Chicago May Be the Next Major U.S. City to Declare Bankruptcy

The grim situation that should be on everyone’s minds, you’d think.

The city of Chicago is in dire fiscal and financial straits with an almost billion dollar budget deficit, bonds rated at junk status or below, numerous extremely costly legal judgments, a shrinking tax base, and unfunded public pension liabilities to the tune of an astonishing $42 billion.

Other than that, it’s a great place to live.

So?

The state of Illinois has its own financial troubles, so the city can expect little or no help there. And good luck getting a federal bailout through the GOP Senate and signed by a president who’s been called a “racist” by the mayor.

The shrinking tax base is clear proof that citizens are already over taxed. And since it’s Democrats in charge, there won’t be much cutting of city services.

The only option for Mayor Lori Lightfoot and the city council is restructuring the city’s massive debts. In other words: bankruptcy.

Which as I have understood it, means trouble. For all of us, we presume, though for some more than others.

via Chicago May Be the Next Major U.S. City to Declare Bankruptcy

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