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Friday, July 26, 2013

Chicago CEO Club, With Rahm and

Pritzkers on Board, Pushed for ChicagoBond Downgrade, Whacking Local Investors

and Pension-Holders

http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html

Even more so than most cities, Chicago has had the best government money can buy. In thiscase, the money is willing to engage in a scorched-earth policy of crushing local investors and

wrecking the city budget to achieve its end of taming unions and making Chicago even easierpickings for looting via infrastructure sales.

The backdrop is that the city was hit with a stunning three-ratings-notch downgrade by Moodyslast week, from AA3 to A3.As the Chicago Sun-Times stressed, that sort of drop is unheard ofabsent a natural catastrophe. From the article (hat tip Joe Costello):

Moodys Investors dropped the citys bond rating from Aa3 to A3, citing Chicagos verylarge and growing pension liabilities, high-fixed costs, unrelenting public safetydemands and significant debt load.

You dont usually see a triple-downgrade unless there is a catastrophic event, such as anatural disaster or terrorist attack, said Civic Federation President Laurence Msall.

This is a financial hurricane event for Chicago. The citys borrowing costs will risedramatically and their ability to use creative financing is going to be limited because of

the costs associated with having such a low rating.

The bond rating at the Chicago Public Schools has dropped repeatedly since Emanuel

tookoffice, but Thursdays triple-drop was the first impacting the citys bond rating.

The current administration has made efforts to reduce costs and achieve operational

efficiencies, but the magnitude of the citys pension obligations has precluded anymeaningful financial improvements, Moodys wrote

Emanuel responded by essentially saying, I told you so.

http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.suntimes.com/news/cityhall/21392468-418/financial-hurricane-hits-chicagos-bond-rating.htmlhttp://www.suntimes.com/news/cityhall/21392468-418/financial-hurricane-hits-chicagos-bond-rating.htmlhttp://www.suntimes.com/news/cityhall/21392468-418/financial-hurricane-hits-chicagos-bond-rating.htmlhttp://www.suntimes.com/news/cityhall/21392468-418/financial-hurricane-hits-chicagos-bond-rating.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html

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The immediate loser are local investors, since municipal bonds are generally owned by people inthe immeidate area, and the city, since it will face higher borrowing costs. So why is Rahm sosmug, and why was he so keen to see a downgrade? Normally corporate CEOs and citymanagers tout the prospects of their charges and want them to have the most favorableborrowing costs.

But the big point of friction has been Chicagos underfundedpensions, the rest of over ten yearsof the city failing to contribute enough annually. And Rahm, rather than trying to find equitablesolutions, has instead been playing hardball from when he took office:

Last year, Emanuel blindsided and infuriated union leaders whose collaboration he had

promised to seek to solve the pension crisis.

Instead of negotiating first with union leaders in Chicago, he went to Springfield to lower

the boom. The following day, he sent a letter to city employees to soften the blow of the

bitter pill hes asking them to swallow: a 10-year freeze in cost-of-living increases for

retirees; a five-year increase in the retirement age; a 5 percent increase in employeecontributions and a two-tiered pension system for new and old employees.

Labor leaders accused the mayor of pitting hardworking employees against taxpayers by

portraying a 150 percent increase in property taxes as the only alternative to employeeconcessions.

In the end, Chicagos pension crisiswas put off along with states $83 billion pensionproblem as lawmakers continued to grapple with rival plans championed by House

Speaker Michael Madigan and Senate President John Cullerton, both Chicago

Democrats.

With that background, heres the next piece of the story: local CEOs have been pushing therating agencies for downgrades. Watch this video starting at 47:00. The speaker is Ty Fahner, thehead of the Civic Committee of the Commercial Club of Chicago.Members include the union-busting Pritzers, both Penny and Thomas, a long list of current and recent corporate CEOs andchairmen, influential members of the banking and real estate industries, partners from major lawfirms, and Rahm as an honorary members. This is a Whos Who of business Chicago.

Not only was Fahner open about how aggressive the lobbying by the CEOs for the downgradehad been, and didnt disagree with the questioner who called it irresponsible (as in we know weare doing harm to promote what is good for us), he said theyd had to back off because theydidnt want their handiwork to be too visible, and was exhorting people in the room to take upthe campaign for him.

So here we have it: city fathers working to wreck a city budget so their companies will benefitfrom more tractable, as in more broke, local workers.

http://www.civiccommittee.org/membershttp://www.civiccommittee.org/membershttp://www.civiccommittee.org/membershttp://www.civiccommittee.org/members

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I asked a colleague who had worked for Moodys in the 1990s why outside parties were allowedto influence ratings. His reply via e-mail:

When I was at Moodys, a substantial majority of the rating downgrades or upgrades thattook place were initiated by an outside investor inquiry.

These days, its big business for investors to research a bond, conclude that it should beupgraded or downgraded, take the appropriate position in the bond, and then lobby the

rating agency to make the move that is supported by their research, and profit from thechange in market value (or market to model valuation) that accompanies the rating

change.

Since rating agencies have historically invested virtually nothing in surveillance, it is not

hard for a diligent investor to be ahead of the rating agency action. Once the rating

agency gets the info on the bond, it is very hard for the rating agency to ignore the

information.

So these Illinois business leaders are just applying the same techniques that people atThird Point, Paulson, Elliot, etc. have been applying for years. (Not only that, the rating

agencies use the same approach against competitors- if they hear from investors/issuers

that a competing rating agency is doing something too aggressively, they call it into theSECwhich is what happened to Egan-Jones).

When I first read about the downgrade, my reaction had been that Rahm must have pushed for it.My colleague had a similar reading:

Also, Im pretty sure I read in last couple of days that Rahm himself lobbied Moodys to

downgrade his state. I think thats pretty fucked up, but Im sure his hedge fund buddiestaught him all about it. Its about as evil as I would expect from Rahm as an electedpolitician.

Nothing has changed with the current corrupt ratings system because it serves too many powerfulinterests too well. Jane Hamsher, based on a detailed construction of when S&P became a bigscaremonger over US deficits and downgraded the US (which was supposed to End the World asWe Knew It butas we predicted, didnt),made a persuasive casethat the ratings agency took thisstance to ward off regulatory action. Had the US downgrade produced the bond yield blowoutthat the financial media was convinced would happen, its a near certainty that Obama wouldhave gotten his Grand Bargain and Social Security and Medicare would have been trimmed in aserious way. You can expect more drumbeating about the US rating as Obama makes anotherGrand Bargain push (the biggest upside of the Edward Snowden revelations may not be anycurtailment of the surveillance state, but forcing Obama to divert so much political capital to thatfight that he doesnt have enough chips left to push through Medicare and Social Securitywhackage).

http://www.nakedcapitalism.com/2011/08/will-sp-downgrade-be-another-y2k-scare.htmlhttp://www.nakedcapitalism.com/2011/08/will-sp-downgrade-be-another-y2k-scare.htmlhttp://www.nakedcapitalism.com/2011/08/will-sp-downgrade-be-another-y2k-scare.htmlhttp://www.nakedcapitalism.com/2011/07/is-standard-and-poor%E2%80%99s-manipulating-us-debt-rating-to-escape-liability-for-the-mortgage-crisis.htmlhttp://www.nakedcapitalism.com/2011/07/is-standard-and-poor%E2%80%99s-manipulating-us-debt-rating-to-escape-liability-for-the-mortgage-crisis.htmlhttp://www.nakedcapitalism.com/2011/07/is-standard-and-poor%E2%80%99s-manipulating-us-debt-rating-to-escape-liability-for-the-mortgage-crisis.htmlhttp://www.nakedcapitalism.com/2011/07/is-standard-and-poor%E2%80%99s-manipulating-us-debt-rating-to-escape-liability-for-the-mortgage-crisis.htmlhttp://www.nakedcapitalism.com/2011/08/will-sp-downgrade-be-another-y2k-scare.html

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As our former ratings agency staffer concluded:

It is unreasonable to expect that anything would have gotten better with the ratingagencies when nothing has been done to change anything. If elected officials really

wanted this sort of thing to stop, they would actually, you know, do something. It is clear

that they are happy with the current system, which includes a lot more lobbying activityfrom the big three than it did in the past.

And increasingly, one of the pet political uses is for ratings to serve, as the questioner indicatedin the video, to create the illusion that the market is insisting on austerity, when powerfulpeople are rigging the process.

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50 Comments:

dearieme says:July 26, 2013 at 6:08 am

hardworking employees: both of them.

Reply

Jimbo says:

July 27, 2013 at 12:43 am

Rahm, is that you?

Reply

JimmyZsays:July 26, 2013 at 6:15 am

Am I getting this right that its an interest rate fixing scheme, at a time when private borrowersare rejected by the risk averse lenders, who have too much cash in reserve, with no place toinvest it? So they downgrade the public borrowing rate, and have their sure thing that beats themarket. I like to try and think one step ahead, since I dont have the background knowledge

already. So to me, the next step is to complete the circle with rigged stimuli contracts. Thesebecome authorities unto themselves, forcing citizens to pay without a say. Its like triangulartrade combined with a shell game, to this layman.

Reply

Kristen says:

July 26, 2013 at 3:31 pm

You are most certainly getting it right, and the rigged stimuli are Chicagos TIF districts:

http://www.chicagoreader.com/Bleader/archives/2013/06/17/the-tif-washet-tu-bright-one

Everything in this city is a game.

Reply

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dfoorce3 says:July 26, 2013 at 6:29 am

How did any even somewhat intelligent Chicago voter not see this coming when they voted that

NWO, globalist scumbag Emanuel in to office. You shall reap what ye sow. Its like the peopleof FL, OH and WI acting shocked, shocked I tell you, when their governors lit thier states on firejust as they said they would when they were running for office. Wake up sheeple!

Reply

HotFlash says:

July 26, 2013 at 6:35 am

Do they use hand-counted paper ballots in Chi? But really, Chicagoans will elect theDem who is running, and the Dem party controls that, neh?

Reply

Paul Wsays:

July 26, 2013 at 7:54 am

Frank Nitty wasnt voted in, he was installed. Just ask Al up there in the Big House.

Reply

PaulArtsays:

July 26, 2013 at 9:08 am

My thoughts exactly. Why exactly did the Unions support this low life? Why did they notrun their own candidate?

Reply

o Fran says:July 26, 2013 at 10:49 am

The head of the Chicago Teamsters endorsed Rahm in 2011 primary while otherunions either stayed neutral or opposed him.

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A lovely bunch of people:

http://www.suntimes.com/20538198-761/sons-of-rahm-emanuels-top-union-ally-john-coli-also-rise.html

Reply

o Jennifersays:July 26, 2013 at 10:49 am

I did not vote for him. But its important to remember that he was coming straightfrom Obamas White House to Obamas hometown. There was at the time, andprobably always will be support for Obama in Chicago, especially in minoritycommunities (even as they complain). It was a very short election, so it really

favored somebody with high name recognition, and with a lot of money. Theother two candidates were both hispanic, had there been one unity candidatethings might have been different. As for union support, I dont remember any butif did get any official endorsements it was probably from the trade unions, whotypically support the powerful, i.e. pay to play. There was a aggressive challengeto keep him off the ballot, but that failed-again he had the support of the powerfuland any other candidate would have got kicked off. Again, nobody I knew votedfor him but coming off of years of Daley I think there was sense as somebodynew and young (by comparison) he had to be better. He certainly said the rightthings, and has done quite the opposite. I think even cynics were taken aback tothe extremeness of the neoliberal agenda he has pursued.

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Lambert Strethersays:July 26, 2013 at 11:35 am

[E]ven cynics were taken aback to the extremeness of the neoliberalagenda he has pursued. Just like Obama.

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chicagogalsays:July 26, 2013 at 3:13 pm

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There were a number of challengers in the primary using his residencystatus for their ballot protest. If I remember correctly, Rahm had movedhis family to DC, changed his drivers license and everything else toreflect DC as his residence and rented out his Chicago home. When Daleyannounced his retirement (timed for Rahms easy transition), Rahm

suddenly wanted to break the newly renewed lease with his tenant so hecould claim the proper residency in order to run. To his credit, the tenanttold him where to get off, leaving Rahm to rent an apartment. The wholeballot challenge ended up in court, where the normal IL corrupt judgesfound that Rahm was indeed a resident for the specified time period andcould certainly run for Mayor. The rest is history, as are the scorched earthpolicies he insists on using. As for the voters, the majority vote how theirward bosses tell them, so no real hope to change the status quo for his re-election as many believe will happenthough I hope to be wrong aboutthat.

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o RanDominosays:July 26, 2013 at 11:31 am

You have to distinguish the union bureaucracy from the union members. Thebureaucrats control the members just as the Democratic Party leadership controlsDemocratic Party members (who are generally far more liberal and progressivethan the leaders) through rigged internal process, good-old-boy networks, andfavors for loyalty. Also, unchallenged propaganda by the (organized)leaders/bureaucrats directed at the (unorganized) mass membership.That said, the union bureaucrats will not challenge the Democrats because theyhave cozy personal relationships. Its a racket. Union mis-leaders are getting paidhundreds of thousands of dollars salaries- why would they do anything to rock theboat?Nor will the membership take any real risk (even if the long-term result is certaindestruction) as long as they still have things fairly OK- do you take a huge risk ofbeing fired to fight back against the long-term steamroller? By accepting the bribeof Privilege *within capitalism* in the 30s-60s, the middle-class painted itselfinto a corner. They rested on their laurels instead of recognizing that thoseprivileges would only last until the capitalists recovered enough to come takethem back. So today you have so-called unions, including the membership, thatare only interested in maintaining that privilege. They are totally invested inlabor peace and refuse to recognize that it was nothing but a ruse to disarm ourside in the Class War. As long as they refuse to see this, myopically focused onthemselves and their privilege, what hope is there in them? Does anyone expectthem to risk getting fired in order to try a strategy that might actually work?Wisconsin is an even more extreme example. Despite it being painfully obvious

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to activists that the government since 2011 has been rolling out a program ofShock Doctrine-style boot-stomping-face-forever neoliberalism, union membersnever were able to see past the ends of their own noses. They went with theDemocrats again because there was no immediate danger in doing so. No illegalor potentially contract-breaking acts necessary. And then since it failed they have

been completely paralyzed. Many people have gotten in their Privilege EscapePod and fled the state like the cowardly scum they always were. The unionbureaucrats have taken up the slogan (I am not making this up) We can win withthe tools we have. The actual workers, still drowning in privilege, are a mob offat, wide-eyed animals capable of processing immediate stimulus but with noability to do any kind of higher cognitive functions, long-term planning, orhistorical analysis- particularly if the results of that kind of thinking would be,You are going to have to be exposed to danger at some point. Ah, if there is amotto for the middle-class, is it not, Nothing bad can ever be allowed tohappen?

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Lambert Strethersays:July 26, 2013 at 11:39 am

Again, though, TINA. IsNews from Nowhere really the alternative, and ifso, how to get there?

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RanDominosays:July 26, 2013 at 3:10 pm

Organizing the Precariat class on industrial lines, recognizing thatshitty low-skill jobs is its own industry, is probably the bestplace to start. And creating viable alternatives here and now thatpeople can tangibly buy into when the plausible promisethreshold is reached.

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Lambert Strethersays:July 26, 2013 at 3:14 pm

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[V]iable alternatives here and now that people cantangibly buy into is it. Concrete material benefits(tangible) count in politics. Havent seen them but thatdoesnt mean they arent there. And theshitty low-skilljobs collectively have our fragile supply chain by the

throat.

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o Montanamavensays:July 26, 2013 at 12:49 pm

I had some kind of pie in the sky idea of labor unions until I started reading laborhistories. You need solidarity across the boards in order to run a labor candidate, I

would imagine. But there has never been that kind of solidarity here in the U.S.like there is in Europe. Wont happen without major changes in how unions areorganized. Right now they are more like fiefdoms than communities of workers.French unions are lean with small staffs and are paid about the same as theaverage worker. So with very little money they are still able to pull off a nationalgeneral strike. Solidarity of purpose is powerful, but money rules here.

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middle seaman says:July 26, 2013 at 6:37 am

Moody is no other than the agency that gave the most sterling rating to the mortgage garbage WShas created from worthless paper. Had we had a Democratic president and a Democratic Senate,the heads of Moody, as well as other rating crooks and CEOs of the TBTF banks, would havebeen in jail for decades to come.

The pension problem, not uniquely American, is nothing short of transfer of money from therightful hands of future retirees to a variety of blood suckers from the 1%. With help fromReagan, Bush and Obama, employees wages have been cut and pensions have been painted asunreasonable, even outrageous, burden on the public.

Our political system is bankrupt. There is a single anti-labor front from the extreme right toalmost the extreme left. (Our lovely left is way too arrogant to care about labor; they do NSAand Palestinians only.)

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Lambert Strethersays:

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July 26, 2013 at 11:40 am

Hard to organize when the NSA is recording everything and (tinfoil hat time) feeding thechoicest morsels to the local Fusion Center. That said, I take your point.

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Jim Haygoodsays:July 26, 2013 at 6:37 am

From an article in the Chicago Tribune a couple of months ago:

The Chicago-based Civic Federation said Tuesday the funding gap for 10 Chicago-area publicpension systems widened by 16.7 percent to $32 billion in fiscal 2011 from the year, warning ofservice cuts or tax hikes to bridge the gap.

The civic watchdog group also found that pension funding levels continued to drop, falling to anaverage actuarial level of50.8 percent in fiscal 2011 from 80.3 percent in fiscal 2002. A fundinglevel of 80 percent is considered healthy.

http://tinyurl.com/nh6rm89

According to the Civic Federation, Chicago seems to have spent nearly a decade systematicallylowballing its pension contributions. The Sun-Times article cited in this post says that they arestill doing it:

In its report, Moodys noted that Chicago closed the books on 2012 with $231 million in generalfund reserves and $625 million in leased asset reserves.

Had the city fully funded its $1.5 billion actuarially required contribution to the four cityemployee pension funds in 2012 alone, these two reserves would have been entirely depleted,Moodys said.

Actuarily required but not legally required where have we heard this before? Errrmmmm oh, yeah Social Security. Its about $10 trillion short of actuarial full funding. But becauseof a handy Supreme Court ruling fifty years ago, legally Social Security operates at the discretionof Congress (the very entity which has siphoned off its reserves). Little citizens such as ourselveshave no legal recourse to challenge the chronic underfunding of this national pension scheme.

Owing to the abuse of sovereign privilege, there is an inherent conflict of interest in government-sponsored pension schemes. Thanks to worsening demographicssix of the 10 Chicago-areafunds had more retirees than workers in fiscal 2011the astonishing scope of sovereignembezzlement is out on the table for all to see.

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If public pension funds were obliged to comply with ERISA, underfunding would never havereached this level. But of course, governments have conveniently exempted themselves from thehigh standards imposed on the private sector in 1974. No accountabilityhows that workingout for us?

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Yves Smith says:

July 26, 2013 at 7:17 am

Im not saying Chicago does not have an underlying problem. But burning the bondrating to pressure the unions (and thus screwing municipal bondholders and making yourgeneral funding problems more acute) is a hell of a way to go about it.

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o optimadersays:July 26, 2013 at 11:18 am

Correct and correct.And the Chicago municipal employee unions are as dirty as anyone in theChicago political arena. The Chicago teachers union is as big a debacle asanything.

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o Jim Haygoodsays:July 26, 2013 at 11:19 am

I concur. Its a quite destructive way to gain political leverage.

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o Siggy says:July 26, 2013 at 1:02 pm

Destroying the bond ratings is rational when it is considered within the constructof The Chicago Way.

http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318345#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318345#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318351http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318351http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318351#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318351#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318475http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318475http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318475#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318475#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318477http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318477http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318477#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318477#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318533http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318533http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318533http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318477#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318477http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318475#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318475http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318351#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318351http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318345#respond

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Reply

Don Levitsays:

July 26, 2013 at 3:26 pm

Jim:You are correct about actuarially required, but not legallly required.Even from an actuarial standpoint, the FASAB, the accounting advisor for the federalgovernment, opines that social insurance payments are non-exchange transactions.Exchange transactions are those in which people barter their goods and services. Non-exchange transactions means one party, the government, compels you to pay in, while theother party, the citizens are not obligated to be paid back. And, this is from an accountingadvisor!Don Levit

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Brooklin Bridge says:July 26, 2013 at 7:17 am

Its been perhaps too long sine I read Annimal Farm. I cant tell if Ty Fahner is a pig starting tolook like a human or a human starting to look like a pig. But hes right at that transformationpoint where one or the other will emerge.

In either case, no offense meant to the Pig species of annimal whose only sin is that humans havefound them easy to fatten up.

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gabeli says:

July 26, 2013 at 10:14 am

This is the comment of the day. Superb!

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wunsacon says:July 26, 2013 at 7:22 am

Is this for real?

http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318533#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318533#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318603http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318603http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318603#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318603#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318350http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318350http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318350#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318350#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318427http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318427http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318427#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318427#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318353http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318353http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318353http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318427#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318427http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318350#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318350http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318603#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318603http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318533#respond

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http://globaleconomicanalysis.blogspot.com/2013/07/spain-levies-consumption-tax-on-sunlight.html

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Yaltsays:July 26, 2013 at 10:07 am

What good could a busted city budget possibly be to local business leaders?

http://www.chicagoreader.com/chicago/fail-parking-meters-lease-deal/Content?oid=1098561

http://www.chicagoreader.com/chicago/one-billion-dollars-parking-meter-fiasco-part-two/Content?oid=1123046

http://www.chicagoreader.com/chicago/parking-meter-fiasco-part-three/Content?oid=1127436

[or, if you want the short version of all this:http://www.chicagoreader.com/Bleader/archives/2009/05/18/parking-meters--the-easy-version]

Im not sure what theyre going to lease out nextthe libraries? the school system? streets andsan? but Im sure the deals already put together and is just waiting on a crisis to force it through.

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petridish says:

July 26, 2013 at 10:32 am

My Kind of Town

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NotTimothyGeithnersays:

July 26, 2013 at 12:29 pm

Humans are almost irrational by nature. What might rationally make sense for a businessover the long term doesnt necessarily fit with the neo-religious views of the moderncapitalist/neo-liberal/fascist. Cutting taxes may spur growth in the short term, but the longterm effects are often ignored in favor of religious fervor.

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http://globaleconomicanalysis.blogspot.com/2013/07/spain-levies-consumption-tax-on-sunlight.htmlhttp://globaleconomicanalysis.blogspot.com/2013/07/spain-levies-consumption-tax-on-sunlight.htmlhttp://globaleconomicanalysis.blogspot.com/2013/07/spain-levies-consumption-tax-on-sunlight.htmlhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318353#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318353#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318420http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318420http://www.chicagoreader.com/chicago/fail-parking-meters-lease-deal/Content?oid=1098561http://www.chicagoreader.com/chicago/fail-parking-meters-lease-deal/Content?oid=1098561http://www.chicagoreader.com/chicago/one-billion-dollars-parking-meter-fiasco-part-two/Content?oid=1123046http://www.chicagoreader.com/chicago/one-billion-dollars-parking-meter-fiasco-part-two/Content?oid=1123046http://www.chicagoreader.com/chicago/one-billion-dollars-parking-meter-fiasco-part-two/Content?oid=1123046http://www.chicagoreader.com/chicago/parking-meter-fiasco-part-three/Content?oid=1127436http://www.chicagoreader.com/chicago/parking-meter-fiasco-part-three/Content?oid=1127436http://www.chicagoreader.com/Bleader/archives/2009/05/18/parking-meters--the-easy-versionhttp://www.chicagoreader.com/Bleader/archives/2009/05/18/parking-meters--the-easy-versionhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318420#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318420#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318442http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318442http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318442#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318442#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318518http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318518http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318518#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318518#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318518#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318518http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318442#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318442http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318420#respondhttp://www.chicagoreader.com/Bleader/archives/2009/05/18/parking-meters--the-easy-versionhttp://www.chicagoreader.com/chicago/parking-meter-fiasco-part-three/Content?oid=1127436http://www.chicagoreader.com/chicago/one-billion-dollars-parking-meter-fiasco-part-two/Content?oid=1123046http://www.chicagoreader.com/chicago/one-billion-dollars-parking-meter-fiasco-part-two/Content?oid=1123046http://www.chicagoreader.com/chicago/fail-parking-meters-lease-deal/Content?oid=1098561http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318420http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318353#respondhttp://globaleconomicanalysis.blogspot.com/2013/07/spain-levies-consumption-tax-on-sunlight.htmlhttp://globaleconomicanalysis.blogspot.com/2013/07/spain-levies-consumption-tax-on-sunlight.html

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o Yaltsays:July 26, 2013 at 1:01 pm

Buying public revenue flows at 15% of their NPV, with extremely favorable leaseterms, seems to make pretty good business sense to meno neoliberal ideologyrequired.

Its the other side of the deal that deserves some examination.

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Yaltsays:July 26, 2013 at 2:10 pm

Just to be clear, I dont think the people on the other side of the transactionare behaving irrationally either. Sellng off public assets at a steep loss,then taking a cushy job with one of the firms that gained from the deal youpushed throughwhats irrational about that?

If corrupton is legal, rational economic actors will make use of thatlegality.

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optimadersays:

July 26, 2013 at 3:39 pm

It was the innumerate Chicago City Council and Mayor Daley that stovepiped theChicago Parking meter revenue stream give away debacle without professional council.

Quite frankly, I am very surprised that people dont enmasse reject it and put the metersinto an inoperative condition.

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o Yaltsays:July 26, 2013 at 5:40 pm

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As I recall, the professional counsel that put together the parking meter deal (andthe Skyway deal and the downtown garage deal) put Daley on their payroll withinweeks of his departure from office.

I dont really think of Emanuels as a new administration. Its the same dynasty,

the same m.o.

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optimadersays:July 26, 2013 at 6:40 pm

put Daley on their payroll within weeks of his departure from office.

Yes I believe thats correct. What I meant was a counsel representing theinterests of the City. I still think he should be prosecuted, might notconvict him but it would be correct to try.

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washunate says:July 26, 2013 at 10:31 am

I love that Rahm is still the gift that keeps on giving.

Cities like Chicago help us see demonstrably that the problem in this country is not the GOP orrural America or evangelical Christians or flyover country or the 2nd amendment or whatever. Itis the leadership of the Democratic party that is destroying our republic, one city budget andpublic private partnership and charter school and union busting act at a time.

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Montanamavensays:

July 26, 2013 at 3:11 pm

Most astute comment. It also wasnt the Republican mayors that brutally drove out theOccupiers. Glen Ford over at The Black Agenda Report has a great essay on Detroit andNaomi Kleins Disaster Capitalism. If you think its just about black urban dwellers orteachers, think again.http://www.blackagendareport.com/content/detroit-bell-tolls-all-us

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o washunate says:July 26, 2013 at 6:00 pm

Thanks, and good link.

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Carla says:

July 26, 2013 at 7:37 pm

A-MEN!

Not that the GOP or rural Americans or evangelical Christians or flyover country or the(perversion of) the 2nd amendment are immaterial, elements of them are all pretty toxic,but it is really the Democratic Party that has relentlessly dismantled our country, fromClinton onward. And Rahm is the uber-Democrat.

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Lambert Strethersays:July 26, 2013 at 11:33 am

Its interesting to look atMoodys top shareholders, and wondering which of them got a cut fromthe deal.

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Wolverine says:July 26, 2013 at 12:34 pm

See what happens in a one party (Democrat) state.Now if Barry succeeds with his Lebensraumpolicy for those 11 million illegal immmigrants what effect do you think that will have on thegood citizens of Chicago?I am sure all those Democrat idealogues who will lose 90 cents on the Dollar in their pensions

will look forward to competing with the recipients of Barrys racist,anti American Lebensraumpolicy (otherwise known under its decontaminated title ;Comprehensive Immigration Reform)ascheck out clerks at Wal Mart to make up the shortfall in their decimated pensions.

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Lambert Strethersays:July 26, 2013 at 12:56 pm

http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318660http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318660http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318660#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318660#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318679http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318679http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318679#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318679#respondhttp://www.correntewire.com/http://www.correntewire.com/http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318486http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318486http://finance.yahoo.com/q/mh?s=MCO+Major+Holdershttp://finance.yahoo.com/q/mh?s=MCO+Major+Holdershttp://finance.yahoo.com/q/mh?s=MCO+Major+Holdershttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318486#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318486#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318522http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318522http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318522#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318522#respondhttp://www.correntewire.com/http://www.correntewire.com/http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318530http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318530http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318530http://www.correntewire.com/http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318522#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318522http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318486#respondhttp://finance.yahoo.com/q/mh?s=MCO+Major+Holdershttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318486http://www.correntewire.com/http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318679#respondhtt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This looks like the play the powers that be are using to privatize the Post Office, with Congressplaying the role of Moodys: Saddle the Post Office with pension obligations no other entitycomes close to having, claim the Post Office is in financial trouble, then break it up and sell itoff. The real estate alone is surely worth billions. Even if the American people still own it

* * *

Would be better, of course, to use the Post Office bricks and mortar for a Post Office bank, andfree community WiFi (and heck, why not radio?) as well. If the powers that be were interested inanything other than looting, such proposals would already have been made.

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RanDominosays:

July 26, 2013 at 3:12 pm

And if the postal workers were interested in anything more than merely having fairmasters then they could buy them themselves and operate the USPS as a workercooperative. But they too are stuck in the peasant mentality of whats the least I haveto do to not get in trouble?.

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kevinearicksays:July 26, 2013 at 4:13 pm

Is it really any different than regulating scarcity in the ocean (forest) and having the fishermen(loggers) sell their fish (trees) to Japan instead of to the locals, thinking they are making a greaterprofit, until there are no fishermen (loggers)? Why is it that the non-profit, tax-exemptcorporations control the land, at a massive discount? What happens when that land leaves thenon-profit?If all speculative profit from the stock market ends up in RE.

Who the f- is the public anyway?

So, you are setting pricelocal demand is 20% of supply, but you can double your money thisyear if you only sell 10% locally. What do you do? What is the effect of corporate behavior onpersonal behavior as a result? What happens to the local economy?

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Charles Duran says:July 26, 2013 at 4:27 pm

http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318530#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318530#respondhttp://news.infoshop.org/http://news.infoshop.org/http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318591http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318591http://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318591#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html?replytocom=1318591#respondhttp://www.nakedcapitalism.com/2013/07/chicago-ceo-club-with-rahm-and-pritzkers-on-board-pushed-for-chicago-bond-downgrade-whacking-local-investors-and-pension-holders.html#comment-1318620http: