Chicago has more pension debt than 44 states
Chicago’s core public pensions remain among the worst-funded local retirement systems in the nation. According to a recent report from the Equable Institute, the four city-sponsored pension systems – municipal, laborers, police and fire – along with the Chicago Teachers’ Pension Fund hold more debt than 44 states.
According to data provided by the institute, Chicago’s core systems have a combined pension debt of nearly $48 billion. That is currently more pension debt than 44 states, underscoring how difficult the city’s pension situation is and how it continues to cloud the city’s fiscal future despite a supposed “turnaround” touted by city leaders....
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The rest of the country has to begin planning now, immediately, how they will fight being forced to pay for Chicago's political and criminal corruption. Because you know, as sure as this old world keeps spinning around, that the Chicago politicians and their corrupt buddies in Congress, from many states but in particular New York and California, that they are already planning how to shake down the people who didn't cause this mess.
Chicago has had 90 years to get things just the way they wanted them. This is what they created.
And the Chicago mob and their ilk will run the shakedown through any or all of the institutions they can corrupt or control, the House of Representatives that holds the power of the purse, the Presidency and its powers of executive orders and the bureaucrats in its administrative state, including but not limited to the U.S. Treasury, and finally the Federal Reserve which seems to have some funny ideas about buying muni. paper.
That two year old headline actually sat atop a 2019 story from Reason Magazine which we bracketed with an intro:
Mr. Buffet originally said this in relation to the (formerly) monoline insurers, one line of business, insuring muni bonds but it is very important on an individual level as well.
More after the jump.If you are going to live in the United States do not be resident in one of the high liability state and do not become a creditor to those states.
And an outro that linked to one of Warren's letters to the Berkshire Hathaway shareholders:
Keep in mind that this was written before the covid-19 lockdowns destroyed any semblance of state and municipal finance rationality.
In his 2008 Chairman's Letter to the Berkshire Hathaway shareholders Mr. Buffet laid out the prime risk of insuring munis: Moral Hazard. Politicians will do anything to avoid disturbing their public employees, source of votes and more importantly campaign contributions. Here is part of a much longer 2010 post "Buffett’s ‘Dangerous Business’ Ensnares Municipal Bond Insurers (ABK; AGO; BRK-A; BRK-B; MBI)":
From the 2008 Chairman's Letter (emphasis mine):
...Tax-Exempt Bond Insurance....
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Mr. Buffett's thinking on dealing with these swine can be boiled down to two words: Do NOT.
Do not do business with them unless you have good collateral, in hand. Do not acquiesce to their pleading, cajoling, threats of force or retribution. Do not "be nice" and entertain, or in any way agree with, their mental illness and social depravity.
Do not be a cuckold to those corrupt bastards in Cook County.
