Posted on 04/05/2026 12:06:27 PM PDT by Rummyfan
Chicago has seen better days. The city is losing residents and businesses and is digging itself deeper into debt just to maintain the status quo. Yet city officials show no intention of cutting back on spending.
This crisis, however, will have nationwide implications. An unconditional bailout will signal to other fiscally mismanaged cities that their irresponsibility can be rewarded.
At its core, Chicago’s fiscal problems are straightforward. For decades, the city has committed itself to unsustainable spending levels. While its ridership is declining, the Chicago Transit Authority (CTA) is flush with funds thanks to sales tax and driver fees. Chicago Public Schools (CPS) expenditures keep growing despite declining student enrollment. In addition to structural budget deficits, Chicago has some of the nation’s largest unfunded pension liabilities.
Meantime, residents are fleeing both Chicago and the State of Illinois. In the year ending last July 1, Illinois lost over 40,000 residents, many from Chicago and the surrounding suburbs. The Chicagoland area lost more than 35,000 residents either to other counties in Illinois or to other states. Despite an influx of 44,000 international migrants, blunting the effect of net domestic outmigration, government officials can’t conceal the city's fiscal irresponsibility.
Residents, bond investors, and credit rating agencies see the writing on the wall: the Windy City is headed over the fiscal cliff. Chicago’s credit ratings have been downgraded to BBB+, with rating agencies citing fiscal issues. While Illinois has enjoyed credit-rating upgrades in recent years (thanks to support from federal Covid-19 funds set to expire this year), Illinois still remains the worst-rated state.
(Excerpt) Read more at city-journal.org ...
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CLOWARD PIVEN.
This is what they want
Total failure of USA.
Genocide.
Trump to Chicago “Drop Dead”.
The rest of the United States have been rescuing big cities from their fiscal recklessness for decades.
They borrow against the future to buy votes, to keep the police on the side of corrupt administrations, and to fund enormous fraud and corruption.
The U.S. Government should only fund a bailout if those responsible are removed from power.
The Left does not care if they bankrupt the USA, they want it to happen (see Cloward Piven strategy).
That’s Illinois’ problem - nobody else.
Absolutely, positively NO BAILOUTS.
How many fiscal cliffs are we going to go over before we finally hit the bottom? 🤬
…I know! I know! “It’s fiscal cliffs all the way down!” 🫠
Chicago’s way ahead on that. Probably a parolee in a bunny suit pulling an automatic weapon out of his Easter basket in a backyard party now to face off against rival gang members.
News will say “a dispute among people who knew each other. The general community is not at risk now and can re-enter the cordoned off police perimeter. And Happy Easter.”
Millions for law enforcement defense but not one cent for tribute to Chicago.
Nod to Robert Goodloe Harper who said “Millions for defense, but not one cent for tribute” in 1798.
What happened when Detroit went bankrupt?
Summary: Some creditors took major losses
Chatgpt
1. Why Detroit went bankrupt
Several long-term problems came to a head:
Population collapse: From ~1.8 million (1950s) to under 700,000
Loss of manufacturing jobs (especially auto industry)
Shrinking tax base
Rising pension and healthcare obligations
Poor financial management and mounting debt
2. Emergency control
Michigan’s governor appointed an emergency manager:
Rick Snyder appointed Kevyn Orr to take control of finances
The manager had power to override local officials and restructure debt
3. Bankruptcy process (2013–2014)
Detroit filed under Chapter 9 (municipal bankruptcy)
Creditors (bondholders, unions, retirees) fought over who would get paid
A federal judge ruled Detroit eligible for bankruptcy, even allowing cuts to pensions (a controversial decision)
4. The “Grand Bargain”
One of the most important outcomes:
A deal involving:
The state of Michigan
Private foundations
The Detroit Institute of Arts
Money was pooled to:
Protect city-owned art from being sold off
Reduce pension cuts for retirees
5. What got cut or restructured
Detroit reduced its obligations significantly:
Debt reduced by billions
Pensions cut modestly (especially for some workers)
Retiree healthcare benefits sharply reduced
Some creditors took major losses
6. Public services reset
Before bankruptcy:
Slow emergency response times
Broken streetlights
Blight and abandoned buildings
After restructuring:
Investment in:
Police and fire services
Street lighting
Demolition of abandoned homes
7. Exit from bankruptcy
Detroit officially exited bankruptcy in December 2014
It had a leaner balance sheet and a long-term financial plan
8. What happened afterward (recovery & limits)
Improvements:
Downtown and midtown saw major redevelopment
New businesses and population stabilization
Better city services
Ongoing challenges:
Many neighborhoods still struggle with poverty and blight
Population remains far below its peak
Economic inequality persists
Bottom line
Detroit’s bankruptcy was essentially a reset button:
It wiped out a large portion of unsustainable debt
Forced painful cuts (especially to retirees)
Allowed the city to rebuild its finances and services
But it didn’t solve everything—it stabilized the city rather than fully restoring it.
If you want, I can break down who lost the most money (bondholders vs. pensioners) or compare Detroit to other cities that nearly went bankrupt.
However, Detroit is not steeped in cultural marxism like Chiraq.
So bankruptcy would rupture the marxist teat, and they would riot. Daily.
They riot daily without bankruptcy, but almost always after dark. Bankruptcy would make the Miracle Mile and the business downtown district spaces unsafe in the daytime.
I'm all for it.
Flood the state with Homeland Security and I.C.E.
Illinois has been invaded. Every village and city is full of illegals that are bancrupting schools and government services.
“... should only fund a bailout if those responsible are removed from power.”
It’s not as simple as that.
They are content to let a well below average IQ mayor destroy their city. Let them rot. I have never seen anybody in any position of authority who is is outrageously stupid as that one.
“... should only fund a bailout if those responsible are removed from power.”
It’s not as simple as that.
CHICAGO HAS BEEN ROTTEN TO THE CORE BACK TO THE FIRST MAYOR DALEY...
And they keep electing third world savages to run their city. Chicago is on a trajectory to becoming the next Detroit. /spit
Bail out criminals such as Lightfoot and Johnson and the whole corrupt apparatus?
That would be wasted . The whole corrupt system would have to be ripped out to make a bail out make sense.
Sending any money to the clowns currently running the circus , would accomplish nothing.
The tentacles of corruption run deep . Perhaps a cow will kick over a lantern and burn it all down.
Let’s watch the life cycle. Learn for America. Watch CA and NYC as well.
Let’s learn what demoncrats can do....to the vitter end. Maybe they morf into Reaganites utimately?
Wont know until we let them alone, all alone.
Amen! They ruined western North Carolina, and are starting to stink up East Tennessee.
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