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l****z
发帖数: 29846 | 1 Moody's Cuts Chicago Bond Rating to Junk; City Faces $2.2 Billion in Various
Termination Fees; Irresponsible to Tell the Truth
The shockingly bad fiscal health of Chicago just got a lot worse. Not only
were Chicago Teachers "Insulted by a 7% Pay Cut Offer", the Illinois Supreme
Court ruled Illinois' 2013 pension reform is unconstitutional.
Moody's Cuts Chicago Bond Rating to Junk
As a result of the Supreme Court ruling, Illinois' already horrendously
underfunded pension plans are even more underfunded.
In a decision today, citing pension analysis, Chicago Rating Cut to Junk by
Moody’s.
Chicago had its credit rating cut to junk by Moody’s Investors Service
after the Illinois Supreme Court’s rejection of a state pension-overhaul
plan reduced the city’s options for fixing its own underfunded system.
The two-level downgrade to Ba1 affects $8.1 billion of general
obligations, which were already the lowest-rated among the 90 biggest U.S.
cities, excluding Detroit. The outlook is still negative. Moody’s has
dropped the city seven levels since July 2013.
The reduction to the highest level of junk “incorporates expected
growth in the city’s highly elevated unfunded pension liabilities,” Moody
’s said Tuesday. After the May 8 court ruling, “we believe that the city’
s options for curbing growth in its own unfunded pension liabilities have
narrowed considerably.”
The deterioration in the credit standing of the third-most-populous U.S.
city underscores how pension promises are squeezing the finances of states
and localities nationwide. Moody’s downgrade compounds Chicago’s fiscal
struggles: its counterparties can immediately demand as much as $2.2 billion
in accelerated principal, accrued interest and termination fees, New York-
based Moody’s said in the report.
The company’s decision may raise borrowing costs in the $3.6 trillion
municipal market: The city of 2.7 million was planning to issue about $383
million of bonds as soon as next week, data compiled by Bloomberg show. Some
investors had already deemed its bonds speculative grade.
“While Chicago’s financial crisis is very real and at our doorsteps,
today’s irresponsible decision by Moody’s to downgrade the city’s credit
by two steps goes far beyond that reality,” Mayor Rahm Emanuel said in a
statement.
Irresponsible to Tell the Truth
Apparently it's irresponsible to tell the truth: Chicago is broke and its
pension system is insolvent.
The Chicago Board of Education (CBOE) is already on the hook for $600
million in various termination fees when the CBOE debt was downgraded. Now
the city itself is junk, and rightfully so.
If Emanuel disagrees, then what are his ideas to fix the problem?
Oh, I remember, Emanuel wants the state to bail out the CBOE.
Here's a question I keep asking: How is a state that has a $9 Billion Budget
Deficit Hole going to bail out a single school district that is $1.5
billion in the hole?
Want another Emanuel idea? If so I have one: Emanuel hopeful Chicago pension
reforms will survive even though state's didn't.
The “handwriting is on the wall” for Chicago’s plan to save two of
four city employee pension funds, but Mayor Rahm Emanuel didn’t want to see
it Friday.
Hours after the Illinois Supreme Court unanimously overturned state
pension reforms, Emanuel argued that his plan to raise employee
contributions by 29 percent and sharply reduce cost-of-living benefits to
save the Municipal Employees and Laborers pension funds stands a better
chance of survival.
He refused to discuss the “catastrophic outcome” that awaits Chicago
if he’s wrong.
“Options for saving the defined benefit plans are now clearly limited.
But a constitutional amendment to clarify what future benefits can be
changed is definitely in order, as is taxing retirement income and other
changes to benefit state and local government,” said Civic Federation
President Laurence Msall.
At the earliest, the Illinois General Assembly could put a
constitutional amendment on the ballot in November 2016. But even if it
passes, it would affect only future retirees.
In the meantime, Msall said Emanuel should get to work with the new City
Council on a cost-cutting and revenue-raising plan to fund pensions without
jeopardizing essential services.
The combined, $30 billion pension crisis at the city and public schools
has already dropped the city’s bond rating to just two levels above junk
status.
Emanuel's Backup Plan?
Emanuel does not have a backup plan. I do.
On May 8, and in regards to the Illinois Supreme Court ruling, I stated "
Today's ruling more than ever shows the need to pass a bankruptcy law."
And the state as a whole needs a constitutional amendment to allow pension
cuts even if that only affects decisions going forward.
Apparently Moody's agrees. | d****n
发帖数: 10034 | 2 芝加哥是最好的城市—男护士
Various
Supreme
by
【在 l****z 的大作中提到】
: Moody's Cuts Chicago Bond Rating to Junk; City Faces $2.2 Billion in Various
: Termination Fees; Irresponsible to Tell the Truth
: The shockingly bad fiscal health of Chicago just got a lot worse. Not only
: were Chicago Teachers "Insulted by a 7% Pay Cut Offer", the Illinois Supreme
: Court ruled Illinois' 2013 pension reform is unconstitutional.
: Moody's Cuts Chicago Bond Rating to Junk
: As a result of the Supreme Court ruling, Illinois' already horrendously
: underfunded pension plans are even more underfunded.
: In a decision today, citing pension analysis, Chicago Rating Cut to Junk by
: Moody’s.
| T*********I
发帖数: 10729 | | s*********e
发帖数: 1814 | 4 其实并不好。我们期望的是优胜劣汰，让那些左逼意识到自己的错误。
实际上发生的更可能是，这些城市破产，居民移到本来不左的地方，依然投给左派政党
。。。 | C*******h
发帖数: 6095 | 5 我们就不要再幻想左逼会有一天清醒好吧？很多左逼即使知道这些做法是错误的还是要
坚持，因为它们只管自己能不能从中获利，怎么会管美国的死活。所以说这些左逼都是
卖国贼一点不冤枉它们。
【在 s*********e 的大作中提到】
: 其实并不好。我们期望的是优胜劣汰，让那些左逼意识到自己的错误。
: 实际上发生的更可能是，这些城市破产，居民移到本来不左的地方，依然投给左派政党
: 。。。
| p*u
发帖数: 2454 | 6 not surprising @ all...
Various
Supreme
by
【在 l****z 的大作中提到】
: Moody's Cuts Chicago Bond Rating to Junk; City Faces $2.2 Billion in Various
: Termination Fees; Irresponsible to Tell the Truth
: The shockingly bad fiscal health of Chicago just got a lot worse. Not only
: were Chicago Teachers "Insulted by a 7% Pay Cut Offer", the Illinois Supreme
: Court ruled Illinois' 2013 pension reform is unconstitutional.
: Moody's Cuts Chicago Bond Rating to Junk
: As a result of the Supreme Court ruling, Illinois' already horrendously
: underfunded pension plans are even more underfunded.
: In a decision today, citing pension analysis, Chicago Rating Cut to Junk by
: Moody’s.
| T*********I
发帖数: 10729 | 7 同意。
所以中间，哪怕偏左的群体，应该有sound judgement，认清左派毁灭美国，毁灭你我
下一代的未来的凄凉后果，反对左倾路线。
【在 C*******h 的大作中提到】
: 我们就不要再幻想左逼会有一天清醒好吧？很多左逼即使知道这些做法是错误的还是要
: 坚持，因为它们只管自己能不能从中获利，怎么会管美国的死活。所以说这些左逼都是
: 卖国贼一点不冤枉它们。
| i******b
发帖数: 1780 | | t*c
发帖数: 8291 | 9 这个我觉得是不可能的。因为太多的人只顾自己了，根本没意愿来管社会，
即使有人大声疾呼，他们只会把他当傻子疯子，觉得annoying.
所以呢，不属于左派的人，大部分属于麻木的人，少部分属于知道情况但等着别人努力
改变，自己骂骂就好了。只有很少很少一部分人，才会既清醒得意识到危险，又能够行
动出来，企图改变左派潮流。
看我昨天在几个版批评三番版主版副专制，滥用权力，绝大部分三番版的本地人即使看
到了也don't care. 只有不到十个人去三番版批评版主版副。这几个人里，一大半还是
跟三番毫无关系的过路人。
【在 T*********I 的大作中提到】
: 同意。
: 所以中间，哪怕偏左的群体，应该有sound judgement，认清左派毁灭美国，毁灭你我
: 下一代的未来的凄凉后果，反对左倾路线。
| j*****v
发帖数: 7717 | 10 版主要幹的就是刪幾個廣告貼，無他。
三番那幾個如果真把版主當事業幹，真好笑，太猥瑣了
【在 t*c 的大作中提到】
: 这个我觉得是不可能的。因为太多的人只顾自己了，根本没意愿来管社会，
: 即使有人大声疾呼，他们只会把他当傻子疯子，觉得annoying.
: 所以呢，不属于左派的人，大部分属于麻木的人，少部分属于知道情况但等着别人努力
: 改变，自己骂骂就好了。只有很少很少一部分人，才会既清醒得意识到危险，又能够行
: 动出来，企图改变左派潮流。
: 看我昨天在几个版批评三番版主版副专制，滥用权力，绝大部分三番版的本地人即使看
: 到了也don't care. 只有不到十个人去三番版批评版主版副。这几个人里，一大半还是
: 跟三番毫无关系的过路人。
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