Wednesday, June 17, 2015

We Really Hate to Do This....

....but we love spending money so much, so we're going to have to borrow another $1.1 billion of it:
  • Amid comparisons to “shuffling the deck chairs” on the Titanic, the City Council’s Finance Committee agreed Monday to add another $1.1 billion to the mountain of debt piled on Chicago taxpayers after aldermen were warned the city’s junk bond rating demanded it.

    When its bond rating dropped below investment grade, Chicago could have faced paying nearly $2.2 billion to bankers under a series of complex deals dating back to former Mayor Richard M. Daley’s tenure.
Never the words "spending cuts." Just things like "junk bonds," "shovel-and-toss," and our new favorite - "legacy costs," a polite way of saying Shortshanks left us with a giant smoking crater of a hole in the ground that can only be filled by money....money no one seems to have.

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35 Comments:

Anonymous Anonymous said...

borrowing money that has yet to be printed, and who is calling this scheme. in the last 40 years, this revelation is actually quite brilliant. You would have to have an degree in economics to understand it.

The 1980s says it all--- "Put it on my charge card!!!"

6/17/2015 12:08:00 AM  
Anonymous Anonymous said...

Rahm rewarding his bank buddies. The city council knew 5 years ago they needed the cash but did not take out the loan then.

Now that Rahm the financial wizard, who has lead to Chicago having the a credit rating equal to Puerto Rico takes out loans. The bank charge higher interest rates because Rahm doe not pay his bills!

Rahm receives free gifts and NO one worries about ethics. Company's donate millions for what? Charter school contract/ Maggy Daley Parks/ Stadiums for losing college teams/ Tax credit for billionaires/ Movie studios free bees.

The laughable casino scheme fooling the Fop and Fire Unions who admit to not being smart enough to understand a bait and switch.

So now what...

6/17/2015 12:13:00 AM  
Anonymous Anonymous said...

First, Daley should be shunned. No invitations to ribbon cuttings, no mention by any current officeholder, no sworn escort/livery/chauffeur service provided by the taxes paid by the citizens of Chicago, no eye contact on the street.

Then, with a finger pointed firmly at King Richard's ridiculously long reign in office, the current mayor should institute a moratorium on new spending for one year, during which time a true audit of all debt, income, spending and holdings would be undertaken and remedies could be put in place.

With a sincere apology and a dramatic brushing-away of a tear rolling down his face, the current mayor could play the benevolent dad, saying, "Much as we might want (this) (this) and (this), we can't afford it just now. We do not spend money we don't have. Being responsible can be painful sometimes, but it is necessary."

And this spiral could finally end.

6/17/2015 12:22:00 AM  
Anonymous Anonymous said...

Holes in the ground like that are best filled with the bodies of politicians. Like the French did in the late 1700's.

6/17/2015 12:32:00 AM  
Anonymous Anonymous said...

Sounds to me like Chicago is hurrying down the road to Detroit. Soon it will be time to abandon ship.

6/17/2015 12:59:00 AM  
Anonymous Anonymous said...

It doesn't mean anything. When the big crash comes it will all be worthless anyway.

6/17/2015 01:09:00 AM  
Anonymous Anonymous said...

Chicago's politicians are addicted to spending money. Money they do not have.

For addicts, there will never be enough ***
*** Drugs, alcohol, gambling, sex, or money. Pick your poison.

6/17/2015 01:16:00 AM  
Anonymous Anonymous said...

The pols need money to buy votes.

6/17/2015 01:48:00 AM  
Anonymous Anonymous said...

Legacy has some legitimacy to it. Daley did create a whole bunch of new agencies to put more Shackman exempt people on the payroll. He created two agencies just to deal with police (and fire to some extent) which did not exist many years ago. OEMC is its own agency now and so is IPRA. Both of these agencies have created a burgeoning bureaucracy that demands tax money. I am sure that there are plenty of other agencies which have been created over the last twenty of so years which have enormously exacerbated our tax problems. Of course, now there is no way to go back, so we are burdened with an ever expanding bill and no tax base to cover the cost. Of course, the politicians will simply blame the police and act accordingly.

6/17/2015 01:49:00 AM  
Blogger JohnL said...

Just so Rahm can spend spend SPEND!!!

6/17/2015 04:59:00 AM  
Anonymous Anonymous said...

Daley should be in hiding. Daley should be made to feel that hiding is the best place for him. Daley should have his feet spat upon when he shows his face anywhere in this berg.

Career politicians is synonymous with career criminal. Don't the voters get that?

6/17/2015 05:26:00 AM  
Blogger Mr. SouthSide said...

Spending less would make the Rahmster very unpopular with his voters. Forget about it.

6/17/2015 06:45:00 AM  
Anonymous Anonymous said...

My back of the envelope calculations say 300-400 million of the 1.1 billion is money borrowed to pay for current operations, not refinance existing debt. Wanna play kick the can.

6/17/2015 06:46:00 AM  
Anonymous Anonymous said...

Ha! and a Daley nephew with Morgan Stanley gets paid to clean up the mess

6/17/2015 07:03:00 AM  
Anonymous Anonymous said...

To make it more injurious billy Daley jr is setting up the deal netting his company Morgan Stanley a easy 2,4 million profit! What the payoff for the daleys? No Feds here indicted the criminal Daley crime family! At least john gotti the mobster was out front about what he did! Al Capone went to jail for what puny amount of federal taxes? The poor go to jail the rich and powerful payoff and own the criminal court system! A long time ago comedian Richard Pryor said " you go to court to find justice, you go to prison and find just us" the poor blacks, a better statement would be you find just the poor and non-connected in prison!

6/17/2015 08:17:00 AM  
Anonymous Anonymous said...

Don't you mean Chitanic

6/17/2015 08:20:00 AM  
Anonymous Anonymous said...

Shanks again, and shanks for the memories. Shortstanks again ! A smoking hole indeed, tax payers left holding the trick bag.

6/17/2015 10:04:00 AM  
Anonymous Anonymous said...

67 mill for Maggie park? 93 mill for the 606, 80 mill for the nature walk at Rosehill Cemetary? pretty soon they'll be talking real money.......what ever happened to the boathouses on the north branch?

money for that shit, none for a legal obligation

assholes all!!

6/17/2015 12:03:00 PM  
Anonymous Anonymous said...

Bond underwriters, financial advisers and lawyers will be paid more than $7 million as part of the deal. The lead underwriter is Morgan Stanley, which will be paid more than $2.6 million.

An affidavit from that firm presented to aldermen was signed by William Daley Jr., the nephew of former Mayor Richard M. Daley. He is a managing director of the firm.
...................................................................................
Things that make you WTF!!!!!!

6/17/2015 12:10:00 PM  
Anonymous Anonymous said...

Bribes, hush money, etc. are still being paid in the form of city contracts. If the Powers That Be and the Powers That Were, don't want certain facts to see the light of day, the money has to continue to flow.

6/17/2015 12:30:00 PM  
Anonymous Anonymous said...

That son of a bitch left this city broke he has no legacy other than that fact U of Chicago hires this scum bag would you get an operation there ......? good luck if the operate like they hire your ass is grass.

6/17/2015 02:00:00 PM  
Anonymous Anonymous said...

Rahm appoints a new 'yes-man' to Airport Commissioner, she says YES to a brand new el train system to Ohare to shuttle pissbums and pickpockets 10 mins faster at a cost of What Difference Does It Make.
Let's see, billions of dollars spent so far on uncompleted Deep Tunnel (Chicago still floods), Ohare Modernization (let's move dirt) and Dead End Block 37 Station. None of these pet projects have proved to be beneficial.
The same can be said about any Daley or Emanuel.
But both are still spending our money.

6/17/2015 02:43:00 PM  
Anonymous Anonymous said...

When can we expect the city to sell of some of its assets instead of taking on new debt?

6/17/2015 06:20:00 PM  
Anonymous Anonymous said...

If we had politicians working for us, they would be suing the banks that wrote that swap deal.

Alabama fought back on the reaming they got from Wall Street and they won.

I'd like to know what makes the Chicago swap scam so different that we have no legal recourse.

-Citizen

6/17/2015 06:40:00 PM  
Anonymous Anonymous said...


Anonymous said Mayor Daley Sucks

6/17/2015 06:49:00 PM  
Anonymous Chicago Crime Visualizations said...

Check out this site that provides visualizations using Chicago's crime data, including information on crime spending:
http://www.arrestchicago.org/

6/17/2015 07:28:00 PM  
Anonymous Anonymous said...

Good column about the Shortshanks clan in the Slum-Times. Those bastards.

6/17/2015 08:17:00 PM  
Anonymous Anonymous said...

Anonymous Anonymous said...
To make it more injurious billy Daley jr is setting up the deal netting his company Morgan Stanley a easy 2,4 million profit! What the payoff for the daleys? No Feds here indicted the criminal Daley crime family! At least john gotti the mobster was out front about what he did! Al Capone went to jail for what puny amount of federal taxes? The poor go to jail the rich and powerful payoff and own the criminal court system! A long time ago comedian Richard Pryor said " you go to court to find justice, you go to prison and find just us" the poor blacks, a better statement would be you find just the poor and non-connected in prison!

6/17/2015 08:17:00 AM
True, and if your a copper to prison, after they take your home,pension,savings, and family, lawyers suck you dry, if your rich politically correct your honored! Let's see veneko killed an innocent, everything's covered up promotion given, never ceases to amaze us the honest people who seek justice but receive vengeance from the elite!

6/17/2015 08:29:00 PM  
Anonymous Anonymous said...

Sure this will happen. Wait for it...cut back spending? That's votes! And power! And control! Look at Gov Rauner how well it's working out for him....


First, Daley should be shunned. No invitations to ribbon cuttings, no mention by any current officeholder, no sworn escort/livery/chauffeur service provided by the taxes paid by the citizens of Chicago, no eye contact on the street.

Then, with a finger pointed firmly at King Richard's ridiculously long reign in office, the current mayor should institute a moratorium on new spending for one year, during which time a true audit of all debt, income, spending and holdings would be undertaken and remedies could be put in place.

With a sincere apology and a dramatic brushing-away of a tear rolling down his face, the current mayor could play the benevolent dad, saying, "Much as we might want (this) (this) and (this), we can't afford it just now. We do not spend money we don't have. Being responsible can be painful sometimes, but it is necessary."

And this spiral could finally end.

6/17/2015 12:22:00 AM

6/17/2015 09:13:00 PM  
Anonymous Anonymous said...

Anonymous Anonymous said...
My back of the envelope calculations say 300-400 million of the 1.1 billion is money borrowed to pay for current operations, not refinance existing debt. Wanna play kick the can.

6/17/2015 06:46:00 AM


Can we kick Rahm in his can?

6/17/2015 09:15:00 PM  
Anonymous Anonymous said...

Anonymous Anonymous said...
My back of the envelope calculations say 300-400 million of the 1.1 billion is money borrowed to pay for current operations, not refinance existing debt. Wanna play kick the can.

6/17/2015 06:46:00 AM


Can we kick Rahm in his can?

6/17/2015 09:15:00 PM  
Anonymous Anonymous said...

Seriously...How does the city owe so much money to the pension funds, and then borrows another billion dollars, with a really bad credit rating and no one bats an eyelash..? Seriously?

Anyone for pitchforks and torches??? Head towards city hall...

6/17/2015 10:15:00 PM  
Anonymous Anonymous said...

Government on any level will never be fixed until the start tossing these assholes in jail.

6/18/2015 08:06:00 AM  
Anonymous Anonymous said...

Am I the only one wondering how the FOP has not launched a lawsuit saying the city hasn't met it's pension obligations...? Really?? How does the status quo remain here.,..?

6/18/2015 12:49:00 PM  
Anonymous Anonymous said...

Anonymous Anonymous said...

Seriously...How does the city owe so much money to the pension funds, and then borrows another billion dollars, with a really bad credit rating and no one bats an eyelash..? Seriously?

Anyone for pitchforks and torches??? Head towards city hall...

6/17/2015 10:15:00 PM
Borrow the money no problem the first 550 million paid into the pension fund that would be "change we could believe in!"

6/18/2015 04:12:00 PM  

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