![]() No one even knew the debt total until the EM Kevin Orr sorted it out.Īs for it not affecting the man on the street, I wouldn't be so sure. They finally had to bring in an EM to sort out 30 years worth of insane bookkeeping. ![]() No one had the power to bring Detroit down but Detroit it's city council and mayors ran the borrowing into overdrive until no one would lend them money to cover their bills. That transfers the bulks of the tax burden onto schmucks that work for this firms and sadly there are not of us to pay the bills of the folks that need state services but have no income to tax. ![]() Don't forget that the high rises that are built routinely hire Mike Madigan to have their property taxes reduced to laughably low levels, the firms 'relocating' are similarly the recipients of 'grants and incentives' to make their taxes vanish. This not about who is "cheering for underdog Chicago" in the battle of mean nasty bond issuers who twirl their waxed mustaches waiting to foreclose, it is about economic non-sustainability of increasing debt in the face of insufficient growth in revenue. Similarly the State of Illinois has a situation that is not sustainable - without CUTS in spending / future obligations AND some additional revenues there won't be enough money to cover current bills nor future unfunded liabilities. That means every time that the mayor has to sit down and decide to borrow it gets more and more costly and the SPIRAL of ever increasing debt becomes worse and worse. The bonds that the city needs to use to finance operational debt are getting MORE AND MORE costly because the RISK OF DEFAULT as judged by the bond issuers is GROWING MORE AND MORE LIKELY. that in contrast "SOMEONE" wanted to see a city like Detroit "go down"?ĭoes not matter what ANYONE wants, what matters is the financial reality the City of Chicago AND the State of Illinois are facing. Besides, no one WANTS to see Chicago go down. these things aren't something the average guy needs to worry about.
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