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“A man-made byproduct of policy ultimatums placed upon the state’s budget process”

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Failure to embrace pending legislation in the Illinois Senate to address the state’s longstanding budget problems would represent a “significant missed opportunity” and risk a credit rating downgrade and hurt economic growth prospects, S&P Global Ratings said on Monday.

S&P, which rates Illinois BBB with a negative outlook, said legislation boosting revenue and ending the state’s budget impasse could improve the near-term fiscal outlook, although a rating upgrade would be at least two years away. […]

S&P chastised Illinois for a fiscal crisis it called “a man-made byproduct of policy ultimatums placed upon the state’s budget process.

“We believe Illinois’ distressed fiscal condition and dysfunctional budget politics now threaten to erode the state’s long-term economic growth prospects,” S&P Managing Director Gabriel Petek said in a statement. [Emphasis added.]

That’s pretty darned direct, scary and spot freaking on.

* Related…

* Why a Leading Illinois Lawmaker Fears Downgrade to Junk: Illinois faces junk ratings without a solution to the state’s 19-month-old budget stalemate, Senate President John Cullerton warned Monday

* Cullerton’s ‘grand bargain’ push: ‘If not this plan, then what?’: Cullerton has always admitted the plan is in flux. A school funding formula bill is still being drafted, after having incorporated suggestions from Gov. Bruce Rauner’s school funding commission. Cullerton said it has the “principles” needed to get support. And a minimum wage hike bill has been eliminated from the plan — due to pressure from national unions to bump the hike to $15 an hour. The sale of the James R. Thompson Center — a plan being pushed by Rauner’s administration and Republican leaders — has also been added to the plan’s revenue bill. An analysis by the state’s Department of Central Management Services found the sale could bring in $220 million — if the building is demolished and rebuilt. It also could bring in $45 million a year in Chicago property taxes, since it will no longer be a state-owned building. And Cullerton told reporters on Monday that the leaders will likely have a “structured roll call” — which would spare some legislators from taking unpopular votes. It would allow senators in safe districts who are likely to be re-elected to take some of the toughest votes.

* Cullerton: ‘If not this plan, then what?’: But though Cullerton got some help from a big New York bond rating agency, the comprehensive package of $6.5 billion in tax hikes, pension changes and spending cuts continues to catch heavy fire. As Cullerton conceded, “We’ll find out in the next few days” whether the plan will fly politically as a solution.

posted by Rich Miller
Tuesday, Feb 7, 17 @ 10:24 am

Comments

Remind me, who is the man placing policy ultimatums on the state’s budget process?

Comment by northsider (the original) Tuesday, Feb 7, 17 @ 10:33 am
===“a man-made byproduct of policy ultimatums placed upon the state’s budget process…”===

Raunerites. Understand this statement too.

Rauner’s choices, be they Ken Dunkin, using the term “only” when talking about a budget, revenue, and the Turnaround Agenda “musts”… Rauner’s two years have been about choosing hostages and allowing the damage to get so extreme, purposely, to force 60 and 30 on an un-passable Agenda.

Shall we “revisit” the Rauner leverage quotes?

Raunerites, these past two years of damage are on Rauner, as the 6 years prior “were on Quinn”.

The difference is Quinn’s incompetence was never actual purposeful to destroy Illinois, her safety nets, higher ed, in hopes to push an agenda.

Comment by Oswego Willy Tuesday, Feb 7, 17 @ 10:34 am
“a man-made byproduct of policy ultimatums”

Rauner’s collective bargaining and prevailing wage poison pills.

Comment by Grandson of Man Tuesday, Feb 7, 17 @ 10:34 am
–“We believe Illinois’ distressed fiscal condition and dysfunctional budget politics now threaten to erode the state’s long-term economic growth prospects,” S&P Managing Director Gabriel Petek said in a statement.–

There’s your ROI on the Turnaround Agenda.

I suppose it would be the acme of foolishness to inquire if that S&P statement might get some prominent coverage from Illinois media?

Unless, of course, there’s news of a waterskiing squirrel somewhere.

Comment by wordslinger Tuesday, Feb 7, 17 @ 10:37 am
“Dysfunctional budget process” you mean like the House and Senate failing to agree between their chambers? And you expect them to have an agreement with a Republican Governor?

OW should we just continue the smoke and mirrors unbalanced budgeting we have been doing?

Comment by Anonymous Tuesday, Feb 7, 17 @ 10:42 am
Illinois was just told to get off the pot in clear language.

Comment by RNUG Tuesday, Feb 7, 17 @ 10:43 am
” - Anonymous - ” (Ugh)

===…should we just continue the smoke and mirrors unbalanced budgeting we have been doing===

I guess that means your are in favor of the holding the budget hostage, but you just can’t grasp what your typing is comically making my point.

As “ck” has said…

“Thanks!”

Comment by Oswego Willy Tuesday, Feb 7, 17 @ 10:45 am
Say the Senate does get the “conjoined” bills passed this week in a bipartisan fashion, and sends the bill package on to the House. The House then battles it out. How many ILGOP House members will vote green??? Are we headed for a deja vu event of the K-12 funding vote in 2015??? Will Rauner smirk and veto because there are no “reforms” attached??? This Rauner owns- “a man-made byproduct of policy ultimatums placed upon the state’s budget process.” Going Around Rauner, in whatever means and votes are necessary, may be the one and only way to stop paying him any more “interest”.

Comment by Anon221 Tuesday, Feb 7, 17 @ 10:46 am
===“Dysfunctional budget process” you mean like the House and Senate failing to agree between their chambers? And you expect them to have an agreement with a Republican Governor?===

Now that’s comedy. See past work between legislative democrats and republican governors for a reality check.

Comment by Ducky LaMoore Tuesday, Feb 7, 17 @ 10:47 am
At least to S&P, no budget is a much bigger issue than an unbalanced budget.

And no budget should be a huge issue to taxpayers too, because no amount of “reforms” will grow the economy fast enough to avoid the future tax bills you will be getting as a result of these downgrades.

Comment by A Jack Tuesday, Feb 7, 17 @ 10:51 am
Seems like all the actors here — including Madigan — have worked together and proposed successful budgets over the years.

The only difference here — the only difference — is Rauner. I wish Fitch and S&P and every editorial board in the state would realize this. Budgets have been bipartisan — up until Rauner took office.

That says a lot. But no one is saying it loud enough.

Comment by Bobby Catalpa Tuesday, Feb 7, 17 @ 10:52 am
Anonymous was me OW. How has that reality check on budgets going? Over 100 billion in unfunded pension liability not including retiree health care.

The last Quinn budget incorporated a 1/2 year of the revenue from the tax increase but a full year of the spending.

The Democrats first budget was 4 billion out of balance, the last 7 billion, not including CPS pension bailout. The Fullerton Stop gap with an 8 billion gap.

Now the Speaker wants another stop gap. I think their credibility is a little light on responsible budget making.

No serious efforts in the House to change anything. Just blame the Governor for not going along with the same program we have been doing for decades.

Comment by Lucky Pierre Tuesday, Feb 7, 17 @ 10:54 am
This is going to galvanize the Court. The justices do read. This is about as succinct as it can get, “policy ultimatums placed upon the state’s budget process”. There are no constitutional grounds for it.

Comment by wondering Tuesday, Feb 7, 17 @ 10:55 am
==Seems like all the actors here — including Madigan — have worked together and proposed successful budgets over the years.==

I see your “successful budgets” and raise you $120 billion in pension debt and my property tax bill.

Comment by City Zen Tuesday, Feb 7, 17 @ 10:56 am
===…and every editorial board in the state would realize this.===

Most editorial boards are “All In” with Rauner on one way or another, either “because Madigan”, anti-labor, or “blue state” silliness.

Crain’s took it to Rauner, and Rich, and that’s just… about the list.

Proft then would use his newspapers, so the Rauner radio can report it as news, and the radio shows can use all these for Rauner talk radio…

It’s lost in the shuffle.

Comment by Oswego Willy Tuesday, Feb 7, 17 @ 10:57 am
Cullerton/Radogno are/were close to a breakthrough; then along comes Lisa(Michael) MAdigan who stepped in with the motion to stop paying state workers, her action will make the deal unravel. Blame Rauner all you want but this has the Dems hands all over it.

Comment by Texas Red Tuesday, Feb 7, 17 @ 10:57 am
==OW should we just continue the smoke and mirrors unbalanced budgeting we have been doing?==

Rauner. Is. Doing. That.

The only budget he ever submitted was a couple billion out of balance, but he assured us it’d be OK ’cause he’s got pension reform magic beans.

Smoke-and-mirrors budgeting, feuds with Madigan, phoney pension reform, cronyism. Rauner’s basically done everything his campaigned against. He’s just held the budget hostage until he can cut people’s pay, too.

Comment by Arsenal Tuesday, Feb 7, 17 @ 11:01 am
The Rauner playbook from the start is horribly cynical. Create a horrible crisis then force his agenda through as the only solution.

I would be delighted if someone could explain to me why he’s able to get away with not proposing a budget as the constitution mandates? Can he be sued? Impeached?

Comment by Reluctantly Living in ILL Tuesday, Feb 7, 17 @ 11:04 am
so..bobby.=Seems like all the actors here — including Madigan — have worked together and proposed successful budgets over the years.=
Our current fiscal crisis isn’t the DIRECT resutl of all of the LOUSY budgets in the past! I can’t imagine any logical thinker could call previous budgets successful when they have lead to this mess!!! That’s exactly the point. Doing budgets like those in the past will just keep us on the same spiral downward. When exactly do we get past “I’ve tried nothing and nothing works”?

Comment by notbuyingit Tuesday, Feb 7, 17 @ 11:05 am
===No serious efforts in the House to change anything. Just blame the Governor for not going along with the same program we have been doing for decades.===

Rauner could propose a budget. That’ll show him.

Why do you continually ignite that?

===The Democrats first budget was 4 billion out of balance, the last 7 billion, not including CPS pension bailout. The Fullerton Stop gap with an 8 billion gap===

Rauner signed the $8 billion stopgap. Rauner’s deficit was larger than the House proposal.

This is the first time today I’m reminding you about Rauner’s stopgap that was larger.

===
The last Quinn budget incorporated a 1/2 year of the revenue from the tax increase but a full year of the spending.===

You’d think Rauner would want to fix that.

Rauner wanted an agenda. You know that too.

Why won’t Rauner propose a budget?

Why?

Comment by Oswego Willy Tuesday, Feb 7, 17 @ 11:07 am
“No serious efforts in the House to change anything. Just blame the Governor for not going along with the same program . .” That’s not the message I’ve been hearing. What I’ve heard was “Budget first, then reforms.” How is that blaming the Governor for anything? How is that trying to stick to the same playbook? Instead you play the “Because Madigan” card.

Comment by Skeptic Tuesday, Feb 7, 17 @ 11:10 am
===Our current fiscal crisis isn’t the DIRECT resutl of all of the LOUSY budgets in the past===

A budget is a budget. Rauner hasn’t proses one. You already know that, your spinning says its so.

===I can’t imagine any logical thinker could call previous budgets successful when they have lead to this mess!!!===

Your ignorance is just as compelling as the 3 exclamation points!!! LOL.

Governors own, they always do.

“Pat Quinn failed”

Rauner IS failing. These quotes say it’s so. Keep up.

===Doing budgets like those in the past will just keep us on the same spiral downward. When exactly do we get past “I’ve tried nothing and nothing works”?===

You should ask Rauner where is HIS budget.

Otherwise, your strawman needs more stuffing. It’s not holding up.

Comment by Oswego Willy Tuesday, Feb 7, 17 @ 11:12 am
===Just blame the Governor for not going along with the same program we have been doing for decades.===

Yes. I will blame the governor for not going along with the same program, if that program is a) the governor presents a budget b) the general assembly approves a budget c) the governor signs a budget.

Seems pretty straightforward to me how government works. Where is the disconnect here?

Comment by Anonymous Tuesday, Feb 7, 17 @ 11:13 am
“Rauner could propose a budget.”

The same Rauner who went off script and asked the Senate to keep working towards a solution? Or weren’t you paying attention to that positive development? But that would knock Willy off his perpetual and mindless Raunerite nonsense.

And as to Quinn spending down some unpaid bills, those extra revenues were sunset at the end of his term.

Now we have A suddenly energized Lisa Madigan working to shutdown government the day after the State of the State address, something her father has wanted for two years. Don’t cooperate with the new Governor and shut down government so he can be replaced with a Democrat. All that moaning about GOP and Rauner perpetual campaigns overlooks the long ten Madigan Speaker plan.

Let’s just keep the status quo! It’s worked ever so well for us the past 12-24-36 years! (Snark)

Comment by Louis G Atsaves Tuesday, Feb 7, 17 @ 11:27 am
–Cullerton/Radogno are/were close to a breakthrough; then along comes Lisa(Michael) MAdigan who stepped in with the motion to stop paying state workers, her action will make the deal unravel.–

Why’s that?

–The Fullerton Stop gap.–

Where’s the Gap by the Fullerton stop? Is the Parkway Tavern still there?

Or are you referring to the bipartisan budget that the governor pushed and signed?

Comment by wordslinger Tuesday, Feb 7, 17 @ 11:37 am
Finally Rating Agency analysts get it.

The biggest current risk to our economic growth, within the illinois’ government’s control, is uncertainty due to the lack of a budget.

Our current fiscal crisis, and lack of a budget, is “a man-made byproduct of policy ultimatums.”

Don’t talk to me — talk to Standard & Poors.

Comment by walker Tuesday, Feb 7, 17 @ 11:41 am
===And as to Quinn spending down some unpaid bills, those extra revenues were sunset at the end of his term.===

Candidate, Governor-Elect, Governor Rauner asked and applauded that sun setting.

I think I could even find a comment by you applauding it too… maybe?

===The same Rauner who went off script and asked the Senate to keep working towards a solution? Or weren’t you paying attention to that positive development? But that would knock Willy off his perpetual and mindless Raunerite nonsense.===

Nah.

Rauner has proved to be grossly inept.

I asked, applauded, and thanked the Governor for his off/script remarks. Go check.

This Post wouldn’t exist had Rauner, Counselor, followed the Law and submitted a budget, as required.

I know at times the law, you being an officer of the court, gets in the way from the hostage taking. I’d thought as an officer if the court you’d be about the Constitution, why aren’t you?

===…something her father has wanted for two years===

This speaks volumes to how you see women. You want to make the point on the politics, but you just can’t help degrading women by making an elected official a “daughter”.

I’m embarrassed for you.

===Let’s just keep the status quo! It’s worked ever so well for us the past 12-24-36 years! (Snark)===

Then you approve of Rauner stopping the “status quo” by personally holding the state hostage?

Got it. Thanks.

Comment by Oswego Willy Tuesday, Feb 7, 17 @ 11:48 am
@Louis

You are the status quo. Did you not get the memo? That is what we are all here trying to change; the idea that you can hold a budget hostage while complaining about fiscal mismanagement yet the state’s stack of bills has grown by $7bil. That is the status quo. That is the problem. You can moan and groan about 5 10 20 30 years ago all you want. Today’s problems are today’s problems. And today’s problems are the ongoing budget hostage crisis caused by the malfeasance of our governor.

Comment by Ducky LaMoore Tuesday, Feb 7, 17 @ 11:51 am
–The same Rauner who went off script and asked the Senate to keep working towards a solution? Or weren’t you paying attention to that positive development? –

The same Rauner whose bought-and-paid-for attack dogs are dumping all over the effort?

Pretending to be politically naive must be very unpleasant work. Hope the return is worth it.

Comment by wordslinger Tuesday, Feb 7, 17 @ 11:52 am
- Pretending to be politically naive must be very unpleasant work. Hope the return is worth it. -

$125k additional household income is pretty sweet for some light capfax commenting.

Comment by Daniel Plainview Tuesday, Feb 7, 17 @ 12:09 pm
=== Don’t talk to me — talk to Standard & Poors. ===

Bunch of liberals

Comment by Anon Tuesday, Feb 7, 17 @ 12:12 pm
OW ,How chivalrous coming to the Attorney General’s defense who is an elected public official while constantly attacking Diana Rauner who is not. Your hypocrisy is showing again

Comment by Lucky Pierre Tuesday, Feb 7, 17 @ 12:30 pm
Whew! The ankle biters came out in full yap mode after my comments.

I’m not bringing up what happened 12-24-36 years in support of what happened over these years which lead us to all this financial gloom and doom. Yet there are those out there who continue to pretend everything was sunshine and lollipops and everyone got along and sang kumba ya together when it came to enacting “balanced” budgets during those years. Wow!

Fullerton stop? My wife’s salary? “Bought and sold? Yap, yap, yap. Nip. Nip. Nip. Didn’t rebut my assertions one iota.

This state is heading towards a shutdown.The Madigan perpetual campaign is nearly complete.

Lots and lots of folks have suffered needlessly during the brawl between Governor Rauner and Mr. Speaker Status Quo Madigan.

Cullerton and Radogno have the right idea. Rauner during the State of the State went off message to urge them to continue. How infuriating that must be to the ankle biters.

Well, it has to stop now. Pick that long term road and get on it. Longing for the status quo dating back to the 1980’s is longing for more dysfunction.

Wisconsin has passed us by. Wisconsin!

Comment by Louis G. Atsaves Tuesday, Feb 7, 17 @ 1:04 pm
===How chivalrous coming to the Attorney General’s defense who is an elected public official while constantly attacking Diana Rauner who is not.===

Let’s look at what I call Diana out for…

Bruce Rauner, himself, said it may have been his wife, Diana, that could have called Arne Duncan. I didn’t. So, if Bruce Rauner wants to put Diana Rauner out there, that’s the Rauners’ choice.

Let’s talk about The Ounce. Diana herself, when asked about social services suing her husband, Diana said it was a business decision, and she, even as a President of a Social Service group, supports Gov. Rauner and how he is handling the Social Service issue which is not paying vendors with contracts.

Let’s look at campaign funding. It wasn’t me that put Diana Rauner’s name on the millions, yes with an “s”, multiple millions for Republicans, while claiming to be a Democrat. You don’t find that odd an admitted Democrat signs her name on to millions, seemingly directed to dismantle her party, the Democratic Party?

Each instance, I have made a direct point that Diana’s actions, like donating millions to excuse the hurtful actions of social services are then married to the millions to help continue the hostage taking. I have made a direct link to Bruce Rauner saying Diana may be the one clouting their daughter, so the link was made by Bruce, not me, and let’s go back to donations, and you put in millions and millions in for the destruction of your identified party for an agenda your party rejects, that will be called out.

Diana is not a passenger. Diana’s life has never been about being a passenger. Diana is an independent thinker. Bruce had a whole Ad campaign about Diana being an independent thinker from Bruce, and yet she supports him, not just as a wife, but as an actor at The Ounce.

===Your hypocrisy is showing again===

Nope.

Where did I denigrate Diana as a “wife” in a disparaging way?

I haven’t. Diana wants to play in the sandbox? Ok. I’ve called out where her own hypocrisy speaks to where it exists.

Comment by Oswego Willy Tuesday, Feb 7, 17 @ 1:06 pm
===The ankle biters…===

Nah, calling you out where you don’t stand up for the rule of law, the constitution, and you’re law degree are shots at your glass jaw.

LOL, this is epic “lawyering”…

===I’m not bringing up what happened 12-24-36 years in support of what happened over these years which lead us to all this financial gloom and doom. Yet there are those out there who continue to pretend everything was sunshine and lollipops and everyone got along and sang kumba ya together when it came to enacting “balanced” budgets during those years===

“I’m not bringing it up, but since I just did, left-handedly… I’ll use it.

===This state is heading towards a shutdown.The Madigan perpetual campaign is nearly complete===

Oh - Louis G Atsaves - who was running ads during session to attack?

“This state is heading towards a shutdown.The Raunerite perpetual campaigning is nearly complete”

1,000% correct.

===Lots and lots of folks have suffered needlessly during the brawl between Governor Rauner and Mr. Speaker Status Quo Madigan===

The new status quo is a giver of holding a budget hostage fur an Agenda, Counselor. It appears only Raunerites can’t see that.

===Cullerton and Radogno have the right idea. Rauner during the State of the State went off message to urge them to continue.===

… and yet the IPI and Proft, just to name two work against this cooperation… and Rauner and Rauner ally Uihlein are their main funders.

You are asking me to believe IPI and Proft are going rogue? Proft just said, in Rich’s Post today, that his fingers don’t want surrender.

Willfully ignorant - Louis G Atsaves-

===Wisconsin has passed us by. Wisconsin===

Why not the Ohio model?

That’s right, Labor.

Comment by Oswego Willy Tuesday, Feb 7, 17 @ 1:15 pm
–Yet there are those out there who continue to pretend everything was sunshine and lollipops and everyone got along and sang kumba ya together when it came to enacting “balanced” budgets during those years.–

Yeah? Who? Strawman.

–Cullerton and Radogno have the right idea. Rauner during the State of the State went off message to urge them to continue.–

While Rauner’s paid attack dogs continue to rip Radogno and the deal to shreds.

To believe that Rauner is not playing a cynical, duplicitous game, you’d have to believe that grifters like Proft and Tillman would go out on their own to attack Republicans and get sideways of the bank and risk those million-dollar checks.

Not credible, in the least.

Comment by wordslinger Tuesday, Feb 7, 17 @ 1:23 pm
Since Proft went after Radogno, does that make him an ankle biter? Inquiring minds want to know. It seems like Lisa’s action is encouraging the grand bargain, while the Rauner dark money wants to sabotage the bargain.

Comment by A Jack Tuesday, Feb 7, 17 @ 1:31 pm
I should probably Google to check my memory, but I believe Governor Quinn presented two budgets one year–one with no tax increase which included some harsh cuts and one with a tax increase, showing what it would pay for.

Comment by Earnest Tuesday, Feb 7, 17 @ 1:45 pm
We just had Groundhog day. Someone should ask our resident groundhog, Speaker Madigan how many more weeks of misery until a budget is passed. He looks like he prefers a long winter because he has done zero to make an early spring happen.

Comment by Lucky Pierre Tuesday, Feb 7, 17 @ 3:45 pm
“We just had Groundhog day. Someone should ask our Governor, Bruce Rauner how many more weeks of misery until a budget is proposed. He looks like he prefers a long winter because he has done zero to make an early spring happen.”

Better.

Article VIII, Section 2, (a) is before…

Article VIII, Section 2, (b).

Aw, you’re welcome…

Comment by Oswego Willy Tuesday, Feb 7, 17 @ 3:58 pm
OW = regarding my previous post, nowhere did I defend Rauner. I WHOLEHEARTEDLY!!! agree that he is part of the current mess. He is a dissappointment. I am just pointing out that there is significant, historical blame for BOTH sides regarding the mess we are in, so to say that previous budgets were successful is a bit more naive than my three exclamation points. I hope you like the placement of my latest exclamation points better.

Comment by notbuyingit Tuesday, Feb 7, 17 @ 4:15 pm
- notbuyingit -

===I am just pointing out that there is significant, historical blame for BOTH sides regarding the mess we are in, so to say that previous budgets were successful is a bit more naive than my three exclamation points===

You should read McKinney’s take on this in Crain’s. As a lone, “stand alone”, work on tbd pension crisis, it’s a definitive work that is a must.

Your placement now seems better suited, so there’s that.

Comment by Oswego Willy Tuesday, Feb 7, 17 @ 4:29 pm
Of course the Governor has proposed numerous compromises even going with Senator Cullerton’s pension bill.

Perhaps you can list some specifics from the Speaker’s attempts to work cooperatively and professionally with the Governor proposing a mixture of cuts and revenues.

We can all wait till the cows come home because he has not done so

Comment by Lucky Pierre Tuesday, Feb 7, 17 @ 4:31 pm
===Of course the Governor has proposed numerous compromises even going with Senator Cullerton’s pension bill.===

I said budget. Please read.

===Perhaps you can list some specifics from the Speaker’s attempts to work cooperatively and professionally with the Governor proposing a mixture of cuts and revenues.===

Article VIII, Section 2, (a)

===We can all wait till the cows come home because he has not done so===

So why won’t Rauner submit a budget then, lol

Comment by Oswego Willy Tuesday, Feb 7, 17 @ 4:35 pm
LP, what’s the deal with Proft/IPI sabotaging that Senate deal the governor claims to be so hopeful for?

Do you really think Proft/IPI are doing this independent of the governor and his funders?

Comment by wordslinger Tuesday, Feb 7, 17 @ 4:35 pm
Cows are a byproduct down at the rendering plant

Comment by Rabid Tuesday, Feb 7, 17 @ 5:22 pm
Man made byproduct is sewage

Comment by Rabid Tuesday, Feb 7, 17 @ 5:25 pm
In Illinois the state is the takeover target.

https://www.nytimes.com/2017/02/07/opinion/stephen-schwarzmans-bad-business-advice.html?_r=0

Comment by lost in the weeds Wednesday, Feb 8, 17 @ 6:59 am