drive surge in municipal bankruptcies
Shervin Pishevar has built a career on his in-depth financial expertise. The entrepreneur and venture capitalist has spent the last 20 years building companies from the ground up and providing the early-round financing to help others do the same. Through his venture capital firm, Investment company, Shervin Pishevar has helped to launch some of the biggest names in the tech industry, including Virgin Hyperloop, Uber and Airbnb.
But it is in the realm of social media that Shervin Pishevar is gaining the widest audience. With a Twitter feed that features more than 100,000 followers, Shervin Pishevar is among the most influential figures in the world of tech. In a recent 21-hour tweet storm, he unleashed a number of diatribes against the irresponsible policies of both the Federal Reserve as well as the federal government itself, warning about the long-term consequences of fiscal and monetary carelessness.
Bankruptcy looms for Chicago, Hartford
Shervin Pishevar argues that one of the biggest impending crises that no one ever talks about is the looming bankruptcy of Chicago, one of the biggest cities in the United States in terms of its economy. While Pishevar says that the crisis currently unfolding in Chicago can be squarely blamed on the towering recklessness of years of Democratic rule, he says that a large part of the city’s problems can also be traced back to the crazy policies of the Fed.
Pishevar says that cities like Chicago have been unable to realize the gains they had projected throughout the last decade with respect to debt investments. This is because the Federal Reserve has artificially suppressed interest rates to such an extent that saving money has become almost financial anathema.
Pishevar says that city pension funds have now missed years and years of compounding and are sinking ever further behind, causing unfunded liabilities to mount and hurling Chicago teacher, police and firefighter pension funds towards the brink of insolvency. At the same time, he says that attempts to tax their way out of the crisis are not likely to go well as taxpayers will quickly realize that paying current dollars for past obligations are not adding anything to their lives.