Democrat Success: Chicago "Nears Fiscal Free Fall"

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    Feb 28, 2015 3:05 AM GMT
    Time to raise taxes (again).

    Chicago nears fiscal free fall with latest downgrade

    CHICAGO (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.
  • tj85016

    Posts: 4123

    Feb 28, 2015 3:18 AM GMT
    Rahm is just a hack, political thug like Chris Christie (NJ has been downgraded 7 times since Christie took office)