This is why you are broke.

On the same day that Chicago Mayor Rahm Emanuel publically discusses service cuts and tax increases to close a looming $636 million budget deficit, the Chicago City Council advances a city ordinance that would spend $7.7 million dollars to purchase 21 acres of Rosehill Cemetery.  (The cemetery is owned by Service Corporation International).

The purchase of this property is “essential to prevent the area -- which includes no graves -- from being developed into a retail or housing project”, according to Alderman Patrick O'Connor, (40^th ward).  The city's portion of the cost will come from $3 million in tax increment financing, and $4.7 million in bond money, according to Nelson Chueng of the city's Department of Housing and Economic Development.

When did the city council gain the authority to purchase land to prevent retail or residential development?

Not only is the city flushing $7.7 million down the drain for the cost to purchase this land but the city is committing to a perpetual cost to maintain this property.  Note that the city is borrowing the money to pay for this.  Also, what tax increment financing will result from converting this land to public space?

do as we say, not as we do

The following article outlines some of the personal wealth of the president’s advisors and staff:

http://www.chicagotribune.com/news/nationworld/chi-white-house-wealthapr09,0,3609518.story

I am impressed with the investment advice that we can garner from analyzing our nation’s top decision makers’ portfolios. These paragraphs are very educational:

Leading the Chicago pack in investment portfolio size is Emanuel. The White House chief of staff reported 2008 investment income of at least $168,107 on a portfolio worth between $4.5 million and $11 million.

After leaving the Clinton White House — and before running for Congress from Chicago's North Side — Emanuel made more than $16 million in 21/2 years as an investment banker.

Many of his investments are now in municipal bonds, a favored choice of the wealthy because their interest is tax-exempt. Emanuel has dozens of the bonds, whose issuers range from McHenry County to the Northeast Nebraska Solid Waste Coalition.

The moral of this story is to invest in municipal bonds so that you will not be affected by the orgy of new taxes that are being foisted upon the productive segment of our society.

The (bleeping) golden bargaining chip

The Blagojevich indictments have captured many of the former governor’s closest advisors and friends including his brother. Absent from the list of indictments is his wife Patricia.

http://www.chicagotribune.com/news/local/chi-blago-whatnext-bd-05-apr05,0,7070058.story

The reporters who wrote the above story are naive in their speculation about the Justice Departments motives for leaving Patti out of the list of indictments. This speculation is summed up in the following paragraph:

“Many have speculated the government has not yet charged Patricia Blagojevich in a strategic move to offer Rod Blagojevich the chance to spare her by pleading guilty and avoiding a trial. Others have said they think sparing Patricia Blagojevich could be viewed as a good public-relations move because prosecutors do not want to appear to be threatening to take both parents from the Blagojevich children.”

I my opinion the US Attorney’s office could care less about the PR related to taking away both children. I think that the real plot here is whether or not the Justice Department will allow Rod Blagojevich to plea bargain for a reduced sentence by testifying against larger criminal targets. If the Justice Department is squeezing Blagojevich to testify against Mayor Richard Daley or President Obama then they will hold out the carrot of leaving Patti out of the indictments.

On the other hand if the Justice Department is being pressured to keep any higher level politicians out of this investigation they can use Patti as a bargaining chip to keep Rod quiet about Daley or Obama. Under this scenario the US Attorney pressures Rod to plead guilty, Patti remains unindicted and there will be no further investigations.

The other possible explanation for leaving Patti out of the prosecution is her father’s political clout. Patricia Blagojevich is the daughter of Chicago Alderman Richard Mell. Mell has been a Chicago Alderman since 1975. Alderman Mell played a significant role in organizing the field operations for Rahm Emanuel's 2002 election to Congress.

Rahm Emanuel and Freddie Mac

The following is a very interesting article about our White House Chief of Staff:

http://www.chicagotribune.com/news/politics/obama/chi-rahm-emanuel-profit-26-mar26,0,5682373.story?page=1

Some of the highlights from this article:

1. Emanuel earned $16 million in a three-year interlude as an investment banker (hedge fund manager).

2. Emanuel made at least $320,000 from a 14-month stint as a director of Freddie Mac.

3. During Emanuel’s term as director Freddie Mac engaged in accounting fraud.

4. During Emanuel’s term as director Freddie Mac put policies in place that caused the firm to fail and require a Federal bailout.

5. After leaving Freddie Mac Emanuel received campaign contributions from Freddie Mac, and its officers.

6. Now Emanuel is drafting federal government policies concerning the current bailout and future regulation of Freddie Mac and the hedge fund industry.