More Debt
- Mayor Rahm Emanuel's plan to manage the city's burdensome liabilities with more borrowing is moving forward.
The city on Wednesday sold $745 million worth of taxable bonds to more than 70 investors, Chicago finance officials said. The deal will allow the city to pay back over decades expenses such as $170 million in debt payments coming due this year and more than $40 million in bank fees driven up by the city's deteriorating credit.
Chicago is also using the bonds to postpone paying bills related to former Mayor Richard M. Daley's failed Olympics bid and his privatization of the city's parking meters, according to borrowing documents released last week.
The Legacy of Dick - more debt than anyone could pay off in two lifetimes.
Labels: money questions
posted by SCC at 1:03 AM
36 Comments:
Oh Boy! What an investment.
Imagine what kind of yield you can get by buying these bonds.
Load up the mutual funds with these winners.
What kind of interest rate is the city paying on this? The story doesn't say.
Little Dick....the genital wart of the City.
Where the fuck has Dickie been?
I've been looking for him.
Start selling or leasing. Lease the naming rights of streets and city parks and buildings.
Sorry for the repeat SCC, but I think its important for all our interests:
Anonymous said...
You know, perhaps the Sun-Times should investigate under the FOIA how much the Pension Board Attorney, David Kugler, et al has been paid since he's been the attorney of record at the Pension Fund for a million years.
Let's find out how much of our pension money was paid to date to this attorney and his firm. Our pension fund is a cash cow for this bottom feeder
Debt for 2 lifetimes or 4 years to 8 years of white washing dish pan hands of Springfield politicians to get pension mods going...
Daley plunged the city into financial turmoil . He declined to raise property taxes and relied on borrowing to pay the bills and to satisfy unions and social welfare programs. It is a documented fact that the property taxes are some of the lowest in the country and well below the surrounding metropolitan area. Now, that might also say that the surrounding areas property taxes are too high !. But, the spending should have been halted years ago or the taxes raised to meet the proposed budget. This is the same thing that Illinois has been doing for years. It just seems that it is a liberal democratic trick. Now, the house of cards is falling apart and the Ponzi scheme is unraveling. No telling where all of this will lead.
Richie Daley should be in jail.
Quite the mess. Try spending less.
While you are bankrupt, only a liberal Democrat could think borrowing money to pay interest owed in the future on the additional money you have just borrowed to pay your day to day expenses is the way to solve the fiscal problem of being hundreds of billions of dollars in the hole like Chicago is.
For a guy who made millions in finance, Rahm obviously doesn't know his ass from page eight where solvency is concerned.
Debt is not the solution when you can't print money and where you can print money you do that very prudently to keep it worth someting.
Like Daley before him, he's kicking the can down the road. There is no possibility of an event occuring that will result in the increase in economic activity of Chicago and Illinois that would result in cash receipts that would allow the city and state to become solvent.
The people who benefit from this debt bing are the Bankers and politicians.
Money is Debt. Look it up.
The banking system is set up to create money out of thin air from debt. For every dollar a bank gets someone to go in debt, our banking system allows the bank to create 7 to 15 to 20 additional dollars out of thin air without the owners having to add capital to the bank with their -- own -- money.
It's called "Fractional Reserve Banking" and it's been around for hundreds and hundreds of years. Except today the difference is, back in the day, the bankers were relatively prudent. For every dollar they got someone to go in to debt, they created 7 to 10 dollars to loan out again (see how that exponentiates their return from interest?). Now they create 15 to 20 dollars for every dollar they can dupe someone in to borrowing.
Now remember, the bank owners get away with making interest on money they loan out without putting any more of their own money in!
Think about that. Not only are they making 6-21% interest on mortgage and credit card and corporate loan debt from the seed money they put in the bank , they make that same return on the 7-20 dollars they get to create out of thin air. It results in a mushroom cloud of interest revenue for the lenders and an epic return from money loaned.
How does a bank go broke when they can do that? Greed.
Thats's why they push credit card and other debt. And now that they have had the government bail them out with our money when they abuse it and concoct other crazy shit like swaps and derivatives, they are doubling down in doing more.
When you don't abuse fractional reserve banking. it it works, but they have been abusing it a looonng time.
That's why Rahm is putting the city more in debt and doing insane things like borrowing to pay interest and pay day-to-day bills, rather then making the tough decisions to bring back solvency to the city.
Rahm other politicians and the bankers make out...we get fucked!
Sorry I'm not an accountant, but how can rahm keep spending money he does not have? Expanding river front, building a "flyover" by navy pier and extending the 606 trail! He is just moving the billions hidden around, a master at the "magic" craft, now you see it now you don't!
Just like paying off a credit card by applying for another credit card and taking out more debt. This fucking city...
Paying bills to the privatization of parking meters? I thought the cash flow was the other way around
"It's all for the children".
Tiny Dancer is doing to the city what his boss, Obama, is doing to the country. Obama is bankrupting the country - Tiny Dancer is bankrupting the city. Obama is destroying the Nation's defense by gutting the military - Tiny Dancer is destroying the city's defense by letting the number of active police fall to dangerous levels. And it so it goes.
Why doesn't Chicago buy chunks of vacant land from Detroit and build our section 8 there and relocate Chicagos problem?
Chicago will build a memorial at the cost of one hundred million or more in his honor
Wait, I thought WE got paid for selling the meters. How can there be unpaid bills ?
Speaking of debt issues.......
Let's pulled out the way back machine. Are you ready Mr. Peabody?
http://www.chicagotribune.com/chi-skyway25oct25-story.html
My favorite part of the article, "The city did not lease the skyway to use all of the funding for day-to-day budget needs," Wendy Abrams, a spokeswoman for the city's Budget Department, said Wednesday. "Rather, it is a long-term asset that should provide benefit to the taxpayers for the long term."
So, tax payers, how's that long term benefit doing?
Over 200 Million spent on the failed Olympic bid,Olympics are great for the economy ask Greece.
Like Greece the creditors will be demanding city assets soon as the tax base collapses
What we selling next? The airports? Anything with the Daley name on it? How about selling that big bean in millennial park to the scrap metal yard.
Yeah but let's not use the word selling when we do it for fear of the images the words conjure up. We'll call it privatization and boast about how doing it will help the children and other such bullshit.
Cook co. just passed a new 1% sales tax increase and the mayor has his property tax increase all set to go.
In 2014 the city population only grew by an estimated 82 people after at least a decade of decline so it's not like we are growing the labor force to share the tax burden.
In fact it's quite the opposite. If one looks at the BLS stats Chicago's labor force is smaller now than it was in 2000, fifteen years ago! And we know what has happened to most peoples wages over the last fifteen years.
Hell once the city is bankrupt everyone's property is open game under Eminent Domain laws so don;t think that you're safe.
All this, and let us not forget all the political parasites down in Springfield are plotting more tax increases as I type.
Broken Winddows MY ASS. None of the corrupt oligarchs are even up on charges
JUST A CITIZEN SAYS: The city is a disgrace. I feel bad for all you LE Officers who, day after day, try to do your job only to have it thrown back in your face either financially or verbally. Prayers for all of you every single day.
Anonymous Anonymous said...
Start selling or leasing. Lease the naming rights of streets and city parks and buildings.
7/16/2015 06:44:00 AM
NO.
How about spend within your income, instead.
Yet Shortshanks continues to collect several government pensions and gets city butlers/bodyguards and a city vehicle.
The only thing we get is the shaft.
Forensic audit
Tribune said city will pay eight percent interest. Usuary rate for a hunk bond entity, but keeps creditor banks at bay.
Remember...
You early retiring, sweet $100k pension getting, underworked,
overpaid, out of control Cops need to give back some of your
cushy benefits since it's your fault the city is a financial basket
case.
And, soooo----where is Richie??? Is he in an institution or what?? We don't see him out and about very much. Maybe his bedside manor is so intriguing to his Girl-Friend...the Doctor...that he spends lots of time inside.
That fucking POS Daley should be rotting away in the deepest hole of a jail for what he pulled off.
I thought there was surplus 'private' money left over from the Olympic bid and it was parceled out somewhere. Too tired to search for it now, but pretty sure that was the claim.
I am not letting Daily off the hook, but Rhambo has had fours to deal with this,
You early retiring, sweet $100k pension getting, underworked,
overpaid, out of control Cops need to give back some of your
cushy benefits since it's your fault the city is a financial basket
case.
YOU, must be a special kind of stupid...
Anonymous Anonymous said...
I am not letting Daily off the hook, but Rhambo has had fours to deal with this,
7/17/2015 06:40:00 AM
In the interest of making your post understandable:
I am not letting Daley off the hook, but Rahm has had four years to deal with this.
"The Legacy of Dick"
says it all...
Not letting Quentin Dailey off the hook?
Rahm' s on all fours?
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