Posted on 06/20/2013 11:01:59 AM PDT by blam
Detroit About To Blow Up The World?
Karl Denninger
The Market Ticker
June 20,2013
"Detroit Emergency Manager Kevyn Orr ordered an investigation into employee benefit programs, including the insurance and pension systems.
Orr told the city’s inspector and auditor general, agencies that both have subpoena power, to report within 60 days in an order dated today.
The document should cover “next steps, and any corrective, prospective, legal, additional investigatory or other action designed to address any waste, abuse, fraud or corruption uncovered,” according to Orr’s order.
Everyone raise their hand if they think this is just about people scamming "disability" and other pension-related things to which they're not really entitled.
Now everyone who raised your hand -- go find the nearest can of Drano and drink it. You're that dumb -- or hopeful.
Maybe both.
Remember how I've been talking for years about REMICs and how during the bubble years there were lots of "not quite right" acts when it comes to transfers of documents that simply never happened?
What if Orr finds that in his pretty little (far too little) pension funds?
This is the 900lb Gorilla in the china shop that nobody has wanted to go anywhere near, because it infests virtually everything when it comes to duration-matched funds (which pensions must be in order to "work") to some degree.
It's faded off the front page, of course, as the market has "recovered."
But that you don't smell the dead fish doesn't mean that it suddenly came back to life, or stopped rotting.
It just means that the bag it was put in has held up -- so far.
I've got the popcorn ready...
I like a lot of Karl’s insights, but dude runs his forum like a junior high school teacher with bad PMS.
If they even managed to cut public employee pensions a little that would be enough to blow up the union’s world.
LOL. I think he drinks while he works.
Pardon me, but his writing style leaves a bit to be desired, please spell it out, and not infer...
If that’s the case, then he’s a mean and impatient drunk.
http://news.investors.com/061813-660353-detroit-chicago-shift-retiree-costs-to-obamacare.htm
The US taxpayers will be bailing out Detroit.
[Now everyone who raised your hand — go find the nearest can of Drano and drink it. ]
Well.... I can save everyone the trouble. It tastes salty, it foams up in your mouth, and it get’s really hot.
Stick to Starbucks Coffee. It doesn’t taste salty.
And what will this investigation find? Benefits were too generous, funds were not properly managed, there was this, there was that, the sun will rise tomorrow. Ho Hum but no jail time for anyone no matter what.
And then?
What does this mean in ENGLISH? The author is rambling.
“This is the 900lb Gorilla in the china shop....”
No, no, no! The gorilla is in the room; a bull is in the china shop.
And then, the US taxpayers will bail out all the union pension accounts....It will be because, "The retirees worked their whole lives and it's not fair that their (absurd) pensions were mismanaged."
This will happen again and again in every major US city with the Affirmitive Action managed cities being the first at the trough.
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