Thursday, December 29, 2016

This is just the unfunded part

The Chicago Teachers' Pension Fund (CTPF) may be considerably less funded than its trustees claim; as a result, Chicago homeowners’ properties could face significant drops in value.In 2015, the situation was so dire that the law firm of Jones Day recommended -- in a recently released private email to Mayor Rahm Emmanuel -- that the mayor use bankruptcy as a “tool” to escape the Chicago Public School’s pension liabilities.According to public reports by the Chicago Teachers Union and the state of Illinois, the fund’s nearly $9 billion in unfunded liabilities equates to approximately $7,500 of unseen debt for each of Chicago’s 1.2 million households. This invisible liability does not show up on a title, but it has a significant impact on a property’s value.
The funded part is likely another ten grand, and the funded part is causing homeowners and business to evacuate the state. Since the funded part is unaffordable, the unfunded party will only grow until Rahm is the only person left in the city.

California has the same problem, or had.  The funded part was unaffordable and small businesses have to shut down and leave the state.  Our problem is that Texas voters seem a bit nutty, and Texas may no longer be safe for business.  The entire country may simply be bankrupt with no place for business to run.

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