In theory, one of the lessons from the financial crisis was that taxpayers should not be on the hook for the reckless actions of others. With that in mind, Chicago politicians voted unanimously today to hand the bill for any cost overruns associated with the 2016 Olympics to its residents, should the Windy City win the bid. As overspending for host cities has almost become an Olympic sport itself, Mayor Richard Daley would rather take his chances on being able to control construction costs in Chicago than be left behind in the hunt for the games.
The 49-0 vote also put an end to a rare moment of vocal council dissent this summer when Daley promised IOC officials the city would give a blanket backing against any Olympic shortfalls.
The mayor previously had taken a hard line against agreeing to such a provision, suggesting that the city’s liability would be limited to $500 million. But Daley’s switch came after Chicago was the only one of the four finalists without a full government guarantee.
Based on this, it appears there’s another lesson from the crisis that has yet to be learned. While people in Montreal undoubtedly enjoyed reliving those memorable weeks in the summer of ’76 for the 30 years they were paying for Olympic Stadium, taxpayers in Chicago may not be so interested in funding short term gains in the long term.
One word: “Cubs”.
What the hell does that mean?
One word: “BLANUS”.
Gregorio,
Nobody here cares about Chicago. Take a hike.
Montreal called it the Big Owe, even the Montreal Expos hated it
@4 – Gregorio, imagine that…a Greg Oreo. It would be filled with nothing, cost nothing, nothing would eat it, and nothing would be different in the world because of it.
Conclusion: Double stuff oreos have more appeal than Greg.
Greg is the “Second City” of DB: overlooked, hated upon, yet a jewel to those who know him- see: Greg’s mom.
Prince Albert
Its really not a serious problem. Mayor Daley has many more highways to sell off in case he needs to come up with some serious cash.
Make ole’ Kenny pay for it
@ 4 – fuck you
Greg,
This is a blog about finance, not politics. Just because a story involves spending money, or even securities, doesn’t make it relevant material (unless you posses the talent to make it relevant, which you do not).
shut up greg…didn’t even read
@6 I feel like you are implying that double stuff oreos are low on the “things people care about” list…if that is the case, go right ahead and fuck yourself…double stuff oreos are the shit. that is all.
Cubs suck
Greg, the vote was yesterday. The story you linked to was published today.
Thanks for trying tho
the ideal question is: How is Goldman going to profit from it, and how can I get in?
Wake up the Gimp…
Since when does Chicago have a city council?
Great…the one item about Montreal has to be about our big ol’ white elephant. Thanks Bess