When "investors" / speculators stop giving Chicago & Illinois money, could we have a panic sale of bonds? Chicago can go through a bankruptcy process, Illinois can't declare itself bankrupt. I see the demands for pension payments to slowly apply more pressure. How much is needed for the dam to burst? And when?
Chicago could THEORETICALLY go through a bankruptcy process, but it requires the approval of the Illinois legislature, and we're still pretty far from the Illinois legislature allowing that to go forward.
While Illinois cannot go through a legal bankruptcy process, it can default on its promises.
In the past, both Chicago and Illinois have had to step back from bond sales when the muni market balked at the offers (or were going to bid an interest rate spread that neither Illinois/Chicago liked). So even if the Chicago bond offer were approved by the City Council... it doesn't mean that the sale would go forward in a manner that the city would like.
When "investors" / speculators stop giving Chicago & Illinois money, could we have a panic sale of bonds? Chicago can go through a bankruptcy process, Illinois can't declare itself bankrupt. I see the demands for pension payments to slowly apply more pressure. How much is needed for the dam to burst? And when?
Chicago could THEORETICALLY go through a bankruptcy process, but it requires the approval of the Illinois legislature, and we're still pretty far from the Illinois legislature allowing that to go forward.
While Illinois cannot go through a legal bankruptcy process, it can default on its promises.
In the past, both Chicago and Illinois have had to step back from bond sales when the muni market balked at the offers (or were going to bid an interest rate spread that neither Illinois/Chicago liked). So even if the Chicago bond offer were approved by the City Council... it doesn't mean that the sale would go forward in a manner that the city would like.