Posted on 05/12/2015 4:07:05 PM PDT by NRx
A major rating agency downgraded the city of Chicago's creditworthiness two notches to junk status, a move likely to increase the city's borrowing costs and make investors skittish as the financial world reacts to last week's Illinois Supreme Court ruling that bodes ill for city efforts to resolve its massive pension fund shortfall.
Moody's Investors Service downgraded the city's debt rating on bond issues backed by property, sales and fuel tax revenue to Ba1, one notch below investment grade, from Baa2, specifically citing last week's Supreme Court ruling on an attempt to cut state pension costs. Moody's calls the Ba1 rating "speculative," which many investors simply call "junk," meaning investments in them carry far greater risk of a loss.
(Excerpt) Read more at chicagotribune.com ...
Se also...
How Chicago has used financial engineering to paper over its massive budget gap
And because 0bama wants his library there.
It’s a helluva town.
The fraud, traitor, extortion, and default section of the library should have tons of books.
I had to laugh a bit at this.
I feel bad to laugh because real people and government services are badly affected by such news.
On the other hand, Chicago has been run by liberals/Democrats for generations, so we know who got them into this mess. It didn’t happen overnight . Rahm has a big job ahead. He can’t blame the GOP for the problems in his city.
What is the rating below Junk?
Yep. My only question is: how are they going to blame this on Republicans??
Deservedly so.
Joy...
More Chicagoan refugees moving to Grand Rapids and west Michigan.
I already see a crap ton of Illinois plates in the area. Gonna have to brace for the main horde to arrive.
Rahm's benefactor Rauner ran as a Republican for governor and won. He spoke to the city council last week and told them the state would not bail out the city. Now we know who the Rats will blame.
The entire state is a mess financially and it's not going to get better. The solution is going to be higher property taxes and for the city a casino.
Will the liberals and Obama try to get bail out legislation for Chicago through Congress? If they try and faik then that’s how this could be blamed on the GOP.
Also, if Obama wants to talk “dis investment”,in cities such as Chicago, he can blame that on white folks, white flight, businesses avoiding cities such as Chicago. They will find a way to blame the GOP somehow.
“What is the rating below Junk?”
Federally Absorbed
Given a choice, I'd rather be a Chicago pensioner rather than a pension investor. Power could swing either way, but ['Rat] voters are not likely to change their ways.
Default
Detroit.
The line will be that anyone who is not in support of a bailout is racist, hence a Republican /s.
‘Don’t touch our junk.’
LOL!
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