Obama’s Hometown Chicago Gets Another Downgrading From Moody’s Investor Service…

Running out of other people’s money….

rahm-emanuel-6(Reuters) – Chicago drew closer to a fiscal free fall on Friday with a rating downgrade from Moody’s Investors Service that could trigger the immediate termination of four interest-rate swap agreements, costing the city about $58 million and raising the prospect of more broken swaps contracts.

The downgrade to Baa2, just two steps above junk, and a warning the rating could fall further still, means the third-biggest U.S. city could face even higher costs in the future if banks choose to terminate other interest-rate hedges against fluctuations in interest rates.

All told, Chicago holds swaps contracts covering $2.67 billion in debt, according to a disclosure late last year.

“This is an unfortunate wake-up call for anyone still asleep over the fiscal cliff facing the city of Chicago,” said Laurence Msall, president of the Chicago-based government finance watchdog, The Civic Federation. (read more)

Chicago 7

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14 Responses to Obama’s Hometown Chicago Gets Another Downgrading From Moody’s Investor Service…

  1. lovemygirl says:

    Which parade was that one in the picture?


    • pozzo says:

      City of Chicago running of the bulls*** parade

      Liked by 1 person

    • EdWatts says:

      I don’t know, but, judging from the flags in evidence, I would think that most of Chicago’s problems could have been solved be making a couple of napalm runs up that street, one from each end, during the “festivities”!


    • rashomon says:

      I believe it was the protest against NATO. There are so many protests, the participants often get them confused and simply pull out the old signage to reprotest old dissatisfactions. Eventually, they become one, enormous anti-America throng not knowing what the protest du jour is.


  2. John Galt says:

    The future of USA under Obozo.


    • Kitty Smith says:

      This has the smell of an o-bama – Rahm setup for a major bailout/payoff to cronies and the dumbocrat party. Rahm turns Chicago into Greece with book juggling and preferential spending on dumbocrat union contracts. Then o-bama comes to the rescue with a huge cash infusion of federal dollars. In further return, union project contractors fill jobs with new Hispanic union members, thus displacing blacks and whites from those jobs. The Hispanics then, in turn, support the dumbocrats with their voting bloc power.

      The first half of the scam is what the mafia calls a “bust out” where a concern, in this case the entire municipality of Chicago, is consumed from the inside out. The second half is the same Solyndra-type scam we saw where money is invested in a losing proposition because it’s funneled to the dumbocrat political machine instead of productivity and efficiency.

      Money-laundering of taxpayer dollars at its finest.

      Liked by 1 person

      • lastConservinIllinois? says:

        Kitty smith you just nailed the situation directly, accurately, and succinctly.

        Arw you the ghost of Maggie Daley?


  3. Shibbity Boo says:

    Private sector accounting being applied to Government‽ What will you bitter clingers try next‽


  4. Sharon says:

    I suppose that means that Chicago will not be able to contribute very many Jobs 4 Jihadis.

    Liked by 1 person

    • rashomon says:

      Oh no, the SEIU or ACORN derivatives or CPUSA will step up. The Chicago-Way includes many, many, many possibilities.


    • 1American1st says:

      Maybe obama could declare Chicago a “Sanctuary City” and send about 5 million Illegal Aliens from the surplus in Texas, then he could declare it a disaster & bail his buddy Rahm out.
      Only one problem, once you get those scoundrels embedded in your city you play hell getting them out.


  5. Imagine a basketball bracket, if you will. American cities, coached by Democrats, vying to be the next Detroit, to utterly and completely destroy a city.

    I think Philly and Chicago are now up for the Title.

    Liked by 1 person

  6. czarowniczy says:

    Yeah, all sorts of fiscal crap has befallen Louisiana since the state dumped Landrieu in November and Jindal’s been hinted at running for the WH or VP. The state under Jindal’s not managed to break its history of fiscal instability (polite way of saying incompetent) and got its Moody’s rating changed from a “stable” to “negative” credit outlook. Only Louisiana could breathe a sigh of relief at that and say it was a good sign.
    State’s looking at sound and responsible ways of increasing revenue – not by stopping the hemorrhage of tax dollars to Good Old Boys, mind you – by raising the cigarette tax (not the booze tax as that might PO tourists), heavily paring back funding for higher education and medical care, but not reducing the generous tax credits to fly-by-night Hollyork swindlers coming to Louisiana to make movies and TV series.
    Ain’t as much to do with Republican or DemocRAT, to me it;s the basic dishonesty of politicians. Back to my proposition that crooked pols found guilty by a public trial be publicly stoned to death by those whose tax $$$%$ have been stolen. Probably won’t do much t improve the honesty of potential pols but should at least provide a nice turnover.


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