As Chicago's municipal bonds continue to be downgraded by credit rating agencies, Sitka Pacific Capital Management's Mike "Mish" Shedlock, said something has to be done on the political level.
The city's unfunded pension liabilities as well as liquidity problems have led to a series of recent downgrades. In addition, a recent by the Illinois state Supreme Court has determined pension reform to be unconstitutional.
"The Illinois legislature could, and should in my opinion, pass a law allowing municipalities to go bankrupt," Shedlock said. "That is actually what Gov. [Bruce] Rauner wants the Chicago Board of Education to do, but of course Mayor Rahm Emanuel doesn't want that at all."