Borrowing - Because of the Police
Chicago is broke, yet banks keep lending it money:
- Mayor Rahm Emanuel's cash-strapped City Hall is preparing to borrow $1.1 billion to complete his debt restructuring plan, pay off a major court judgment and cover police back pay, among other costs.
Whoops! There it is - those nasty police causing Rahm to have to borrow another $1.1 billion dollars! Damn those police anyway.
And exactly how much of that $1.1 billion is "back-pay"? Under 7%, a mere $75 million. But there's the Department, front and center of the opening paragraph, and barely mentioned is the 32% in service costs to convert the bad debt to less-bad debt.
We aren't money giants like Rahm, who made millions working in the world of high finance...oh wait, he didn't make that money either - it was a gift salary for being connected at the hip to the Clinton political machine back in the day. But even we know that when expenditures outpace income, you have an unsustainable model, and borrowing only aggravates the problem.
And exactly how much of that $1.1 billion is "back-pay"? Under 7%, a mere $75 million. But there's the Department, front and center of the opening paragraph, and barely mentioned is the 32% in service costs to convert the bad debt to less-bad debt.
We aren't money giants like Rahm, who made millions working in the world of high finance...oh wait, he didn't make that money either - it was a gift salary for being connected at the hip to the Clinton political machine back in the day. But even we know that when expenditures outpace income, you have an unsustainable model, and borrowing only aggravates the problem.
Labels: money questions
posted by SCC at 12:31 AM
40 Comments:
Borrowing to get yourself out of debt is a standard liberal financial model. It goes along with increasing spending to fight debt. That is how democrats keep getting elected across the nation, they are so smart and good with other peoples money.
Wow. If I wasn't a lifelong Chicagoan, I would say this is unbelievable; but its not. Doesn't Rahm have some connection to these banks?
If your retirement funds include municipal bond funds, you might want to reconsider?
Tax free and all that is nice, but preservation of capital is more important.
After the Greeks Default, watch how the bond markets react.
Financial Risk is going to be re-evaluated world wide. And Chicago's debt is too damned risky.
Sooner or Later, You Run Out of Other People's Money.
OT: What the hell is this now.
Saturday morning, 6/13/15
Attackers opened fire on Dallas police headquarters early Saturday as an armored van charged the building, authorities said.
After the attack, police found suspicious bags near the headquarters. At least one contained explosives, prompting evacuations from areas around the police headquarters.
Authorities believe up to four people may have opened fire from various locations with automatic weapons, including from the van, the police chief said.
Don't forget who got Rahm that job...his buddy Bruce Rauner.
They will never understand two simple words---Spend Less.
Big changes, effective Sunday
Godsel to 009
Panepinto to HQ
Wow . .
Look at the new Kool-Aid drinkin' lieutenants on the opening page:
cpdlts.com
I modeled my home finances after the City's. I am currently in jail.
Cut Welfare, Cut Food Stamps, Cut City, County,& State spending. Cut All Chicago, Crook County, State of Illinois Politicians Salaries. Cut all CPD/CFD Supervisor above Sgt. Salaries. Investigate use of inferior Road Repair Materials by Companies contracted by Politicians to perform repair work.
Slash Gold Braid Pensions, (kickback scheme for politicians), Civil Service Rank Only. 2 P.O. Pensions could be paid out for cost of 1 Gold Braid Pension. Gold Braid = Scam.
Restore Pension solventcy
Restore City's Credit Rating
What the Hell is going on in Dallas?
Armored car? Bombs? HQ attacked? Hopefully, no one gets any ideas up here.
It will be very interesting to hear the details on what is going on there.
Next case.
I would find it interesting to see who is getting the business of loaning money to the city, who are the bankers, lawyers, consultants, and such. Are those functions bid out or go to the "connected." Do these businesses pay to play? Simple question why not raise taxes a bit to pay the bills. Sooner or later that will happen but our fearless leadership will continue to kick the can down the road.
Legalize weed. Tax the shit out of it. All the proceeds go to police and fire pensions.
Call the next case. Not a cop.
Those damn polices want back pay and expect the city to find their pensions too?
That's bold.
That's the message Rahm would like to spread.
If Dallas police had been wearing crown caps and had their tattoos covered this never would've happened.
Legalize weed. Tax the shit out of it. All the proceeds go to police and fire pensions.
Call the next case. Not a cop.
6/13/2015 10:54:00 AM
Obviously not a cop. You would know that the pensions would not get one dime from the taxation on weed.
Why don't we bring this pandering jag off to his knees and just answer calls? Wtf is with this department!? The contract fucking sucked, it shouldn't have been settle before the assholes election. Should've squeezed that little asshole for a pension payment, raise, and no other changes during his election. he would've caved
He's just a POS
I would like to see how much "weed" would be sold at
street corners if it were legalized.Finally we could see if these drug spots can be eliminated.What do you think officers?If you were turned loose how long would it take?
Wow . .
Look at the new Kool-Aid drinkin' lieutenants on the opening page:
cpdlts.com
So if you make Lt. You automatically are a kool aid drinker ? I think the bigger WOW is the fact that you are not a Lt., yet for some reason you are checking their website. Sounds like a sour grapes Sgt.
FOP- can't you lads & lassies at least rebut these slander tactics and get our message out? Even Sen. Cullertons Often Quoted "the Fire & Police Unions are on board with this" remark two weeks ago was never refuted. What do you people on Washington St. do besides plot the next Presidential attempt to do nothing while appearing busy & concerned?
Anonymous Anonymous said...
If your retirement funds include municipal bond funds, you might want to reconsider?
Tax free and all that is nice, but preservation of capital is more important.
6/13/2015 04:05:00 AM
Your retirement money should NOT be in tax-free munis. The point of a retirement fund is to grow as much as you can since all growth is tax free until withdrawn. You should be looking for more growth than that provided by munis. If a professional led you in this direction get yourself a new advisor. If you did this on your own, go take a few classes. You are falling behind the inflation eight ball with your current strategy.
What about all the money the city made while the cops didn't have a contract? Was it 2 years? During that time, the city was banking all that cash that should have been going to the cops in the first place.
Count the zeroes: Zimbabwe central bank allows banknote exchange
"June 12, 2015: Zimbabwe’s central bank is allowing citizens to exchange bank notes from its old currency, which collapsed and was discarded years ago, for American dollars.
"However, 1000 trillion Zimbabwean dollars will only fetch 40 U.S. cents.
"Zimbabwe abandoned its currency for a system dominated by the U.S. dollar and South African rand after inflation hit 230 million percent. Street vendors didn’t even accept a $100 trillion note that was issued.
"Starting Monday, stacks of Zimbabwean bills that might be kept by Zimbabweans can be exchanged for U.S. dollars. The officer is part of a plan by the central bank to phase out the currency entirely.
"Some people in Harare, Zimbabwe's capital, said they disposed of their Zimbabwean dollars long ago.
"I used it as garden manure," said Isaac Mutezowepasi, a street vendor. "Why would I have kept that dirt?"
http://www.foxnews.com/world/2015/06/13/count-zeroes-zimbabwe-central-bank-allows-banknote-exchange/?intcmp=latestnews
Obviously not a cop. You would know that the pensions would not get one dime from the taxation on weed.
You obviously are a cop thinking you know where that money would go. You aren't in that loop. You're not part of the 1% and only they know where that money's going.
Why don't we bring this pandering jag off to his knees and just answer calls? Wtf is with this department!? The contract fucking sucked, it shouldn't have been settle before the assholes election. Should've squeezed that little asshole for a pension payment, raise, and no other changes during his election. he would've caved
That's not gonna ever happen. Too many people getting numbers for VRI. Best thing to do is leave the job and do something else.
I hate to print this but I will. If Rahm is getting out of those credit swaps, he is doing the right thing. Those things are leveraged so much and if the market goes against you, the losses can be disastrous. Just look our pension fund during the melt down-- how much do you think the fund lost? 50 million? 100 million?
Just fund the pension rahms that is "job #1" don't care how you do it just do it! 3 more months 29 and a day see ya looking at Franklin Tennessee, Fort Lauderdale, Scottsdale Arizona! Any votes for best place to retire? Was going to stay here house paid off, but screw it neighborhood is changing section 8 and illegals west end of 008! No police why not vri here for the taxpayers that pay for and respect police? Why put all police service in the thugland ghetto? Ridiculous this city is ripe for taxpayers revolution!
Anonymous Anonymous said...
Why don't we bring this pandering jag off to his knees and just answer calls? Wtf is with this department!? The contract fucking sucked, it shouldn't have been settle before the assholes election. Should've squeezed that little asshole for a pension payment, raise, and no other changes during his election. he would've caved
6/13/2015 12:36:00 PM
WTF are smoking and can I have some. You have already forgotten the history of our last contract negotiations and the fact that we didn't start on time because of the "letter". So the sergeants, lieutenants and captains ALL negotiated before us. We were lucky to have gotten back pay for the 1st year. So whoever you are this isn't what it takes to get the troops riled up against the FOP.
Funny he didn't say "we need the money to pay our contractually obligated debt to our fine police officers".
Right.
All Rham is doing is insuring his future cash flow. By making a bank and some cronies a 32% return for this deal he will be getting pay back in the future when he is longer the mayor of this city. Pay to play at the snake in the grass' finest.
Hey but the good news is the fop has filed a suit in regards to the tatoos issues with long sleeves, yeah that will show them!!!!
Wow . .
Look at the new Kool-Aid drinkin' lieutenants on the opening page:
cpdlts.com
So if you make Lt. You automatically are a kool aid drinker ? I think the bigger WOW is the fact that you are not a Lt., yet for some reason you are checking their website. Sounds like a sour grapes Sgt.
6/13/2015 04:21:00 PM
-------------------
I saw the picture.... he's right.. that one dude finished of the entire pitcher of Kool-Aid !
Anonymous Anonymous said...
Why don't we bring this pandering jag off to his knees and just answer calls? Wtf is with this department!? The contract fucking sucked, it shouldn't have been settle before the assholes election. Should've squeezed that little asshole for a pension payment, raise, and no other changes during his election. he would've caved
6/13/2015 12:36:00 PM
WTF are smoking and can I have some. You have already forgotten the history of our last contract negotiations and the fact that we didn't start on time because of the "letter". So the sergeants, lieutenants and captains ALL negotiated before us. We were lucky to have gotten back pay for the 1st year. So whoever you are this isn't what it takes to get the troops riled up against the FOP. Read my first post, not one mention of the FOP. What's the matter asshole the guilt of selling us out getting to you?
Yeah, fop asshole! You mean the letter that any board member could've signed and sent, but they wanted to play games (with our livelihood) because "they" didn't like shields. Go blow smoke up someone else's ass. You fucks are bought and paid for. lil D jr. Will be SGT within two years. No ones trying "to get the troops riled up against the FOP."
Obviously not a cop. You would know that the pensions would not get one dime from the taxation on weed.
You obviously are a cop thinking you know where that money would go. You aren't in that loop. You're not part of the 1% and only they know where that money's going.
6/13/2015 05:16:00 PM
Another smart ass asshole. I am a cop you bitter jag off. I never said I know where it's going. But, I do know where it's not going, our fucking pensions. Re-read my post, dimwit. You lifeless p.o.s. just had to throw your worthless rebuttal in because your pride was hurt. Fucking stroke
Banks keep lending Chicago money because it has $Billions in public assets they can seize in a bankruptcy.
Richard M. Daley owns $62 million of that for approving a parking garage for his buddy that he knew was violating a previous contract with the current operators. That fucking guy has done more to financially strap this city than anything else in history. He should be the focus of our ire before Rahm.
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