Michigan legislative action thread
Posted on 07/22/2013 6:14:02 AM PDT by Kaslin
The pensioners and employees need to take a haircut first.
Pray for America to Wake Up
This isn’t idiocy. Its the breakdown of the rule of law. She’s protecting her president and one of her party’s biggest constituencies. More evidence that the Democratic Party is interested in one thing — grabbing as much power and money as it can, rules be damned.
The judge is going to get slapped over this.
She’s an Ingam county judge ruling on events in Wayne county and trying to singlehandedly force a bailout.
I agree with the governor.
In a bankruptcy, the last in line should be those who bought risky bonds in order to receive a higher interest rate. They gambled. They lost.
A funded pension really doesn’t belong to the city. It belongs to the pensioners.
The unfunded pensions are the tragedy. I don’t believe that people who work in city clerk offices and the like are bad people just because they work for crooked or incompetent elected officials. And as they approach retirement, there is no denying they have needs just like everyone else.
Now, to the extent that they supported the system by campaigning for it, voting for it, and donating to it, they have culpability, but I’m guessing there are some who did not. I’m expecting to find some conservative voters in that group of unfunded pension holders.
So, with bondholders in last place, I’d expect pensioners to receive a real terms greater share of the proceeds. Even there, I can see some minimal graduated levels of protection. Those with outlandish pensions should be identified. Those with normal or minimal ones should be more protected.
In this, I’m not adding federal money. I’m thinking in terms of the city divesting itself of any sellable asset, to include real property.
It makes no difference what any judge says or doesn’t say.
If they are broke, they have no money. Period.........
I hope someone here can educate us on what exactly does the Michigan constitution state about honoring union pensions. It’s probably nothing but in the worst case it would force the state of Michigan to cover the city pensions. This would put the liberals of Michigan in a bad position, either pay up or remove the pro-union clause from the state constitution.
Oh, but that's where you're wrong. They "have" plenty of money. It's not really theirs but yours and mine. Do you really think Obamao will let Detwah go bankrupt? Too many votes involved.
This process has been in the works since 1965 and sped up after 1967.
No hope, close the place down, bring in the wrecking balls, oh wait a minute, no funds for the demolition? Just let nature take it's course, let it rot and collapse. The city will be the Dark Ages for about 500 years and then a “Renaissance” will happen...
This Renaissance theme is what kept Detroit going after the 1967 riots but it was running on fumes.
As long as there is CRIME, CRIME, CRIME nobody will want to go there.
I grew up there and walked in the downtown area (Cass Corridor) will two rocks in my hand, like a caveman, ready to clobber any thief who would get close to me...primitive Hobbesian world.
That is exactly why I have little sympathy for the creditors. They knew Detroit was never going to be able to repay the debt but they kept loaning money anyway because they expected the feds to step in and pay it off. They’re doing the same with hundreds of other cities as well.
However, I’m not completely unsympathetic. The environment for business is getting better due to GOP control of the state and I would offer the creditors property as partial payment. They’ll make the properties profitable one way or another. There might even be a way to do the same with the pensions. A developer’s deal to buy the old Packard plant appears to be days away now and he’s already hired the architecture firm that originally built the place.
Ingham County = East Lansing, 90 miles away? WTH??
Why should the pensioners take the haircut first? The bond holders take a risk when they invest in municipal bonds, especially from a city like Detroit. No doubt the interest rates were attractive enough so that the reward was worth the risk. They should take the biggest haircut.
What good is being a liberal if you can’t deny reality?
Lansing is the State Capital...
I am dumbfounded
You said:
>> those who bought risky bonds... gambled. They lost.
So true.
You also said:
>> I don’t believe that people who work in city clerk offices... are bad people
Like you, I don’t believe they’re bad people, but whether they’re good or bad people is not the right question.
The relevant question is should they pay any of the cost.
Well, for years they consumed overly generous benefits, knowing that there was no way to fund them short of magic.
In a subtle way, isn’t that analogous to the bond buyers who took the upside of high interest rates?
Shouldn’t both bondholders AND pensioners, having enjoyed the upside well aware of the risk, now bear some burden in the downside?
And the judge was elected.
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