Mortgage the Future
- Chicago Public Schools' latest long-term borrowing deal will buy the district a bit of financial breathing room through 2019 but comes at an immense cost to future generations.
By the time the $500 million loan is paid off, children now entering kindergarten will be in their mid-30s and the school district will have spent $850 million in interest costs alone — making the total expense of the bond issue a whopping $1.35 billion.
And only a small fraction of the money from the long-term bonds issued in July will be used for school construction or classroom improvements, which budget experts say should be the primary use for long-term debt. CPS is using the biggest chunk of the loan to reimburse itself for failed bond market deals the district previously covered with cash. Another large portion will be used to shave a few hundred million dollars off old debts — even as it extends those debts as much as 25 years.
Get out while you can with whatever you can carry.
Labels: money questions
posted by SCC at 12:02 AM
41 Comments:
Can't wait to see how fast the city sinks when the only ones left are illegals and link cards.
Does CPS even have a qualified mathematics teacher with a decent education, who could had looked at this and say you're getting screwed!!! Even a carpenter who works for CPS could had said the same thing... and those guys know about screws
Anybody do the research on the best (red) states and most tax friendly to move to other than Florida?
That would be alright if the schools were actually educating the students.
What is the graduation rate?
What is the SAT and ACT performance?
How many pass the basic skills tests?
Maybe CPS should be shutdown?
How is their Pension Fund doing? Did any of this money make it to the Pension Fund?
Rahm, Madigan, Daley and the Democrat Machine are busting out the City of Chicago.
https://m.youtube.com/watch?v=ZPtjyqgZAUk
Selling off anything that is valuable, mortgaging the city and the schools to the hilt, and letting the place turn into a crime infested shit hole.
Prove me wrong?
So I take it CPS never offered an economics class.
CPS paying about $1.7 million per day in interest expense on all LT debt. Complete mismanagement. Contact US dept of education and file a fraud report with the inspector general. $9.5 billion in debt and no end in sight to the borrowing and no way to pay back the debt without BK or bailout from state or Feds. Better have the Feds takeover CPS and start the layoffs and BK or god knows what to fix finances. Only way we got to this point is gross incompetence and or fraud.
"Deficits don't matter "
Another reason I send my kids to a private school. It isn't so deep in debt it will never dig it's way out. The City is collapsing around us.
A long time ago someone decided to make Chicago
one big Monopoly Game, and it continues today,
jacked up on financial steroids
It's the Big Top with Carnival Barkers, that Jim Cramer
is just a piker compared to what we got
Got you covered with taxes, from cradle to grave
so just keep on working 'cause we really need your money
and try not to get sick while you're slaving, don't get sick
'cause you'll need an Rx just for cough drops, but you might
have to wait for a Doctor 'cause the schedule is really backed up
from all those fools who worked themselves to death long before you
but don't you just worry 'cause the diggers still work to keep the system humming
funeral homes, they never go out of business, they survive, they prosper
so set that alarm to get one more day on your record, they keep track, you know
and then in the end you can retire and go home if you still have one, you're just
one more brick in the wall so keep working hard and in the end it will pay off
we solemnly promise you, so just trust us, please, please just trust us
Perhaps a Korean ballistic missile strike in Chicago isn't such a bad idea right now, you can bet the twerp murder mayor has an insurance policy to cover the loss...
Isn't this what they called a "Bust Out" in the movie "Goodfellas?"
Buy everything on credit, sell it out for whatever you can get. Sell anything that isn't nailed down, and mortgage it three times if it is, Airports, Parking, Stadiums, whatever. Someone will pay you for it, sometimes two or three times. Then, as it starts to collapse, burn the whole bitch down, and cover your tracks.
Fifty years since the Detroit Riots. Maybe Rahm and company are hoping that BLM will burn this bitch down soon. After that, they can restart the scam. They can get all that sweet Federal Redevelopment and Rebuilding Money. They can loot billions again. Maybe two or three times if they play the racism angle right. And when its over, Chicago will look like Detroit. Rahm and the locusts won't care, they will be living fine in Florida or peacefully dead.
Rahm's banker buddies have already got theirs. They get their money upfront in the marketing and bond selling fees. They love things like refinancing the previous bonds. They get paid twice. Wouldn't you love that?
They don't care if the bonds go bust. They sold them to their Municipal Bonds Customers, and they got paid.
There may be 20 high achieving schools in the system. The rest produce functional illierates. And the only thing, THE ONLY THING that the Chicago Teachers Union really cares about is MONEY. Their willingness to strike over the refusal to pay their fair share of their own pensions is all the proof necessary to focus on their true lack of moral fiber. How much extra is spent every year to make the extra 7% payment. Add that up for the pas 31 years and see what astronomical amount it comes to. I hope Rainer never gives the city a penny!!
Looks to me like wrong people getting shot in Chicago . should be these crooked politicians.
But it is sooooo worth it.....
Remember when those CPS student beat up that poor teacher, and video recorded it?
https://youtu.be/DIMu_9AtwRM
29 CPS students brawl get arrested
https://youtu.be/BuO1MLw3JTk
But is against "Chicago values" to deport illegal aliens and to stop subsidizing their children with a free education, including breakfasts and lunches, all paid for by the taxpayers.
Without unchecked immigration, Chicago would actually be closing more of its public schools, not building new ones.
The most important time of day at the Chicago Public Schools is when the attendance is taken. The numbers are used to bilk the state of dollars based upon an attendance driven funding formula. This is why we must listen to all of the "Back To School" propaganda every September because the thieving pols and bureaucrats want those attendance dollars.
Sounds like a Ponzi scheme.
when does the stupidity ever end?
where in this world can you just keep borrowing and keep spending and keep digging a bigger hole and there is no repercussions??
i want to sign up for a credit card with those rules.............
Rahm doesn't mind playing fast and loose with CPS finances because just like Daley before him, the FAILURE MAYOR will be out of office, long gone, and drooling on shirt by the time the SHTF.
Detroit in a few years !
Damn! Liberal democrats make the worst deals possible, but what the hell, it's not their money. They don't have to pay off the debt.
It's a pattern. Obama made the worst, most expensive deals ever, to bankrupt America. The Clinton's sold their souls, and U.S. designed missile guidance systems and U.S. uranium, in their efforts to destroy America.
Obama sends "pallets" of U.S. and other currencies to the middle East to support their nuclear efforts, (to destroy us?)
The democrats only goal now is to stop President Trump from doing anything that is right for America. They must be stopped.
The criminal and illegal alien supporting liberal democrats are responsible for screwing up Illinois, Cook County, Chicago and your pension funds!
J.J.
I read the article twice because I thought I got it wrong the first time. $850 Million dollars in interest on a $500 million dollar loan..I literally gasped.
Leave this city as soon as you can with as much as you can. There's no future here
Sounds a lot like loading up 50 grand in credit card debt and then borrowing against your house to pay them off, and of course paying double the interest rate you otherwise would have for the mortgage, because it is a second mortgage. borrowing to pay off is always something I get a kick out of anyways, you aren't PAYING when you BORROW, kinda like you aren't SAVING when yer SPENDING.
Regardless, this is how Madagin has run this state for three decades, so why change it up now?
The world, as it has been designed, created and implemented, is the definition of "heads, you lose, tails, you lose".
All anyone can do is ride the edge of the coin while it's being flipped.
That is all we get.
The final bankruptcy for each is death, which may be believed to be not an escape from debts by some......though none have ever figured out a way to collect from the dead.
And, as it is appears from the perspective of those not yet dead, the dead are not compelled to give a shit, let alone two, about the impositions formerly endured prior to their departure.
This is the world as intended.
As a wise man once said......ride the wave......lest the wave ride you...
For those that don't carry a real estate tax escrow in their mortgage payment, the 2nd Half is due today and penalties start adding up at midnight.
And if you never read your Share the Wealth tax bill, please be reminded that about 54% of the total goes to Chicago Public Schools.
For me that equated to $3500 for this year for not using the perennial failing public education system.
But this:
"CPS is using the biggest chunk of the loan to reimburse itself for failed bond market deals the district previously covered with cash".
Just a little walking around money I guess.
They can't or refuse to pay their bills and obligations, tax the shit out of homeowners and still get loans !!!
Who the f*ck gets to do that?
You try and get a 6.75, 30 year mortgage with no down payment and a sub par credit score due to non-payment of debt.
Rahms Bankers get paid first that's for sure.
CPS should take advice from President The Donald on how to manage their money.
But they won't.
Anonymous said...
Another reason I send my kids to a private school. It isn't so deep in debt it will never dig it's way out. The City is collapsing around us.
8/01/2017 01:50:00 AM
I send my loved one to private school as well. We get the pleasure of paying for public and private education. We looked at the public school available to us and we just shook our heads, decided we would be even more poor and continue to pour our love and dollars into the little girl. It is worth it. She can read and write.
The Democratic way, politicians get paid, while the working people pay and pay.
(OT) This should be the cover of every newspaper tomorrow "Cook county president Toni is trying to kill poor people" The pop tax who she says is for "health" starts tomorrow throughout crook county even counts on sugary beverages. was at gas station this morning getting coffee the manager said starting tomorrow all cappuccino that comes from machine will have that tax also!
But the link card holders the "poor" will not have to pay that tax and if is for health of county residents as "crazy toni" says she obviously wants to make sure the poor can drink more pop and get that sugar in the body causing diabetes and cancers, in large quantities! A friend works for Pepsico international, he told me they will be monitoring the sales with most likely layoffs coming within a month! All the large pop trucks you see at the grocery stores will not be needed in crook county, watch the tax revenues drop quickly another failure from leaving demorats in charge!
Look around at the overweight people, so many obese, especially the poor look at the black and hispanic communities so many way over the limit, it is easy to see the diabetes types that will cost us the taxpayers billions in future health care costs, maybe tonis idea to kill the poor could remedy this situation right "crazy toni"!
This guy just found out about pop tax don't worry your not paying it:
https://www.youtube.com/watch?v=ZKAKnVW6-do
Anonymous Anonymous said...
Looks to me like wrong people getting shot in Chicago . should be these crooked politicians.
8/01/2017 06:04:00 AM
Look at what happened to the Republican congressman in Washington DC there are a lot of crazy people out there that are having things taken away from them it's a scary scenario!
THIS IS Demorat way for Chicago and Cook county, they have all followed Barrys following for the past 8 yrs. He tried to transform the USA into Socialism , read Rules for Radicals this is the Bible for Demorats. Their Idle is Saul Alinsky. I know, worked in Hyde Park in the 60's.
I can tell you where you can get a 6.75% 30 year mortgage with no down payment and a sub par credit score. Just be a Chicago Alderman and see the friendly bankers at Belmont Bank and Trust.
(OT) 4fer all on the porch wonder were any illegal invaders?
http://chicago.suntimes.com/news/4-wounded-in-humboldt-park-neighborhood-shooting/
Another reason I told my son to move to North Carolina and don't come back to this shithole called Chicago!
"Leave this city as soon as you can with as much as you can. There's no future here."
Amen, 8/01/2017 09:45:00 AM.
This should be adopted as a battle cry.
Our childrens wants 2 learn! The good Mayor wants to 'invest in Chicago's future leaders.' We also want tasty breakfast and lunches too!
And rahm says the pensions are all good,lol!
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