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Detroit Files For Bankruptcy (Retirees Outnumber Employees By Over 2 to 1), Judge Bars Pension Cuts
Confounded Interest ^ | 07/18/2013 | Anthony B. Sanders

Posted on 07/18/2013 3:00:40 PM PDT by whitedog57

The City of Detroit filed for bankruptcy Thursday in federal court, trying to get out from under billions in debt. If approved it would be the largest city bankruptcy in U.S. history.

The filing was under what is called Chapter 9 of the U.S. code, which allows municipalities to restructure debt under bankruptcy protection. The bankruptcy filing begins a 30-to-90 day period during which the court will determine whether the city is eligible for Chapter 9 and how many creditors will want a piece of the city’s limited resources. A city must be insolvent to seek Chapter 9 protection.

Detroit is near the statutory limits of its ability to tax. That power has been dragged down by a drop in the city’s population, down 60 per cent from almost 2 million at the peak in the 1950s to just under 700,000. The led to a 40 per cent drop in tax revenues since 2000. The city has had to borrow money to meet its operating budget which has been slashed. With the City retiree pool currently outnumbering active employees by an over-2 to 1 margin and growing, the City must address pension and retiree!healthcare liabilities as part of any comprehensive restructuring. As discussed above in Section 3(b), the City and its advisors are currently evaluating ways to reduce these unfunded liabilities, which involves an evaluation of plan design and benefits offered, to identify potential cost savings.

detpen

Faced with the obvious solution of slashing pensions, a Michigan judge (Ingham County Circuit Court Judge Rosemarie E. Aquilina) temporarily barred the state’s governor and Detroit’s emergency manager from taking any action that would allow cuts in pension benefits for city retirees.

The Obama Administration quickly responded: “We remain committed to continuing our strong partnership with Detroit as it works to recover and revitalize and maintain its status as one of America’s great cities,” White House spokeswoman Amy Brundage says in e-mailed statement.

Do I smell a Federal bailout … again?


TOPICS: Business/Economy; Government; Politics
KEYWORDS: bankruptcy; chapter9; detroit; michigan; obama
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Obama will bail out the Detroit pension recipients.
1 posted on 07/18/2013 3:00:40 PM PDT by whitedog57
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To: whitedog57

“Faced with the obvious solution of slashing pensions, a Michigan judge (Ingham County Circuit Court Judge Rosemarie E. Aquilina) temporarily barred the state’s governor and Detroit’s emergency manager from taking any action that would allow cuts in pension benefits for city retirees. “

Ok, Judge Airhead. Do you have the money to pay for that stuff under that black skirt of yours?


2 posted on 07/18/2013 3:04:53 PM PDT by VanDeKoik
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To: VanDeKoik

How does a state judge think she has any say in how a federal bankruptcy action will be handled?


3 posted on 07/18/2013 3:08:14 PM PDT by CA Conservative (Texan by birth, Californian by circumstance)
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To: whitedog57

Detroit is broke because whites fled the city and took their tax money with them. And it all started with the radical “leadership” of corrupt democRAT Coleman Young.


4 posted on 07/18/2013 3:08:59 PM PDT by South40
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To: whitedog57

Obama will bail out the Detroit pension recipients.
***************************************************************
I certainly hope not. I’m getting a little tired of the statists and the employees of the statists’ instrument of power (the government) being protected and sheltered.


5 posted on 07/18/2013 3:09:58 PM PDT by House Atreides ( D)
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To: VanDeKoik
State & local governments should be banned from pension bailouts.

This "Tragedy of the Commons" crap spreading the pain of corruption and ineptitude can't go on.

6 posted on 07/18/2013 3:11:38 PM PDT by Calvin Locke
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To: VanDeKoik

Judges get pensions too.


7 posted on 07/18/2013 3:15:01 PM PDT by Mark (Obama is more confused than a hungry baby in a topless bar)
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To: whitedog57
This is going to happen to all the public school teachers in the country who think they have that big fat pension coming from the taxpayers.

They are going to be so surprised when they discover that you can't have government spend money and have it, too.

8 posted on 07/18/2013 3:17:10 PM PDT by E. Pluribus Unum (Who knew that one day professional wrestling would be less fake than professional journalism?)
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To: VanDeKoik
“Faced with the obvious solution of slashing pensions, a Michigan judge (Ingham County Circuit Court Judge Rosemarie E. Aquilina) temporarily barred the state’s governor and Detroit’s emergency manager from taking any action that would allow cuts in pension benefits for city retirees. “

Conflicting reports: this article from 30 minutes says she was going to bar the emergency manager from filing for bankruptcy, but the petitioners were minutes too late.

9 posted on 07/18/2013 3:18:05 PM PDT by PapaBear3625 (You don't notice it's a police state until the police come for you.)
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To: whitedog57

Detroit can’t pay its bills, so a judge is going to require them to pay their bills before they can slash their budget?????


10 posted on 07/18/2013 3:18:22 PM PDT by Tzimisce (The American Revolution began when the British attempted to disarm the Colonists.)
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To: whitedog57

The greedy working class of America will have to do their part to support this wonderful city. There are a lot of beds that need feathering and a lot of back that need scratching. Unions need their money!


11 posted on 07/18/2013 3:22:55 PM PDT by KSCITYBOY
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To: whitedog57

The whole point of bankruptcy is to get out of bad contracts. While I feel sorry for the retirees, their benefits are not sacrosanct and should not be preserved at the expense of taxpayers. A private company that goes bankrupt does just that. Municipal employees are not holier than thou.

Everyone must be responsible for his or herself. You cannot and should not depend upon the government or others to take care of you.


12 posted on 07/18/2013 3:25:44 PM PDT by NoKoolAidforMe (I'm clinging to my God and my guns. You can keep the change.)
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To: South40

When will the federal government follow suit? The sooner the better. It’s time we all take our medicine, pick up the pieces, and build anew.


13 posted on 07/18/2013 3:26:46 PM PDT by huckfillary (qual tyo ta)
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To: South40

I’d suggest that it goes back well before 1967.


14 posted on 07/18/2013 3:32:00 PM PDT by Paladin2
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To: whitedog57

Detroit councilwoman to Obama: We voted for you, now bail us out

Read more: http://www.myfoxdetroit.com/story/20264712/detroit-councilwoman-to-obama-we-supported-you-now-support-us#ixzz2ZRHsJCbi


15 posted on 07/18/2013 3:32:31 PM PDT by Rusty0604
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To: E. Pluribus Unum
you can't have government spend money and have it, too.

This judge puts a lie to that. Unions know that under o they are covered. the other normal tax payers are not.

If the dem low information voters can not see all this yet, we are doomed. Thank you again to all the NON VOTERS who actually voted for Obama.

Remember, if the 5 million conservative who did not vote would have.. there would have been someone else in office now. If you can not see that anyone other than O is "not any better" you are a fool and a child.

And yes maybe it would not be your dream president, but the one we got because of you is no dream either.

Oh, and O still will most likely (nearly certainly) get two new SCOTUS justices... so you screwed that pooch too. You children. With only one more liberal justice we are doomed.
16 posted on 07/18/2013 3:33:09 PM PDT by JSteff (It was ALL about SCOTUS... We are DOOMED for several generations. . Who cares? The Dems care!)
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To: whitedog57

Give every retiree 40 acres and a mule.


17 posted on 07/18/2013 3:35:19 PM PDT by Average Al
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To: whitedog57

The real political fight hasn’t begun, yet. Government employees will struggle in politics against their predecessors (pensioners) for the decreasing availability of debt/revenues, as the default process continues. That’s where the money is, although it will drastically decrease in value (recirculating debt without manufacturing production of real wealth).

Have fun. Enjoy the slide (unless you’re a government employee or pensioner). Gloat fast over having sent most of the real work for real men to foreign countries over the past few decades, because the situation won’t last long.


18 posted on 07/18/2013 3:46:56 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: Average Al
"Give every retiree 40 acres and a mule."

That's a good one! Problem is, they'd claim that each 40 acres was worth $600,000 and continue to outlaw all real work and private property rights in their counties for the sake of property values. There's only one over-60 within many miles of me who gets outdoors to do any work, and he's about 80. His lazy neighbors ripped him off, big time.


19 posted on 07/18/2013 3:51:37 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: whitedog57

Let’s see—
1) city government (Democrat-run, natch) overpromises on pensions and steals the taxpayers blind
2) said government declares bankruptcy
3) taxpayers across the country get stuck with the bill.
What we have here is another welfare program, which transfers the hard-earned money of working people, to the moochers in Detroit.


20 posted on 07/18/2013 3:53:59 PM PDT by CivilWarguy
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To: PapaBear3625
Wow...

Orr must have gotten wind of what she wanted to do, and they jumped the gun on her to keep their options open...

Holy %h!+ Batman that was close and serious...

21 posted on 07/18/2013 3:56:24 PM PDT by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks.....)
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To: E. Pluribus Unum
I personally don't give a damn about Unionized teachers. They teach
for all the wrong reasons, and the good ones go along like so-called good Muslims.
Yea, I did the comparison, deal with it.
22 posted on 07/18/2013 3:56:33 PM PDT by MaxMax (If you're not pissed off, you're not paying attention)
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To: whitedog57
I'd join in the Detroit bashing. Certainly they've not managed their city well and wrote checks they can't cash.

But if we don't protect our markets, that will eventually be every city. Even cities that avoided debt and didn't promise their employees crap will eventually be dropping basic services and turning out the lights.

23 posted on 07/18/2013 3:59:12 PM PDT by DannyTN
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To: JSteff
And yes maybe it would not be your dream president, but the one we got because of you is no dream either.

The big O is not a dream? I beg to differ. He is a nightmare.

24 posted on 07/18/2013 4:00:30 PM PDT by jdsteel (Give me freedom, not more government.)
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To: Average Al
Give every retiree 40 acres and a mule.< P>DEAL!
25 posted on 07/18/2013 4:01:20 PM PDT by American in Israel (A wise man's heart directs him to the right, but the foolish mans heart directs him toward the left.)
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To: whitedog57

If Obama had a city.............................


26 posted on 07/18/2013 4:04:39 PM PDT by Polyxene (Out of the depths I have cried to Thee, O Lord; Lord, hear my voice.)
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To: House Atreides

> Obama will bail out the Detroit pension recipients.
***************************************************************
I certainly hope not. I’m getting a little tired of the statists and the employees of the statists’ instrument of power (the government) being protected and sheltered.

Funny how all the DemoRat strongholds are running out of money and going bankrupt while the conserative regions are staying solvent and thriving. Surely just a coincidence. Maybe there’s a lesson to be learned there...


27 posted on 07/18/2013 4:06:56 PM PDT by jsanders2001
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To: familyop

Better yet. The city could use those old abandoned buildings to grow weed and poppies with solar powered black lights.............


28 posted on 07/18/2013 4:14:04 PM PDT by Average Al
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To: whitedog57

all the black ones, anyway.


29 posted on 07/18/2013 4:19:09 PM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: taildragger
Orr must have gotten wind of what she wanted to do, and they jumped the gun on her to keep their options open...

It's real funny, from an article linked to by the article I linked:

An attorney for the pension funds said he feels blindsided because he agreed to delay the emergency hearing five minutes at the request of attorneys for Gov. Rick Snyder. He was seeking a temporary restraining order to block the historic bankruptcy filing.

During those five minutes, he said, attorneys filed in federal court in Detroit for Chapter 9 bankruptcy protection, which generally results in a stay in all other pending litigation involving the city.

Suckers!
30 posted on 07/18/2013 4:20:36 PM PDT by PapaBear3625 (You don't notice it's a police state until the police come for you.)
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To: whitedog57
How many workers (not #employees) are there in Detroit?

Looks like they ran out of other people's money and it's very likely that the takers outnumber the makers by 10 to 1.

31 posted on 07/18/2013 4:52:53 PM PDT by Paladin2
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To: DannyTN

Who’s going to feed the ‘rats when there are only ‘rats left?


32 posted on 07/18/2013 4:55:13 PM PDT by Paladin2
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To: whitedog57

Obamacare’s death panels will deal with the overabundance of retirees quite effectively.


33 posted on 07/18/2013 4:58:51 PM PDT by Fresh Wind (The last remnants of the Old Republic have been swept away.)
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To: CivilWarguy

Pension gap divides public and private workers (2007 article but timely)

http://www.usatoday.com/news/nation/2007-02-20-pensions-cover_x.htm

You can bet the politicians will be looking for ways to steal the 401k savings of the non-government retirees to fund the bloated benefits of the government retirees. The former group has nobody to defend them. The latter has politicians and unions feeding at the trough.

Read pensiontsunami.com regularly.
It’s a compilation of news reports, mostly local or regional, about pension problems and abuses everywhere. You’ll see what regular Joes are angry about.

www.pensiontsunami.com


34 posted on 07/18/2013 5:08:22 PM PDT by TurboZamboni (Marx smelled bad & lived with his parents most his life.)
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To: whitedog57

But I thought Obama single handedly saved the Motor City.


35 posted on 07/18/2013 5:10:53 PM PDT by mylife (Ted Cruz understands the law, and he does not fear the unlawful.)
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To: whitedog57
Faced with the obvious solution of slashing pensions, a Michigan judge (Ingham County Circuit Court Judge Rosemarie E. Aquilina) temporarily barred the state’s governor and Detroit’s emergency manager from taking any action that would allow cuts in pension benefits for city retirees.

BK is Federal The BK judge will overrule one way or another.

36 posted on 07/18/2013 5:14:10 PM PDT by Mike Darancette (Fight the culture of nothing.)
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To: DannyTN
Detroit began losing its white population in the 1950's. Had nothing to do with foreign markets, which basically did not exist in that era.

Labor corruption has deep and tenacious roots.

37 posted on 07/18/2013 5:24:53 PM PDT by hinckley buzzard
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To: whitedog57

Sell off Miggy, I know a few teams that’ll buy him.


38 posted on 07/18/2013 5:29:18 PM PDT by this_ol_patriot
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To: JSteff
Yeah Romney would be saving us.....

Along with Dole, McCain, Lindsey, Rubio, Christy, etc....

39 posted on 07/18/2013 5:36:09 PM PDT by Osage Orange (Light travels faster than sound. This is why some people appear bright until you hear them speak.)
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To: Rusty0604
Detroit councilwoman to Obama: We voted for you, now bail us out

Great idea. All the people who voted for Obama can be tapped for the bailout. Leave the rest of us the heck alone.

40 posted on 07/18/2013 5:43:29 PM PDT by randita
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To: Osage Orange
Would have been better than O. At least Romney actually had/has jobs that generated money.
Sorry you do not under stand the difference between capitalism and being ruled by a socialist.
Oh, and Dole was not in this race at all and you well know who and what I was specifically referring to... if you don't it is probably better you did not vote so Obama won, just as you subconsciously wanted.
A quick question or two; Did you feel that Chrissy tingle up your leg when you thought of or heard O?
Did you faint when you were at his rally?

41 posted on 07/18/2013 6:04:56 PM PDT by JSteff (It was ALL about SCOTUS... We are DOOMED for several generations. . Who cares? The Dems care!)
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To: jdsteel
Yes and night sweats and terrors...
42 posted on 07/18/2013 6:06:13 PM PDT by JSteff (It was ALL about SCOTUS... We are DOOMED for several generations. . Who cares? The Dems care!)
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To: whitedog57

Detroit has no tax base and no income to pay its pensioners. The State of Michigan won’t bail out Detroit and it’s unlikely that Feds can either. In other words, it’s time for Detroit to go into liquidation.


43 posted on 07/18/2013 6:17:53 PM PDT by MasterGunner01
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To: MasterGunner01

o pension cuts?

let the judge pay it


44 posted on 07/18/2013 6:20:13 PM PDT by GeronL
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To: JSteff
You've been here since '98...and you know very little. And project much........

You will have the last word.

45 posted on 07/18/2013 6:37:54 PM PDT by Osage Orange (Light travels faster than sound. This is why some people appear bright until you hear them speak.)
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To: TurboZamboni
Pension gap divides public and private workers (2007 article but timely)

What about the division between workers, both public and private, and the Wall Street high rollers who gambled away 401ks and crashed the economy for all in 2008?

You’ll see what regular Joes are angry about.

Regular Joes are upset about ordinary people facing financial hardship or ruin, whether they're public or private employees, business owners, blue collar or white collar, young or old, black or white. What's the point of trying to pit people against each other in a zero sum game? Adjustments and "haircuts" may need to be made, but they need to be in a spirit of necessity, not a spirit of malice.

46 posted on 07/18/2013 8:05:26 PM PDT by Route797
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To: whitedog57

Let the people of Detroit eat hope and change. They’ve let their city become a cesspool.

Obama gives out Obamaphones to whoever will take them. Next will be prayer rug distribution to whoever will take them - or be made to take them.


47 posted on 07/18/2013 8:55:16 PM PDT by Words Make the Man
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To: whitedog57

Cities have functioned as a gigantic payoff machine for rat voters. If they are allowed to sink under the waves as they deserve, the rat will have to swim. The Rat party will lose its utility to its little rat voters. Can’t see it being allowed to happen. We’ll see. The Feds have already become more and more the nursing mother. Maybe that maintains the status quo until the nation collapses.


48 posted on 07/18/2013 9:13:00 PM PDT by Stentor
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To: Route797

Who really unchained Wall Street?

For all the bluster of Obama, pre- and post-2008, as well as that of Attorney General Eric Holder concerning the alleged criminal activities on Wall Street, there have been zero Wall Street prosecutions under Obama/Holder. Compare that with his predecessors Bush and Clinton:

GAI [Government Accountability Institute] details how the George W. Bush and Bill Clinton administrations both actually took down financial criminals - unlike the Obama administration. Between 2002 and 2008, for instance, GAI points out how a Bush administration task force “obtained over 1,300 corporate fraud convictions, including those of over 130 corporate vice presidents and over 200 CEOs and corporate presidents.”

“Clinton’s DOJ prosecuted over 1,800 S&L (savings and loans) executives, senior officials, and directors, and over 1,000 of them were sent to jail,” GAI adds. But, despite having “promised more of the same,” especially in the wake of the 2008 financial crisis, the Obama administration’s DOJ has not brought criminal charges against a single major Wall Street executive. The Bush and Clinton administrations’ track records on prosecuting white-collar crime, and the Obama administration’s failure to do so, Schweizer said, is “evidence that this has less to do with some sort of partisan or philosophical issue.”

Bush - 1,300 convictions;

Clinton - 1,000 convictions;

Obama - Zero attempts.

http://www.americanthinker.com/blog/2012/08/who_really_unchained_wall_street.html

No One Will Charged With a Crime for the MF Global Collapse

http://news.yahoo.com/no-one-charged-crime-mf-global-collapse-111056124—finance.html?_esi=1

http://www.breitbart.com/Big-Government/2012/07/26/REVEALED-Corzine-s-MF-Global-Was-a-Client-of-Eric%20Holder-s-Law-Firm


49 posted on 07/19/2013 5:57:21 AM PDT by TurboZamboni (Marx smelled bad & lived with his parents most his life.)
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To: GeronL
My understanding this was a MI state judge. What power does she have over a federal bankruptcy court? None, unless pols give her that authority. They should tell this moron to pound sand and ignore the twit.
50 posted on 07/19/2013 6:29:40 AM PDT by MasterGunner01
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