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Fiscal Crisis In Chicago: Pensions 31% Funded, Moody's Downgrades Debt 3 Notches, Pension Liability Is $61,000 Per Household; Mish's Proposed Solutions

Tuesday, September 17, 2013 - 3:33 PM
 

Bankruptcy Here We Come

Unfortunately, unions are highly unlikely to accept my common sense proposal.

Ultimately, Chicago will play around with superficial remedies just like Central Falls, Detroit, and several cities in California (all of which succumbed to the inevitable).

In the meantime, Chicago will probably follow some other major cities into bankruptcy, such as Oakland and Los Angeles.

Investors better pick their municipal bonds carefully, because some major hits are on the way.





Read more at Mish's Global Economic Trend Analysis 

7
MikeMike327 posts since
Feb 22, 2010
Rep Points: 876
1. Tuesday, September 17, 2013 - 4:51 PM
Embrace the Headlines:

Detroit declares bankruptcy!
The Federal Reserve to taper!
Investors bail on muni funds!
Puerto Rico – the next Detroit!

What to expect from these headlines? For individual municipal bond investors, the answer is easy: Great yields on high-quality municipal bonds!

Embrace the Headlines - FMSbonds.com Municipal Bonds

 
7
ShorebreakShorebreak2,696 posts since
Apr 6, 2010
Rep Points: 14,620
2. Tuesday, September 17, 2013 - 5:00 PM
Two sides make the market.

Good post, Shorebreak.
4
MikeMike327 posts since
Feb 22, 2010
Rep Points: 876
3. Thursday, September 19, 2013 - 4:10 AM
Shorebreak, I don't think it is accidental that the spiel (song and dance) for buying muni bonds is brought to you by a muncipal bond salesman and executive of a muni bond dealer.
2
loulou554 posts since
Aug 3, 2010
Rep Points: 3,437
4. Thursday, September 19, 2013 - 8:24 AM
I am sure that each of you have your budget for 75 years out and are not in deficit. You do know it would have to be for all your kids and grandchildren and great grandchildren and most likely great great grandchildren that are not even born yet. Well maybe you do have great great grandchildren. My friends 2nd child was her grandmothers 90th great grandchild and she was already a great great grandmother several times. 
1
Ally6770Ally6770942 posts since
Jan 16, 2010
Rep Points: 2,741
5. Thursday, September 19, 2013 - 6:10 PM
I am sure that each of you have your budget for 75 years out and are not in deficit. You do know it would have to be for all your kids and grandchildren and great grandchildren and most likely great great grandchildren that are not even born yet. Well maybe you do have great great grandchildren. My friends 2nd child was her grandmothers 90th great grandchild and she was already a great great grandmother several times. 

I do not understand your post.  Please clarify.  TIA
1
MikeMike327 posts since
Feb 22, 2010
Rep Points: 876
Reply