great job he is doing! You would think that obama saying Chicago is his hometown would be sure to let the federal money pour in! Rahm wants to use tax money to build obama a library,and of course that star wars museum will be over budget and we will kick in for that atrocity!
Lets see maggie daley park criminal way over budget!
Bike lanes waste of money huge waste, screws up traffic!
River walk? Billion ++
Walking trails down railroad tracks waste unless you want to jump out and be a possible victim!
How can rahm even run? But then again he violates even the simple laws like red lights!
Don't worry though we are giving trillions out to illegals, but nothing for first responders pensions! Rahm must go, daley did bad rahm worse!
The city is broke, no one wants to face it. Top heavy in all areas because of patronage. Just the way it is.
Hey, a Billion here, a Billion there, pretty soon you're talking BIG money!
There's no stopping it now.
The Daley-Emanuel Democratic death spiral continues.
All caused by the Chicago's media darling, Richard M. Daley.
This story was hardly touched on by most of the news.
Go CHUY!!
"But hey, $100 million for DePaul, $400 million for a fantasy train station, tens of millions for a park, and lord knows what else. All while a few billion sits in TIF funds, skimmed away from the general fund and $500 million in red light and speed fines get tossed around like so much confetti."
--
Has everybody forgotten about the $250 million Rahm pledged to build a new Malcolm X College. When questioned Rahm bleated out "I'm not going to be the one to tell those kids they can't get an education." Typical Rahm double-talk phony bullshit. But it is still $250 million pledged for another unneeded multimillion dollar project that is simply more pandering for votes.
I think they are doing that for rahm. Creating another crisis that only a gifted hero Like our emperor could handle. Did the other bond raters do the same? He's got to go!
And they will use this to get out of paying into the pension. And what will we do. Nothing!!! Piss and moan about it that's all. God forbid we lose our car our start time
Prelude to bankruptcy. Constitution, courts, contracts will then not matter.
It's a game strictly to avoid paying the pension costs and change the pension laws. But all you will hear is the city and state are broke. Yeah sure.
Governor hires 6 figure salary consultants and city has more than enough money to plow politicians streets and build arenas and parks.
It's all about money, power, and buying votes to stay in office.
New Governor wants to change things. Everyone else elected saying no. Money and power.
Rahmeconomics. Like giving millions to a ghetto rat lottery winner.
Vote for RhamBOoooooooo
Not from Chicago
Raises Taxes and Fees
Hates the Po Po
Time to Vote Rahma into permanent retirment
Don't forget TIF's earn interest!
But nobody knows the rate of return on the funds.
And those banks holding the funds donate millions to RAHM.
The FEDs are useless.
Anonymous said...
Prelude to bankruptcy. Constitution, courts, contracts will then not matter.
2/28/2015 10:57:00 AM
Yes, you are probably right. I love to read the comments about hidden money and city conspiracies. The city is on the way to bankruptcy ( must be approved by the state according to law). Independent accounting firms have all said that it is impossible for the city to raise the needed case to avoid insolvency. And, that means the end to all union contracts, reworking of pensions ( a substantial cut). I am retired and in my 70s and I don't relish going back to work to make ends meet. The state ( democrats and republicans) are looking at changing the state income tax to a sliding scale and taxing pensions and social security. It is coming and no amount of crying is going to stop it. Illinois is the worst state in the union for funding and debt and the CPD pension fund is the worst funded in the country. I blame Daley for this.
With Garcia as Mayor????????. Shades of Dennis Kucinich??????????.
Tomorrows suntimes again about police on disability stories with the idiot who killed the buck years ago on the cover again! Guess rahm is feeding the media whores anything to not pay the pension and make us look bad!
For those retirees who live out of state: Does anyone know where to send donations to Chuy Garcia's campaign?
I know we have many investment people out there, question many myself included are in nationwide Deferred Compensation plan, and i am in the Chicago blended fixed option, if the city goes bankrupt like rahm is pushing it to do, will I and others lose our money?
After Daley spent feverishly and increased debt, sold off assets and busted the city finances, he bailed out, impending corruption investigation hushed, Rahm was installed to keep a lid on things. Not as easy as he thought after the conviction of Comptroller Amir Ahmad.
Rahm is adding to the pyramid scheme by continuing to manipulate the books, spend-spend-spend and bury as much as he can. His pal, Gov Rauner and his staff of take-over accountants intend to manage this city with more false growth.
Nothing to see here right Rahm, right Chicago? Detroit went the same direction Chicago is not too big to go bankrupt.
The man problem now is with a lower credit rating the city pays more for its loans which can only mean one thing, more taxes to fund same.
Maggie daley park- 55 million
Rahm has access to far more money than he admits (TIF's etc.) He wants all this doom and gloom because he's blaming it on the pensions he refuses to contribute to.
He figures these repeated doom and gloom reports will help him accomplish his goal of fucking us out of our pensions with "reform" aka substantial givebacks.
The other thing nobody is paying attention to here is that CPS is going to borrow another $700 million via bonds. A significant portion of this money is being used to pay of short term debt, and the other half to pay for operations.
CURIOUSLY 700 million is the price tag for this year's CPS pension payment to the teachers retirement fund.
Don't believe Rahm's stooges claims that they are just refinancing to lower interest costs.
Think of it like a family paying of a big credit card balance with a home equity loan, then paying next months mortgage payment on the credit card. The end is near.
If CPS defaults and files bankruptcy, the State of Illinois will have to take over CPS. The State is broke.. Where will the money come from?
Rahm borrowed to avoid a CPS bankruptcy this year..
Hey Holder, how about some indictments! O wait laws may have actually been violated here.
What a joke!
Anonymous Anonymous said...
Maggie daley park- 55 million
2/28/2015 08:10:00 PM
No.
Grant Park Garage roof, $54,980,000.
Signs saying Maggie Daley Park, #20,000.
Yes, you are probably right. I love to read the comments about hidden money and city conspiracies. The city is on the way to bankruptcy ( must be approved by the state according to law). Independent accounting firms have all said that it is impossible for the city to raise the needed case to avoid insolvency. And, that means the end to all union contracts, reworking of pensions ( a substantial cut). I am retired and in my 70s and I don't relish going back to work to make ends meet. The state ( democrats and republicans) are looking at changing the state income tax to a sliding scale and taxing pensions and social security. It is coming and no amount of crying is going to stop it. Illinois is the worst state in the union for funding and debt and the CPD pension fund is the worst funded in the country. I blame Daley for this.
2/28/2015 04:51:00 PM
That's like saying you're going to declare bankruptcy, but you're going to hold onto that office building you own downtown. YOU CAN'T.
If Rahm Emanuel allowed this city to decline into bankruptcy after four years in office, it would be on him and he would be untouchable in politics and in business from that moment on.
First, he could never live with being shunned. And, second, a billion or two in TIF cash CAN'T be held back when the City declares its assets and liabilities.
Bloomingdale Trail is closing in on $200 million.
Well past $100 million.
Mo$tly to Wal$h Con$truction.
Chuy will fix the problem by doubling taxes and tripling spending. Time for more wealth distribution from the makers to the takers. Detroit II.
TIFs earn interest? Are you brain dead ? What are the Fed Funds rate at? Big Banks can borrow at .25% from the Fed-- How much do you think they would pay to borrow from the TIF unless they are such a credit risk.?
Anonymous said...
The other thing nobody is paying attention to here is that CPS is going to borrow another $700 million via bonds. A significant portion of this money is being used to pay of short term debt, and the other half to pay for operations.
CURIOUSLY 700 million is the price tag for this year's CPS pension payment to the teachers retirement fund.
Don't believe Rahm's stooges claims that they are just refinancing to lower interest costs.
Think of it like a family paying of a big credit card balance with a home equity loan, then paying next months mortgage payment on the credit card. The end is near.
If CPS defaults and files bankruptcy, the State of Illinois will have to take over CPS. The State is broke.. Where will the money come from?
Rahm borrowed to avoid a CPS bankruptcy this year..
Isn't the teachers contract up this year?
Anonymous Anonymous said...
Hey Holder, how about some indictments! O wait laws may have actually been violated here.
What a joke!
3/01/2015 01:36:00 AM
Holder left office on Friday.
He left one heck of a parting gift, though, defending Al Sharpton in this Forbes article. And THIS was our Attorney General?
http://www.forbes.com/sites/robertwood/2015/02/28/eric-holder-defends-al-sharptons-ties-to-white-house-despite-tax-debts/
>>>Anonymous said...
Hey Holder, how about some indictments! O wait laws may have actually been violated here.
What a joke!
3/01/2015 01:36:00 AM<<<
Holder would rather indict 1,000 honest white cops that one crooked lying thievin' scum sucking rathole dwelling Demo-Communist politician.
And Chuy is not a Communist????????. HA!!!!!!!....
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