After four years under firmer Obama Chief of Staff Rahm Emanuel, Chicago has run up an absolute mountain of debt, and is among the ranks of cities that could easily go bankrupt in the near future.
So naturally, inveterate democrat Chicago voters appear likely to go the Greek route, and kick the physical can down the road even further, appearing to favor someone even further to the left:
Three weeks remain before the April 7 runoff between Emanuel and Jesus “Chuy” Garcia, a Cook County commissioner and fellow Democrat whose candidacy is the vehicle for grievances against the mayor and his efforts to steer the city away from insolvency. Chicago has $20 billion in unfunded pension liabilities, a school system deep in deficit and a credit rating dropping toward junk. It’s in danger of being overwhelmed by debt unless it embraces onerous solutions that probably would include retirement benefit cuts and tax increases.
“I don’t think I’ve ever seen such financial uncertainty and so many moving parts all going on at once, and no one wanting to blink first by saying what he’s going to do about it,” said Donald Haider, a former Chicago finance director who ran for mayor in 1987.
Of course, they have to walk a very fine line; essentially, both have to campaign on who’s willing to be the most brazen about waiting for a federal bailout, without actually saying it.
The coming headline in the Chicago Tribune: “Congress to Chicago: Drop Dead.”
In Rahm’s defense, Illinois’ constitution bans reducing retirement benefits once they’re promised. That’s not to say that the state of Illinois hasn’t been run by and for crooks for decades at the very least (and I should know, I lived there for a while). It’s not like the machine politicians in Chicago-land haven’t been over-promising and under-funding on retirements for their public employee union cronies decades now. And it’s not like Chicago hasn’t already been selling off stuff like the tollways to get money to pay off today’s expenses.
But it’s at the state level where this could be quite entertaining as it develops. There’s tension between Federal bankruptcy law and the Illinois constitution, but Federal law will win if Chicago goes under. There’s no route for bankruptcy for Illinois under Federal law, however, and the state constitution prevents changes in pensions. This could get pretty interesting once Illinois falls to junk status and interest rates rise, since at that point Illinois will be unable to borrow to do anything because the interest rate will be so high.
I’d say it’s a shame that this is happening to Illinois, but I’d be lying. I lived there and all I can say is that it couldn’t happen to a more deserving and corrupt place.
I’m watching what’s happening down in Illinois with interest because my son goes to college down there, but in the western part of the state. Downstate Illinois isn’t appreciably different from Iowa or Indiana, but since it’s in the same sinking boat as Chicagoland, there’s real fear about what’s going to happen.
It is a sad state of affairs when Rahm is the BEST of your choices.
Just to think my daughter is goiung to be at UIC next year.
Chicago is about 1/3 Hispanic. I wonder if that comes into play. People who want things from the gov’t much differently than we do.
“The coming headline in the Chicago Tribune: “Congress to Chicago: Drop Dead.””
Nerdbert: Based on the Democrat Party Dominated ‘Creative Class’ in Hollywood releasing the now 7th installment of the ‘Fast & Furious’ franchise and planned female ‘re-boot’ of ‘Ghostbusters’ (the 3rd or is it 4th release), it would not shock me that the Democrat Party Dominated News Media Culture would do exactly that. Maybe they’ll have Pharrell Williams write the theme music.
Chicago is like Detroit in more than you might know. A large percentage of the city’s middle-class are public employees. When taxes start to rise, they pick up their pensions and head for the ‘burbs, which leaves less people to foot the bill. It’s a vicious circle that finally ends when everyone but the highest of the high along Lake Shore Drive and lowest of the low are gone.
The huge financial sector is holding the city afloat for now, but no one knows how long they will sit tight while the city falls down around them.
I will never ever loose my juvenile sense of humor.
I know it’s just a typo but…
“…firmer Obama Chief of Staff Rahm Emanuel…”
…has me giggling repeatedly at lunch.
On topic, as long as the federal legislature has the cojones to resist a state-level IL bailout (of which I am absolutely not confident), I will laugh my ASS off when Chicago goes Trulbert.
It strikes me that Chicago might just be a lot safer if it goes Trulbert.