Democrat Utopia of Chicago On Road To Detroit-Style Financial Collapse

Democrat Utopia of Chicago On Road To Detroit-Style Financial Collapse

Chicago has got a bond rating downgrade.

Now they are at 'A-' now.

They routinely issue new bonds to cover interest payments.

63% of their property taxes last year went to debt payments.

Big pension liabilities too. Big funding payments coming up in 2015.

Not good. Detroit bound.

Fiscal Disaster: A major credit rating agency has just given Chicago, with more general obligation debt per capita than Detroit, its second triple-notch downgrade in six months. Its bonds are perilously close to junk status.

Citing skyrocketing pension costs and a lack of meaningful solutions, Fitch Ratings lowered Chicago's debt to A- from AA- last week, making it the second serious downgrade since July.

The move by Fitch follows a triple downgrade of Chicago's bond rating by Moody's Investors in mid-July.

Good informative article....
Democrat Utopia of Chicago On Road To Detroit-Style Financial Collapse

Is Chicago a "Dead Fish" City ?

‘LIKE A CANCER’ An unprecedented analysis of bond spending in Chicago finds a pattern of financial desperation, political expediency and little oversight.

But Illinois law allows Chicago to borrow billions without asking residents’ permission or providing much information about how the money is spent. There is no limit on the city’s general obligation debt, and the sole check and balance is the City Council, a body that rarely pushes back on major mayoral decisions.

Since 2007, aldermen have authorized $7.6 billion in general obligation bond issuances without a single dissenting vote. And each year they get millions in bond proceeds to dole out for projects in their wards.

Looks like it was either set up for failure or a as haven for crooks. Based on what's come out of there - I'm going with the latter.

apps.chicagotribune.com...

who wants to bet obama sends deadfish a trillion dollar check when chicago goes belly up?