Another Dreary Prediction
Zero Hedge is doom and gloom a lot. This hits close to home:
- While the federal government is slowly careening toward permanent, fiscal disaster, many state governments (which don’t have the power of the printing press) are already staring into the abyss…
Take Illinois, for example. It’s the most broke state in the US with nearly $250 billion in debt. And it only brings in enough in taxes each year to cover 92% of its expenses… so the problem is getting worse.
Good thing Rahm “you never want a serious crisis to go to waste” Emmanuel is the current Mayor of Chicago. You may remember, the above quote was from Rahm’s days as Obama’s Chief of Staff, as told to the Wall Street Journalduring the depths of the Great Financial Crisis…
What followed was the greatest monetary experiment known to man.
The "experiment" is outlined in the linked article with all sorts of references and sub-links to stuff. It's not a pretty picture.
Labels: money questions
posted by SCC at 12:02 AM
57 Comments:
Rham has gotta make his connected friends at least 8% compounded annually before getting shit canned as mayor... but quick everyone, tell your family members they have a future pension with a city job... or do the cop shit and burn out your spirit if you have one by working shitholes, in 20 years you might be able to retire with out health care if they don’t require a higher age like 65 or 67.
My guess is in a few years CPD is gonna do away with age limits... you will see guys, girls, fill in blank or pick your genders, who are 45 years old coming on the job. But at least CPD will be more inclusive.
Who do I talk to, to get a office job — I am willing to come to work with an empty gun; I am scared to confront anyone on the street, scared of the wind too— is the job worth doing if I am gonna be fucked out of a pension in retirement.
Years ago I set up an annuity fund with prudential... it also an insurance fund that pays 2 mil if I die, or pays me about 90k in retirement. Just gotta make it to retirement
I hope these assholes don't ever settle this and TRUMP keeps the government shut down which will prove we really don't need about 80% of these people with paychecks and no jobs of any significance!!!
I am so tired of being here! Six more years to go! We have been looking at property in another State!
We need alaw passed that any state that declares bankruptcy and expects a federal government bailout goes back to territorial status. The feds appoint a governor/ bankruptcy manager for a three year term with the ability to cut and restructure the state government departments. The citizens can elect local representatives, and a constitutional convention delegates.
They cannot elect their reps or governor, because obviously they fucked up things with their previous votes.
Do you think these Democrats care about your pensions? You do nothing for them, you don't bring in the vote. The City's vendors will get paid because they donate large amounts of money to the party. There is money for the great unwashed though. NYC Mayor Bill de Blaiso (D) announce that was giving free healthcare to 600,000 people in NYC. And of those, 300,000 are illegal aliens who should not be here to begin with. In California, newly elected Governor Gavin Newsome (D) is announcing free healthcare to all illegal aliens in the state. He said he welcomes ALL to the sanctuary State of California. This will be like a magnet drawing more illegals. The three leading states for the middle class leaving are California. New York and Illinois. Not only is free healthcare for these illegals a financial burden on the taxpayers but your wait to see a doctor has now been extended by the demand for medical care. And on the national scene the Democrats want open borders because they need the new immigrants to replace the middle class voters in jobs and services and because the Democratic Party has moved so far to the left they have lost those middle class, center of the road voters. So they will reward these people with all kinds of social programs in order to use them. Also in 2017 the US gave out about 40 billion to foreign countries. There is money but it's just not for you.
I retired 5 years ago and I can see now how quickly the funds are going down. It’s a matter of time
most offenders don't bother to read Zero Hedge,
they live in the moment and don't plan for the
future
most offenders don't bother to read Zero Hedge,
they live in the moment and don't plan for the
future
You mean "Officers"?
The entitlements are what is really going to kill this country off.
The Daley-Emanuel death spiral continues.
The sad part is you guys in general seem to hate the city, hate the politics, hate the corruption, hate the scumbags and the oversight, yet you are taking huge IOUs from your employer, a credit junkie, as a major component of your compensation. Crazy.
Democrat Legacy.
You mean "Officers"?
1/10/2019 04:49:00 AM
It's pensions.
The liberal progressive scum like the Chicago progressive caucus ideas headed by waguespack and arena are what we are looking towards in Chicago. They are not interested in tax paying citizens. They are only interested in the needs of the cop haters, illegals, felons, dope addicts, phony community activists and anyone else who refuses to work. Their hero is Ocasio-Cortez as they constantly quote her insane ideas. These people must be stopped immediately.
You can bet that the pension funds of the legislators, mayors, alderman, judges and tollway management are all paid up and secured. There are rules on the books that state money is "REQUIRED" to be paid to "ALL" the pensions, yet the coppers and firefighters who pay 10% of salary into the pensions get no money for years at a time, politicians exert authority over the funds steering them to low paying or "crooked" investments all while the "dirty thieving politicians" steal tomorrow from hard working dedicated civil servants! Then a guy like rahmbo comes in and further decimates their legacy and benefits and then he wonders "WHY?" no one wants to be the police and crime is out of control....Doesn't help when you cut deals for your own little dope smoker!!!
Can someone explain how these politicians can use tax money to fund programs for not only non-citizens but illegal immigrants who have come to this country 'UN-FUCKING-LAWFULLY!!! These mother-fuckers have not stolen enough, now they are giving money away? Why is there a constitution and laws if these mother-fuckers can bankrupt entire states and still find money to insure illegal aliens at the same time not funding pensions required by law!!! Off with their heads until red rivers run deep!!!
1222am you're an idiot. People think your job isn't needed either and that you're paid too much. Maybe they should shut your direct deposit down.
Pensions? Don't talk about pensions. You kidding me? Pensions? I just hope we can get another paycheck.
Been saying this a longtime the pension fund the contributions by the city must be job #1. The phones should be burning up with FOP,and the pension board of directors, your alderman,the city treasurer all of them, i personally have been calling and not getting results, the squeaky wheel will get the grease this must be kept front and center. rahm rapidly took away our retirees health care and laughed about it.
Again and again who signed off at our pension board and gave daleys nephew and his friend dv urban investments 60 million of our pension money and they lost it and these 2 kept over 9 million for their personal use! Why no forensic audit? Why no federal investigation? This is the money that the coppers hard working Blue shirts, who toiled and paid many prices from injuries, to some losing their lives freely given away! Who signed off??
This union cannot even hire a spokesman to speak out about all the media lies, the distortions, if the media will not allow equal time fine, the spokesman could blog it as long as it is in the interests of the hardworking coppers! Where is the union hierarchy? sitting behind the desks? Kevin you most of all the president come on take charge push yourself from the buffet table,no contract how many years? No talk of securing the pension? Whatever happened to Greg Bella? So quiet! Either step up, or please step aside, as Ric flair said "To be the man you have beat the man," and you gentlemen have beaten nothing, we need strong leadership not people that play hide and seek!
From the minute carpetbagger Rahm set foot in Chicago to run for mayor he never, ever, had any intention of fulfilling the city’s obligation to our pension fund.
All he’s done is flap his gums, expel hot air and feverishly kick the can further down the road for somebody else to deal with.
Rahm: remember that karma is a bitch.
thank Illinois - you clowns have not passed a balanced budget in how many years? You think the diabetic billionaire is going to fix that?
Rahm was supposed to pay somewhere around an extra $600 M toward police/fire pensions per year if I am not mistaken (according to the Illinois law passed by Potato -Head Quinn), but then widdled it down to be $220M less per year. In 4 years about $1B less was put into the police/fire pensions. Not sure what the city contribution is currently.
Why did JB spend so much $$$ to become governor? Why are there 15 candidates for mayor? Why is Rahm trying to push his pension plan before he's shown the door?
Because the underwriting fees from refinancing all this debt are enormous! The pols are drooling over the kickbacks brokers will pay them. Because, for the Illinois political class, DEBT is GOOD.
Banking on federal money I.e. obama bucks to get a lot of funding for pork projects that seem never ending.
Just in Chicago with ShanksRahm Deals with Dem transportation leadership of past, gave no limit funding for the O’Hare Airport expansion, the CTA Red/Green line rehabs and still the mother of all... deep pockets Deep Tunnel.
Illinois roads are shit and in constant reconfiguration with some of the highest tolls to nowhere.
Rahm had recently gifted CTA $5 mil for traffic studies to reduce travel times and that was probably only a 20% down payment.
CTA says ridership is down yet they still take in city money - did the Red Line need expansion and a new hub, or Jeff Park Blue Line?
No.
All the while every donor contractor is making money hand over fist.
Rahm isn’t finished, his Eloin MuskRat Tunnel exploratory Team is still being paid, want to bet that JB Toilets is willing to go along with State transportation allocations before RahmShit leaves in May?
For the record, the cash strapped Los Angeles MuskRatTunnel is well overbudget for its 1 mile of digging and it’s projected to be another 13 years until full completion.
The LA mayor and gov promised a low budget and it would be up and running in 2020.
Meanwhile Sterling Bay wants $600 mil in TIF to build housing.
No jobs outlook and they’re not looking to cut Sanctuary entitlements.
Chicago bankruptcy is only a matter of time, 5 to 10 years max. There is no other way. When that happens everything is on the table with no guarantees for anyone or anything. Union contracts, pensions, everything starts from the beginning. And, Chicago will not be the only one to do this. The states cannot declare bankruptcy because of the US Constitution. Chicago cannot do it unless granted authority from the state. But, it will happen
My guess. The long term retirement funding plan is the money the responsible adults saved for their own retirement.
Hope you all link to the article. If you think your all going to get that golden goose pension read the article and rethink your future. If you got 20 in get out now if you got 10 or Fifteen in and are under 40 get out now. Yes walk away because in a few years the bankruptcy will render your property values and pension hopes useless. Under ten run away now, your still young and can get on and qualify for a full pension in another state where you might be fully appreciated. Sad reality you all see to ignore is that city and state are broke and getting broker. So get a viable plan B and execute now. Cost of living away from Chicago is dramatically less plus you don't have to pay for private schools to get your children educated. That means a job paying 20-25k less will put you ahead.
I predict that blow job prickster is gonna hand out that cannabis licenses to his family, associates and people who are owed favors. How else is he gonna make up for that 150 plus million he lost on the election. That's the only way and it's legal.
WELL IT'S UNFORTUNATE
BUT REALITY
in about 10 years approx 30% of cpd pensioners will be pushing up daisies
end that gold braid and pensions for MERIT Ranks and our pension will be in the black
30% of all ranks merit , means they would receive a code 9161 pension
90% of captains ,exempts , command staff would also receive a code 9161 pension
think about that for a minute
it's the abuse of incompetent people receiving large $$$$$$ at pension time
For your consideration: http://sultanknish.blogspot.com/2019/01/escape-from-portland.html
The only way is to change the state Constitution so they can cut the pensions tough fight, that or bankruptcy, police and fire might be better off in the hands of a federal judge than the politicians
When discussing the bonds, Rahm did mention he supports legalizing marijuana and bringing casinos back to Chicago.
So if the pensions don’t work out, we’ve always got pot and gambling to restore our country to the glory days.
Oooh, Chicago, city of tattoo parlors, nail salons, casinos and dope dens....aspiring to be Gary, IN
You can bet that the pension funds of the legislators, mayors, alderman, judges and tollway management are all paid up and secured.
The state runs 6 pension funds.
Illinois State Employees Retirement System 36% funded
Illinois General Assembly Retirement System 15% funded
Illinois Judges Retirement System 37% funded
Illinois Teachers Retirement System 41% funded
Illinois University Retirement System 43% funded
Illinois Municipal Retirement Fund 87% funded
IMRF is funded entirely by local governments who employ the workers covered. TRS should be as well, but for some reason the state has agreed to pay a big chunk of the costs.
1/10/2019 02:25:00 PM
Anonymous Anonymous said...
Hope you all link to the article. If you think your all going to get that golden goose pension read the article and rethink your future. If you got 20 in get out now if you got 10 or Fifteen in and are under 40 get out now. Yes walk away because in a few years the bankruptcy will render your property values and pension hopes useless. Under ten run away now, your still young and can get on and qualify for a full pension in another state where you might be fully appreciated. Sad reality you all see to ignore is that city and state are broke and getting broker. So get a viable plan B and execute now. Cost of living away from Chicago is dramatically less plus you don't have to pay for private schools to get your children educated. That means a job paying 20-25k less will put you ahead.
1/10/2019 02:27:00 PM
When did you run and get out? And where did you go?
Anonymous Anonymous said...
Why did JB spend so much $$$ to become governor? Why are there 15 candidates for mayor? Why is Rahm trying to push his pension plan before he's shown the door?
Because the underwriting fees from refinancing all this debt are enormous! The pols are drooling over the kickbacks brokers will pay them. Because, for the Illinois political class, DEBT is GOOD.
Not a fan of JB , but I don’t think he had to become the governor to make all this money. He was doing pretty good before the election
Anonymous Anonymous said...
I retired 5 years ago and I can see now how quickly the funds are going down. It’s a matter of time
1/10/2019 03:45:00 AM
You mean like in 2017 when it increased by 257.1 million
Anonymous Anonymous said...
I retired 5 years ago and I can see now how quickly the funds are going down. It’s a matter of time
1/10/2019 03:45:00 AM
From our pensions annual report
In 2014 funds value was 3,265,200,554
Ending 2017 value was. 2,865,018,804
In 4 years loss off 400,182,750. 100 million a year
Not good but fund still has 2.865 BILLION in it
City adding mandated funds plus additional new hires paying in will help
In 2009 I stated here that the Pension Fund would be close to bankrupt in 2022. I stand by my statement.
old retired guy
Never any mention of the welfare or SNAP?LINK running out of money!!
This is what you get with more people voting than paying taxes! Keep voting democrat for more of the shit sandwich!!
We get paid decently...
Save as much as one can...
Its not how much one makes but rather how much one saves..
We Are All Replaceable
When did you run and get out? And where did you go?
1/10/2019 05:43:00 PM
I'm guessing Hammond Indiana trailer courts.
Anonymous Anonymous said...
"You can bet that the pension funds of the legislators, mayors, alderman, judges and tollway management are all paid up and secured. There are rules on the books that state money is "REQUIRED" to be paid to "ALL" the pensions, yet the coppers and firefighters who pay 10% of salary into the pensions get no money for years at a time, politicians exert authority over the funds steering them to low paying or "crooked" investments all while the "dirty thieving politicians" steal tomorrow from hard working dedicated civil servants! Then a guy like rahmbo comes in and further decimates their legacy and benefits and then he wonders "WHY?" no one wants to be the police and crime is out of control....Doesn't help when you cut deals for your own little dope smoker!!!
1/10/2019 08:20:00 AM"
I understand your concern, but you are wrong about funding levels for legislatures/politicians. They are the lowest funded of all the Illinois pension systems.
Chicago is broke. We're going to elect another fool that won't fix it. Chicago is doomed. More and more taxes, never a cut in the growth of government. Have you figured out how you're going to pay ehte ever increasing taxes to live here when you pension is slashed?
Illinois is broke. We just elected another fool that won't take the necessary measures to save the state until the disaster overwhelms us. Taxpayers are leaving at an alarming rate.
The federal government is broke. We just elected a democrat house and the problem is so bad the usually thrifty republicans couldn't get make a dent in the budget deficit. The United States in in a death spiral. We will be Greece in 10 or 15 years. But hey, we have illegals that we have to take care of, has anyone asked what jobs they'll have in 10 or 15 years from now to support themselves? Your IRA's and deferred comp will be seized by the government and you'll be given a US government annuity bond. Have you figured out how you're going to survive when social security checks start getting reduced? We won't do anything until the whole problem is unmanageable. Our representatives won't say no to any spending. We're done.
We have totally screwed the pooch and the bill is coming due very soon. Keep voting for people that have no intention of reducing spending. Then cry and say it's Trumps fault. No, it's your fault, keep electing people like that idiot Ocasio that want to tax you to death and spend money we will never have enough of on new programs.
Here's the bottom line. Chgo has to pay its bondholders. And Chgo has to pay its pensions. Unfortunately, it only has the money to do one but not both. What to do?
I think CPD/FOP needs to step up and proactively put a proposal on the table. And yes, that's going to mean cuts.
But wait, you say. Our benefits "may not be diminished or impaired" you say?
News flash, that constitutional guaranty don't mean jack if that city aint got no money.
Better to start the process now than wait for the day Mayor Pricktinkle slides YOU a proposal and says "either you take what I am offering you or the city files for bankruptcy".
Oh, and don't forget, the Chgo Police pension fund is projected to run out of money in 2021.
Are you going to wait until you start getting IOU's instead of checks in the mail?
Someone needs to connect-the-dots re: Sterling Bay (ie: Crown Family money-developer) and Rahm. The Sterling Bay's Lincoln Yards project's planning approvals appear to have extreme urgency, to ensure generous (ie: contrary to best interests of Chicago tax-payers and neighborhood residents) entitlements are locked-in and TIF dollars confirmed BEFORE the Rahmster leaves office. This done-deal smells of usual corruption and "big-guys" cronyism, and yet only Trib's limp-wristed architectural reviewer Blair Kamin seems to be covering story (when he's not trumpeting girl-architect Jeannie Gang). The voters of Chicago are sheep. We deserve what we get. The smarter folks are planning their exit from city/county/state, because this financial crisis is a lost cause here.
The problem is that democrats manufacture the crisis in order to further their leftist agenda.
How much longer can "they" keep recycling the same bath water????
We have totally screwed the pooch and the bill is coming due very soon. Keep voting for people that have no intention of reducing spending. Then cry and say it's Trumps fault. No, it's your fault, keep electing people like that idiot Ocasio that want to tax you to death and spend money we will never have enough of on new programs.
1/11/2019 06:41:00 AM
OK political genius,name the candidate that a voter registered in Chicago should vote for. If you think Rauner was a good choice you weren't paying attention. Illinois is screwed for sure and you're not voting your way out of that.
Anonymous said...
Here's the bottom line. Chgo has to pay its bondholders. And Chgo has to pay its pensions. Unfortunately, it only has the money to do one but not both. What to do?
I think CPD/FOP needs to step up and proactively put a proposal on the table. And yes, that's going to mean cuts.
But wait, you say. Our benefits "may not be diminished or impaired" you say?
News flash, that constitutional guaranty don't mean jack if that city aint got no money.
Better to start the process now than wait for the day Mayor Pricktinkle slides YOU a proposal and says "either you take what I am offering you or the city files for bankruptcy".
Oh, and don't forget, the Chgo Police pension fund is projected to run out of money in 2021.
Are you going to wait until you start getting IOU's instead of checks in the mail?
1/11/2019 07:46:00 AM
Stay off the blog Rahm. Oh, and G.F.Y. too.
The federal government is broke. We just elected a democrat house and the problem is so bad the usually thrifty republicans couldn't get make a dent in the budget deficit. The United States in in a death spiral. We will be Greece in 10 or 15 years. But hey, we have illegals that we have to take care of, has anyone asked what jobs they'll have in 10 or 15 years from now to support themselves? Your IRA's and deferred comp will be seized by the government and you'll be given a US government annuity bond. Have you figured out how you're going to survive when social security checks start getting reduced? We won't do anything until the whole problem is unmanageable. Our representatives won't say no to any spending. We're done.
We will survive. In 1984 I heard the same thing. Old timers said I was a fool to put money into deferred comp and that the city would take the money. Needed my head examined. Money was in city name and I would never see it
Now 35 years later I’m retired and enjoying my deferred, The million I accumulated
As far as the bankruptcy, the government seizing it, etc that doesn’t happen overnight. As soon as there are any discussions or talk of any bills , I’ll pick up the phone and withdrawn all the funds that day.
Blogger john said...
In 2009 I stated here that the Pension Fund would be close to bankrupt in 2022. I stand by my statement.
old retired guy
1/10/2019 07:25:00 PM
Could happen John. All the fund has to do is lose a billion dollars a year for the next 3 years. You do realize a billion is a million more than 999 million
Cap Pensions at $100,000 look at that disgusting top pension list on the BGA site people getting half a million pensions with cost of living increases.
Anonymous said...
The entitlements are what is really going to kill this country off.
1/10/2019 05:07:00 AM
It's not an entitlement I paid into it my whole life!
We spend over $200 Billion a year on services to Illegal Aliens but no money to bailout earned pensions!
"We will survive. In 1984 I heard the same thing. Old timers said I was a fool to put money into deferred comp and that the city would take the money. Needed my head examined. Money was in city name and I would never see it"
I actually listened to those idiots as a naive new guy.Man,I missed a good 4 years right at the start when I could have been maxing out before I figured it out.
To the individual who commented about the Pension Fund. How much of that fund is invested in equities? Say 50%-- 2.5 billion- market is down about 12% since last year- so 300 million down. Now the bond market- not doing good either and most pension funds need yields for the outflow of funds to the annuitants- bond market not doing well either, not too bad, but not great. Now other investments? So since Oct or so- Pension Fund is down 200- 250 million unless completely hedged.
By the way- I do know what a billion dollars represents. Look at the draw downs during 1987- 2000- 2008.
old retired guy
The plan appears to be for local units of government to borrow money to cover as much of their pension obligations as possible, then Madigan can write a bill allowing local units of government to declare bankruptcy. The bonds become worthless paper and whatever they were not able to borrow comes out of retiree benefits.
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