Chicago’s mountain of debt has been downgraded to “Junk”:
“Whether or not the current statutes that govern Chicago’s pension plans stand, we expect the costs of servicing Chicago’s unfunded liabilities will grow, placing significant strain on the city’s financial operations absent commensurate growth in revenue and/or reductions in other expenditures,” the agency said in a release.
The downgrade affected $8.9 billion of general obligation, sales, and motor fuel tax debt, according to Moody’s.
The firm said its downgrades could trigger up to $2.2 billion in accelerated payments on Chicago debt.
Who knew – trying to run a spending/”service”-heavy regime based on systematically transferring money from producers to consumers (with a healthy gratuity for the political class in between) is no way to run a government?
Some of us did, anyway.
How long ’til Saint Paul, Duluth and Minneapolis follow suit?