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Originally Posted by Garynewman
Find yourself the least popular politician in state history and need to pay for clout? Pass an $830 million bond deal with no payments on the principal for 20 years. The latter is what Chicago Mayor Brandon Johnson did on Feb. 26."
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I think this is bond deal is a very bad idea and have told my Alderperson as much. That said,
10 years ago, Rahm proposed borrowing with an even longer deferred payment schedule.
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The latest general obligation bond proposal from Chicago Mayor Rahm Emanuel could have the cash-strapped city selling up to $500 million of capital appreciation bonds (CABs), a form of debt that government finance experts say could be costly and risky.
Richard Ciccarone, president and CEO of Merritt Research Services, said Thursday the move would allow the city to "kick the can down the road" by deferring debt service payments for as long as 40 years.
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