Lifecycle funds are particularly appropriate for many workers, because they reallocate investors' assets automatically as they age more equity exposure for younger investors, more reliance on bonds for older ones.
The seven community colleges are also dependent on bonds for capital improvements, half financed by the city and half by the state.
The federal tax exemption on bonds for public spending, however, is crucial to cities and counties providing basic services to their residents.
It would be administered by a newly created capital finance arm within the authority, which would use the revenue after the first year to pay debt service on bonds for the next five-year capital program.
James Grant, the editor of Grant's Interest Rate Observer — and a bear on bonds for some time — argues there are parallels between 1981 and now, at least in conventional wisdom.
But events took a darker turn in 1934, when the Stevens Hotel went bankrupt in the Great Depression, and Stevens's father, grandfather and uncle were indicted for diverting money from the Illinois Life Insurance company to make interest payments on bonds for the hotel.
