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Chicago Credit Risk Soars On Rahm Emanuel's Re-Election

Tyler Durden's picture




 

It appears the re-election of Rahm Emanuel as Chicago Mayor has done nothing to assuage concerns about the city's insolvency. As Emanuel's victory became more assured, credit risk (measured by the spread between Chicago Muni yields and Treasury yields) has soared from 180bps to over 240bps.

 

Chart: Bloomberg

Furthermore, it has accelerated even more since the April 7th election. Recent statements by S&P that if the city fails to articulate & implement a plan by the end of 2015 to sustainably fund pension contributions, or if it substantially draws down reserves to fund contributions, they will likely lower the rating; has not helped (given that Moody's already have Chicago at Baa2 - just 2 notches above junk).

Chart: The Economist

 

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Sat, 04/18/2015 - 13:22 | 6006474 JungleCat
JungleCat's picture

Just raise the taxes.

Sat, 04/18/2015 - 13:24 | 6006482 nopalito
nopalito's picture

Or simply don't retire. Work 'til you drop.

Sat, 04/18/2015 - 13:27 | 6006488 JungleCat
JungleCat's picture

I say "do both". Require government permission before you stop working and paying taxes.

Getting back to my idea for a second:riase the taxes until we find the optimal tax rate that maximizes tax revenue. Keynes would've. People exist to be farmed for taxes.

Sat, 04/18/2015 - 13:33 | 6006508 Pheonyte
Pheonyte's picture

if the city fails to articulate & implement a plan by the end of 1015

Better a thousand years late than never.

Sat, 04/18/2015 - 13:44 | 6006529 Againstthelie
Againstthelie's picture

American voting sheeple obviously love Zionist bosses like they love their Zio-media.

Sat, 04/18/2015 - 14:36 | 6006670 max2205
max2205's picture

Glad I got the Fuck out of there!

Last one out turn out the lights 

Sat, 04/18/2015 - 15:49 | 6006832 kchrisc
kchrisc's picture

It has been fun to watch the demographic shifts in Chicago.

The "browns" are leaving as fast as they can, while the blacks just continue to marinate in their self-made cesspools, and Jews "comeback" and build new multi-lot homes. White kids from Ohio are not coming much anymore, or are leaving for southern states like Texas, and the old white Poles are dying off.

Soon, as a friend of mine is fond of saying, "Chicago will be just 'black and Jew.'"

The banksters need to repay us.

Sat, 04/18/2015 - 17:47 | 6007063 Againstthelie
Againstthelie's picture

GOING BACK TO MY ROOTS?

Research shows that more than 90% of the African slave trade was controlled by Jews.

So black Americans are just electing their old masters again that transferred them to America...

Also a way to say "Thank you!".

 

Sat, 04/18/2015 - 14:50 | 6006702 Oldwood
Oldwood's picture

I think they already did, just like Detroit. Its like suggesting a crack addict's predicament is to find the optimal dose of drugs...the optimal being the next higher dose, until overdose is reached. As with drug addicts, their tolerance level rises to accommodate each successive increase in dose so that the body loses its ability to sense when an overdose is imminent.

Sat, 04/18/2015 - 16:11 | 6006872 mrdenis
mrdenis's picture

What would Corzine do ..........?

Sun, 04/19/2015 - 05:10 | 6007984 chilli sauce
chilli sauce's picture

I freelance over th? internet and earn about 80-85$ an hour. I was without a job for 7 months but last month my paycheck with big fat bonus was $15000 just working on my computer from my home for 5-6 hours. Here's what i have been doing... www.globe-report.com

Sun, 04/19/2015 - 09:43 | 6008213 Mi Naem
Mi Naem's picture

Are the Tylers overwhelmed by the number and variety of internet attacks on their site,

too disinterested to coordinate an effective response,

or just pissing on the floor in their own house?

Sat, 04/18/2015 - 13:25 | 6006484 Bumbu Sauce
Bumbu Sauce's picture

They deserve nothing but the best.  May Chitcago collapse in a fashion that makes Detroit look like Shangri-La.

Sat, 04/18/2015 - 13:32 | 6006507 Bumbu Sauce
Bumbu Sauce's picture

Year To Date
Shot & Killed: 89
Shot & Wounded: 486
Total Shot: 575
Total Homicides: 104

Sat, 04/18/2015 - 13:34 | 6006515 Mister Delicious
Mister Delicious's picture

All the fault of "white privilege," I have no doubt.

Sat, 04/18/2015 - 14:51 | 6006705 Oldwood
Oldwood's picture

definitely what they want us to believe.

Sat, 04/18/2015 - 14:19 | 6006623 Red Raspberry
Red Raspberry's picture

http://heyjackass.com/

 

breaks it all down.

Sat, 04/18/2015 - 16:00 | 6006856 I M DeMan
I M DeMan's picture

mmm ... they sound "exceptional" in the Windy City.

Sat, 04/18/2015 - 13:26 | 6006487 B2u
B2u's picture

I heard they want to raise taxes on all people that moved from Chicago.

Sat, 04/18/2015 - 13:28 | 6006494 kadoka
kadoka's picture

Little late to get this done by the end of 1015 don't you think?

Sat, 04/18/2015 - 13:33 | 6006510 KnuckleDragger-X
KnuckleDragger-X's picture

Chicago's problem is they've got so many sets of cooked books floating around that nobody knows exactly how bad it really is, but when they hit bankuptcy court it takes years just to figure out the roster of players.....

Sat, 04/18/2015 - 14:04 | 6006579 Never One Roach
Never One Roach's picture

Generous teacher pensions continue as Illinois’ financial crisis worsens

 

Meet Neil Codell an Illinois educator with a $26 million state pension

Look for 'Codell, Neil C' -- 4th from the top of the list.  His estimated career pension is $26,661,604.  That's almost $27 million for a single administrator within just one local Illinois school system (Niles, to be exact).


 

http://www.washingtontimes.com/news/2014/sep/1/generous-teacher-pensions-continue-as-illinois-fin/?page=all

 

 

http://dailybail.com/home/make-this-story-go-viral-you-thought-california-state-pensio.html

 

Some pretty sweet retirement packages they have, verdad.

Sat, 04/18/2015 - 14:31 | 6006648 Amy G. Dala
Amy G. Dala's picture

But Chicago Public Schools is regarded as the finest educational institution in this or any other hemisphere, preparing a new generation of doctors, lawyers and astronauts to lead in the new century.

$27M pension?  Remember . . .IT'S FOR OUR CHILDREN.  WE MUST ALWAYS THINK ABOUT THE FUCKING CHILDREN!

Sat, 04/18/2015 - 14:53 | 6006710 Oldwood
Oldwood's picture

If we were thinking about the children we wouldn't be burying them under infinite debt.

Sat, 04/18/2015 - 15:10 | 6006752 Amy G. Dala
Amy G. Dala's picture

The K-12 cartel will demand payment.

Sat, 04/18/2015 - 15:18 | 6006773 I M DeMan
I M DeMan's picture

Yo! Chicago's public schools gots to be near da top:

 

Chicago's Schools, Police Work To Stem Violence

 

http://www.npr.org/2011/03/21/132678405/chicagos-schools-police-work-to-...

Sat, 04/18/2015 - 19:12 | 6007281 TeethVillage88s
TeethVillage88s's picture

King Rahmy Should look deeply at this embarrassment, but the School Lobby probably just re-Elected him Obviously!

- VENDOR SPENDING

- Nearly $36 billion in disclosed spending was aggregated and delineated by school district covering the years 2011, 2012, and 2013. The top vendor industries were banks, busing companies, construction companies, health insurance, and food service providers

- Another egregious example of vendor spending continues to be the tens of millions spent on taxi cabs. In 2013, over $11.1 million was spent on taxi cabs with over $71,000,000 in payments since 2006. In 2012, we found that 47 Northern Illinois school districts didn’t follow bid - contracting requirements and an NBC5 investigation discovered 1 in 10 drivers of the school taxi cabs
had an arrest record.

- At least $55,000,000 million was paid out to “consultants” by Illinois school districts in the year 2013. With over 16,000 administrators and educators earning a six - figure salary, why were so many extra experts needed?

- Didn't see the $26 Million to one guy yet, but truth is stranger than fiction

- Should be Racketteering Investigations all across the USA, Hello FBI???

https://www.openthebooks.com/assets/1/7/Open_The_Books-_IL_School_Distri...

Sat, 04/18/2015 - 14:52 | 6006707 Amy G. Dala
Amy G. Dala's picture

Knucks, I don't think the charts and math above include their billions in pension obligation bonds.  So far, the bond insurers don't seem worried. 

I mean, if I wrote a policy on a house that was running a meth lab in the basement, I would be concerned.

Sat, 04/18/2015 - 15:44 | 6006828 The Repentant C...
The Repentant Curmudgeon's picture

And what is the motivation for them to even try?  Want to get thrown out of office?  Just come up with an austerity plan.

Sat, 04/18/2015 - 13:39 | 6006525 A Lunatic
A Lunatic's picture

Fuget aboud it......

Sat, 04/18/2015 - 13:42 | 6006528 disabledvet
disabledvet's picture

The Global War on Terriers continues...

Sat, 04/18/2015 - 14:55 | 6006717 Oldwood
Oldwood's picture

The Boston Terriers?

I thought it was the Afghan hounds we hated...

Sat, 04/18/2015 - 13:47 | 6006540 Mister Delicious
Sat, 04/18/2015 - 13:53 | 6006554 Mister Delicious
Mister Delicious's picture

"he Emanuel family name was Auerbach until 1936, although they are not related to the famous rabbinical family of Germany and Krakow named Auerbach. Ben said that his family was from Russia. (Well, the pale but not quite Russia.)

His father Ezekiel supposedly changed the family name to Emanuel when his son with that name died fighting Palestinians in 1936.

Many Jewish families in Palestine changed their names to make themselves sound like they actually came from Palestine. And you wondered where all those Jews disappeared during World War II?

Sheinerman became Sharon, Yezernitzky became Shamir, and Auerbach became Emanuel, and so on. And then multiply by a few hundred thousand. Voila! Millions of European Jews vanish from the face of the Earth - and build new lives in Palestine.

Ben told me that Emanuel Auerbach had died from "shrapnel in the knee" in 1936. When I asked him today for details on this incident he suddenly decided that he did not want to do an interview on the phone and hung up. "

- http://www.rense.com/general74/demoem.htm

Sat, 04/18/2015 - 13:57 | 6006563 Fun Facts
Fun Facts's picture

Emanuel's father was a bona fide zio terrorist.

He blew up busses full of people among other things.

Rahm Emanuel's Father Specialized in Bus Bombings in Palestine
http://www.salem-news.com/articles/january262011/emanuel-palestine.php

Sat, 04/18/2015 - 15:44 | 6006830 messystateofaffairs
messystateofaffairs's picture

How dare you, Jews are not terrorists, they are chosen.

Sat, 04/18/2015 - 18:49 | 6007223 TeethVillage88s
TeethVillage88s's picture

King Rahmy: AYE, It's good to be Da King!!

Sat, 04/18/2015 - 13:48 | 6006544 venturen
venturen's picture

chief Chicago buddy will just forgive all debt and Yellen will just print a couple billion for good luck. Why bother with any sanity now. 

Sat, 04/18/2015 - 14:26 | 6006636 Amy G. Dala
Amy G. Dala's picture

Naw, Chicago Buddy in Chief will call up Eric Holder, have him stick up a few banksters, problem solved.  It worked with Jamie Dimon in Detroit.

Sat, 04/18/2015 - 13:54 | 6006555 Fun Facts
Fun Facts's picture

"re election" in quotes because the polls are entirely rigged in the USA.

Sat, 04/18/2015 - 13:54 | 6006556 shovelhead
shovelhead's picture

In other news, Rahm Emanuel has repealed City taxes on Chicagos gay bathouses to stimulate the economy and in his words "Insure local patrons get more bang for the buck".

Sat, 04/18/2015 - 14:03 | 6006573 Seek_Truth
Seek_Truth's picture

I heard the latest on Rahm was he is volunteering at the fudge packing factory, pushing in stools. He keeps going in the wrong way when parking the pink cadillac in the back alley, though.

Sat, 04/18/2015 - 13:57 | 6006564 q99x2
q99x2's picture

I have the last will and testament to State Street Chicago in my possession. Unfortunately it is from 1842. Wadsworth family. But it is the real will.

They burned the place down once. Why not do it again.

Sat, 04/18/2015 - 13:58 | 6006565 joego1
joego1's picture

The sheeple say Baa 2

Sat, 04/18/2015 - 14:02 | 6006572 JamaicaJim
JamaicaJim's picture

Fucking Chicago.....stupid assholes elect a piece of shit like Emanuel....then re-elect the fucker.

They deserve his nappy ass....fools.

Sat, 04/18/2015 - 14:53 | 6006712 yogibear
yogibear's picture

They elected corrupt governors. A number of them went to prison. Sringfield is wheeling and dealing for Chicago.

Sat, 04/18/2015 - 15:36 | 6006820 messystateofaffairs
messystateofaffairs's picture

After Chicago winds up like Detroit  Rahm can go back to sharing his bottom with Barry.

Sat, 04/18/2015 - 21:42 | 6007591 NeedtoSecede
NeedtoSecede's picture

He's done such a fine job up there in Chiraq, that he should seriously consider taking on Pantsuit Cankles Lady for the Blue Team Captain in 2016.

 

Wow, what a disgraceful place this has become...

Sat, 04/18/2015 - 15:50 | 6006842 The Repentant C...
The Repentant Curmudgeon's picture

True.  But the only thing different about Chuy is that in electing him Rham would thrown out.  No one in Chicago believes there's a fix.  Like Detroit, everyone is waiting for a bailout and a bankruptcy manager that will impose whatever he's going to impose.  The politicians will be happy with that because then they can scream at the manager.

Sat, 04/18/2015 - 14:10 | 6006595 Amy G. Dala
Amy G. Dala's picture

And don't forget . . . unionized schoolteachers in Chicago were somehow allowed to "OPT OUT" of participation of social security . . . we got a pension, bitchez, we don't need that peon SS payment!

Imagine the expression on the face of a five-year-old (union member) when he realizes his ice cream cone (pension)  just fell in the gutter. 

Sat, 04/18/2015 - 14:36 | 6006667 Weaponized Innocense
Weaponized Innocense's picture

The markets seem pretty assured they're fucked with rahm.... which is interesting to see numbers get real about facts. I wasn't sure they had that ability anymore.

Sat, 04/18/2015 - 14:51 | 6006704 yogibear
yogibear's picture

Illinois in general is a tax-happy, pro-union oriented state. It's where the SEIU flocks.

SEIU as Astroturf - Protesters say, "Give up the bucks!"

"Where's our money, Save our children, give up the bucks"

https://www.youtube.com/watch?v=rSh7WUK1GDc

Sat, 04/18/2015 - 15:10 | 6006758 jonjon831983
jonjon831983's picture

"Fed may allow banks to use muni bonds to meet liquidity rules: WSJ"

 

http://www.reuters.com/article/2015/04/17/us-usa-fed-municipals-idUSKBN0...

Sat, 04/18/2015 - 15:35 | 6006816 Irving Phelps
Irving Phelps's picture

Another politically created cesspool courtesy of the black dick in DC. Stupid fucking people in Chicage deserve to get just what they voted for....idiots!

Sat, 04/18/2015 - 15:36 | 6006818 Irving Phelps
Irving Phelps's picture

Another politically created cesspool courtesy of the black dick in DC. Stupid fucking people in Chicage deserve to get just what they voted for....idiots!

Sat, 04/18/2015 - 15:42 | 6006825 The Repentant C...
The Repentant Curmudgeon's picture

The Chicago plan is as follows.  We look around and we see every city and state on the brink of pension collapse.  We think that when the collapse begins there will be a federal attempt at bailout.  First one city will receive billions of federal dollars by way of a bailout, then two cities, then five, and then....people will say "wait a minute...how can the federal government bailout the entire country???" And then the bailouts will stop.  But Chicago, being the first in line will be one of the few cities to reap the rewards of total collapse before everyone wises up.  

No one in official Chicago says this, but that's what we think.  And we aren't going to do anything to change course in the meantime.

Sat, 04/18/2015 - 16:55 | 6006955 Rellorellin
Rellorellin's picture

Chicago- The anchor baby capital of the USA. They can't build schools fast enough to house them all, while closing schools in black neighborhoods at the same time. Where do you think Barry sends all his potential Dem voters that he loads onto buses straight from Mexico. 

Sat, 04/18/2015 - 17:36 | 6007031 Equality 7-25-1
Equality 7-25-1's picture

Gangster POS put a fish in every mail box. 

Sat, 04/18/2015 - 20:14 | 6007411 Arnold
Arnold's picture

The Ratings Houses are known for their generosity.

Situation Rep: FUBAR Tango Uniform.

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