Bad news on Chicago is deep and broad:

The Chicago Public School System has a $1.1 Billion Budget Hole in $5.9 Billion Budget

A $228 to $263 million derivative time bomb just triggered on the Chicago Board of Education

Chicago Public Schools may be out of cash in 30 days

Corruption investigations plague the school board

Chicago booted Moody's as a bond rater

Roadblocks impair pension reforms by the Illinois legislature

Rauner issued a statement he will not bail out Chicago on the backs of Illinois taxpayers

Chicago teachers threaten strikes demanding more money that isn't there

Let's investigate those ideas starting with the bond rating cuts that triggered the derivatives time bomb.

Bond Rating Cuts

On March 9, Moody's dropped Chicago School bonds two notches to Baa3, that last rank above Junk.