Category: Public pensions

Next up, Chicago: Part 3, Get their attention

17 September, 2013 (11:22) | Bankruptcy, Capital markets, Chicago, Cities, Detroit, Economics, Municipal bankruptcy, Pensions, Public pensions, Real estate taxes, US News |

By:David A. Smith   [Continued from yesterday’s Part 2 and the preceding Part 1.]   As we’ve seen in the preceding parts, Chicago Mayor Rahm Emanuel, a man not known as a fiscal conservative, has been taking a firm line with Chicago’s public employee unions, including its public school teachers.   Sources for this post   […]

Next up, Chicago: Part 1, Now it’s panic time

13 September, 2013 (11:19) | Bankruptcy, Capital markets, Chicago, Cities, Detroit, Economics, Municipal bankruptcy, Pensions, Public pensions, Real estate taxes, US News |

By:David A. Smith   What, you’re surprised?   Actually, I’m upset   Detroit has already filed the nation’s biggest municipal bankruptcy ever, and San Bernardino’s bankruptcy filing has been allowed (over the objections of the CalPERS evil empire).  Along with many others (like Jefferson County, Harrisburg, and more), both cities succumbed to the Law of […]

Half of something is better than all of nothing: Part 2, full faith and no credit?

9 July, 2013 (09:00) | Bankruptcy, Cities, Detroit, Eminent domain, Markets, Municipal bankruptcy, Municipal bonds, Public pensions, Recapitalization, US News |

[Continued from yesterday’s Part 1]   By:David A. Smith   Yesterday’s post describe Detroit emergency manager Kevyn Orr’s recapitalization plan established that he’s recommending strategy that seems to fly in the face of well-established legal precedents, as well as sound strategy for municipal bond management in the capital markets.   Sources used in this post […]

Half of something is better than all of nothing: Part 1, ten cents on the dollar

8 July, 2013 (09:45) | Bankruptcy, Cities, Detroit, Eminent domain, Markets, Municipal bankruptcy, Municipal bonds, Public pensions, Recapitalization, US News |

By:David A. Smith   Detroit’s new emergency manager, Kevyn Orr, has unveiled a recapitalization plan for the city that is nothing if not bold and comprehensive.  In effect, like the brilliant Dave Unkovic of Harrisburg, he is exploiting his short-term political and legal capital to the full by putting forward a revolutionary approach that, by […]