Improper Financing?
- If you could go to your bank for a loan offering to transfer ownership of your future income to make sure the bank got repaid, it would give you a lower rate. That would be reckless, however, and probably illegal.
But that's basically what Illinois recently authorized Chicago and other home rule municipalities to do. Hidden in the state's 756-page budget implementation bill is authorization for Illinois cities and towns to borrow a new way—by transferring to bondholders full ownership of future tax revenue that flows from the state to municipalities, which is an essential public asset.
Chicago is moving quickly toward using that authority for a $3 billion bond issue to be backed by conveying $660 million a year in city sales tax revenue for 40 years. Other municipalities likely will follow.
This sounds mysteriously like the Parking Meter deal where Daley got $1.15 billion upfront, promptly spent it all, and then retired as the finer details came to light that the "deal" had been massively undervalued - by billions of dollars - and that the 75 year agreement meant that everyone involved would be long dead and buried when the outraged citizens arrived with tar, feathers and rope.
It certainly looks like yet another "kicking the disaster down the road" deal.
It certainly looks like yet another "kicking the disaster down the road" deal.
Labels: money questions
posted by SCC at 12:02 AM
43 Comments:
Sounds like "Bowie Bonds" in 1997 and Eminem
in 2017 with his 'Slim Shady' stock. A fool and his
money are soon parted.
And just where is that $3 Billion going? This is just outrageous! When the city goes bankrupt, and it will, who will be first in line to get money. It won't be the city pension plans. All of the city assets will be already snatched up by bond holders. All of these fukking politicians should be put in front of firing squads. But they won't be. We are soooo fukked!
The Parking meter deal makes Al Capone look like a Church lady.
Chicago is run by crooks and thieves!
I hate this place!
borrow $3b and repay $26.4b? don't these morons use a calculator? so glad I escaped madiganistan... SMH
Of I read that right, Chicago trades 26.4 billion (with a B) to get 3 billion now. I don't understand the logic...which explains why I'm a retired cop, not a politician or a dimmocrat!
Reminds me of Goodfellas.... "Now the guy's got Paulie as a partner. Any problems, he goes to Paulie. Trouble with a bill, he can go to Paulie. Trouble with the cops, deliveries, Tommy, he can call Paulie. But now the guy's got to come up with Paulie's money every week. No matter what. Business bad? Fuck you, pay me. Oh, you had a fire? Fuck you, pay me. The place got hit by lightning, huh? Fuck you, pay me. Also, Paulie could do anything. Especially run up bills on the joint's credit. And why not? Nobody's gonna pay for it anyway. And as soon as the deliveries are made in the front door, you move the stuff out the back and sell it at a discount. You take a two hundred dollar case of booze and you sell it for a hundred. It doesn't matter. It's all profit. And then finally, when there's nothing left, when you can't borrow another buck from the bank or buy another case of booze, you bust the joint out. You light a match.
I'm 49 with no kids, if it gets me 40 yrs of pension I'm all for it.
(OT) Who is financing these terrorists?
ANTIFA’ WAGING CIVIL WAR ON NOVEMBER 4, ACCORDING TO RIGHT WING CONSPIRACY
http://www.newsweek.com/antifa-waging-civil-war-november-4-right-wing-conspiracy-theory-681219
The big question is is it fake news? Dishonest media? Or is it real? Just be prepared protect blue at all costs, the Democrats like it when people take the knee that is what they respect maybe we should take the knee!
Mayor Rahm is a master of the financial world and making financial deals.
WHERE DOES THE BUCK STOP? Not at the feet of these A-holes but with some poor bastards that haven't been born yet.
Typical Financial suicide which benefits the Wall Street types. It will turn out just like the mortgage scams that some made huge amounts of money on.
So we borrow $3B and pay back $26.4B. I've heard of paying a little interest but this is outrageous. I call bs. These inside bond reissue jobs should be investigated there's people making millions in bonuses for landing these deals. But hey it's only tax dollars. And don't forget police OT is the real problem!!!
I'll give them a buck fiddy for the future bag tax revenue.
it makes you think the whole government is one big ponzie scheme
40 years? At 660 mil? For 3 billion? Gee, I wish I could get interest like that on my IRA, but then I'm not a crooked fucking demmocommie that no doubt gets something back on the sly from this kind of "deal". Tar feathers and pitchforks is way too good for these bastards who come up with this shit.
Yet the public will continue to vote for the likes of Madigan, Burke, Hillary (who lost lol) and Rahm. Voters never cease to amaze me. This is why I started a business at age 32 and am leaving CPD at age 50. So many of you talk about staying to 63 lol. I literally LOL when I hear that and it's always the same excuse: "Well I got two kids and a wife and xyz...". I laugh as it's all the more reason to get another job in the private sector or start a biz. Oh and please guys/gals: Stay until 63. Don't draw on your pension early. Keep paying into for me as I start to draw at age 50 come June 2018 lol. Thanks.
Oh and I'm living on the beach in Costa Rica right now (On LOA) starting a new biz here so don't tell me you can't leave before 63 y.o. with kids. I'm raising my 6 year old here to escape the city and county and state. But like I said: stay til 63 guys ;-)
Such a deal I have for you, you won't believe.
Let me see if I've got this correct. State OWES billions they don't have so they BORROW more to use to payoff some of what is OWED. Sounds like a classic ponzie scheme to me. How is this even legal. State is going down the path of no return. Bankruptcy sure to follow. There goes any hope of all those pensions owed. City will follow with same results.
Morgan Stanley tripled their Chicago parking meter investment deal return IN 8 years... at expense of Chicago taxpayers
More corrupt Chicago democrats.. Crook County Board democrat commissioners ...looking to raise taxes by 90 Million, to help replace Taxwinkle's soda tax debacle
Shop away from Cook County,IL
>>>> Chicago is moving quickly toward using that authority for a $3 billion bond issue to be backed by conveying $660 million a year in city sales tax revenue for 40 years. <<<<
Uh.... does Tiny Dancer or anyone in his administration know how to multiply??
They're going to get $3,000,000,000 (billion dollars) but look at what Flaming Tutu is agreeing to pay: ......
----> $660,000,000 Million Dollars x 40 Years = .... (are ya ready kiddies) .... $26,400,000,000 -- that's $26 BILLION, 400 MILLION DOLLARS!!!
That's 880% MORE than the money the Nine-Digit-Midget is getting. There's Outfit & Mafia Loan Sharks sitting in prison for offering better deals.
This 'deal' makes the Parking Meter AND Skyway fiascos look like good bargains.
ps: Has anyone at a Bond Company thought of the possibility that Chicago's sales taxes be less over time due to the changing demographics. And worse, that in 40 years Chicago might not exist as is, and will be 'Detroit V2.0'.
@ Tired Liberterian -- Goodfellas is one of my all time favorites. And that scene you posted is friggen classic. Especially the repeating line: "Fuck you, pay me."
It's right up there with; 'You're a funny guy.'
(I might have to watch that movie again this afternoon)
Can someone clarify if deferred Comp is tied into the city's accounts? Or is that a rumor? If the city filed bankruptcy to avoid pension obligations, does that also effect nationwide?
Thanks
This tactic won't be kicking the can down the road. This will insure there is no road, no pensions and finally no chance for a future except for the thieving people who would push a plan like this! WHEN WILL THE PEOPLE DEMAND FISCAL RESPONSIBILITY AND A BALANCED BUDGET?
Hell as long as were dreaming when will they demand integrity and honesty from elected officials? When will they stop voting demo"RATS" into office?
Borrow 3 and pay back more than 24. I suppose most MSM reports think this is a great idea. Another reminder why most Americans no longer believe most MSM news reports, they're full of shit!
J.J.
But Police Pensions are the problem.
Right?
So... The old, sick, injured, having played by all
of society's rules Coppers, can fully expect to
get shit on and shoved to the back of the line by
Rahm al-Ghoul & Co. and given the double
hand-full of dick-all that equals no pension
and no healthcare?
But no one DARES talk about the generations
of catered-to constituencies being allowed to
subsist and thrive on the taxpayer teat?
The social contract is somehow in force for
those whose contribution is measurable only
in violence, grief, misery, shit, willful ignorance,
hatred of the rest of law abiding society for being
"normal" and dispair?
The Policeman gives up a sizeable portion of
his life and everyone thinks it's ok and politically
astute "strategy" to stiff him when he stands to
collect what's due to him?
Y'all ain't gonna like how he acts...
And just where is that $3 Billion going? This is just outrageous! When the city goes bankrupt, and it will, who will be first in line to get money. It won't be the city pension plans. All of the city assets will be already snatched up by bond holders. All of these fukking politicians should be put in front of firing squads. But they won't be. We are soooo fukked!
City is not going bankrupt. They can raise property taxes anytime they want for revenue Right now there is 20 BILLION dollars in upscale projects going on in this city. Big money does invest that kind of money in a failing city
That said, you are right about bond holders getting paid first. Try and buy the city or CPS bonds. I did and you can't get any when they are offered. Big money knows they are protected by the stipulations in the bond offerings prospectus. CPS at one point was offering about 8% interest
I'm 49 with no kids, if it gets me 40 yrs of pension I'm all for it.
10/18/2017 06:46:00 AM
You say this as if you matter, as if you expect to still be breathing in a year, let alone another 4 decades.
The only thing you have going for you is that no one will miss you when you've gone.
That is something.
This is a symptom, not the disease.
The (D)isease is (D)emocrat.
They are the enemy within.
Now, if the vast majority of the POLICE are not supporting the (D)emocrats, how have it be that the LEO unions DO expressly and financially do so and have done so for decades?
Maybe it is time to admit one's own can kicking, right along with other's can kicking, wouldn't ya say?
Want the buck, and bucks to stop? Well, STOMP on that can, instead of kicking it.
Are you seriously asking "Who's paying for it ?"
Easy answer. Soros's organizations are paying for it.
Very evident in St Louis recently.
They had bail bondsmen and lawyers waiting at the jail when the 300+ protesters got arrested. The they started recruiting younger protestors as they cannot be held.
For some unknown reason the whole thing did not get much media coverage.
Lawyers get paid first, then the bankers.
Same origination, application, processing, closing and title fees (where applicable) are collected up front.
Lawyers (private practice) devoted hundreds of compensated hours to draw up these agreements, so they were also paid in full.
It puts the lotion in the basket or it gets the hose again.
Buffalo Rahm strikes again.
Margaret Thatcher — 'The problem with socialism is that you eventually run out of other people's money.'
Chicago is out of money.
The jokes is on the bondholders.
After everyone with any money, and most of the businesses leave Crook County, how much sales tax will Chicago collect?
Just in case he does not get re-elected, he will definitely get a job with a big wall street type firm. He is paying them now.
If I buy any of those bonds, I will put them next to my Venezuelan Government Bonds.
So where does he get the $$$ he needs for next years budget?
Meter schmeeter....has everyone forgotten the 1 billion dollar Skyway Deal? Sold off to a Spanish investment group who have since sold it to someone else for a profit. The city was supposed to put 500 million clams into an interest bearing account and keep it for ‘Emergency.’
Are we there yet? You know ...a place of Emergency. Show me the Money!
What you're not understanding is that the bondholders get repaid within five years. This city is not going under in less than 5 years. Everything Beyond five years is strictly profit even in bankruptcy they would receive something.
i see a shortfall of 660m coming out of the twerps piehole very soon.
What's all the fuss? Not to worry, the Amazon deal will flow money into the city coffers. Don't you remember how much the city made off the olympics? Wait, what....
10/18/2017 12:34:00 PM
Anonymous Anonymous said...
If I buy any of those bonds, I will put them next to my Venezuelan Government Bonds.
See your improving you. Ought one bad bond and now you bought a good bond
Your financial IQ is improving
Anonymous Anonymous said...
So where does he get the $$$ he needs for next years budget?
10/18/2017 02:24:00 PM
Property taxes, additional fees and taxes, plus could sell off some properties
Got a question. Is it legal for a privte company to issue parking tickets on public property? Do they have the authority? I mean a private citizen can not do this, so why can a privte company?
Can some please advise?
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