Detroit's Bankruptcy Plan Comes Under Heavy Assault

NBC News ^ | 2/21/14 | John W. Schoen

[Libloather]

The road back for Detroit seems to be getting longer.

More than three months after its historic bankruptcy filing, city officials Friday offered up their proposed plan to pay bondholders, pensioners and other creditors holding its $18 billion debt substantially less then they're owed.

"We think the plan is reasonable," emergency manager Kevyn Orr told reporters. "We really don't have time for a lot of acrimony and litigation."

But even before Orr had a chance to formally unveil it, the plan was under heavy attack from investors, unions representing city workers and other creditors.

[Libloather]

"Movin' on up..."

[pepsionice]

Here’s the thing...the money that they all felt was there twenty and thirty years ago...isn’t there now.

At best....they might get twenty-five to fifty percent of what they perceived. So, they are unhappy. This ‘assault’....simply means that several years and millions will be invested into a court case. That present pot of money....will be eaten up...and dwindle.

In five years...when the case finally clears and a judge stamps it final...the pot will likely be ten percent of the original amount. It’s a sad story....but it’s remarkable...that it’s not completely empty.

[abb]

“Full faith and credit” to the people who lent the city money is apparently a somewhat flexible definition. But that’s OK. The vig will just go up the next time they come to the well.

[ronnie raygun]

Promises rat politicans make that they cant keep

[cripplecreek]

Here’s the thing...the money that they all felt was there twenty and thirty years ago...isn’t there now.

Exactly. Everybody acting like 3 year olds won't help a bit. At this point its only what they do going forward that matters.

[SkyPilot]

"Retirees cannot survive these huge cuts to the pensions they earned. The plan is unfair and unacceptable."

We can all snicker at the Detroit crowd, but I am convinced that this is the plight that all Americans are going to face.

Most American's retirement plans are built on sand. The Fed has pumped so much fake money into the system that the whole thing is a sham. We have not had real economic growth for years, only inflation which gives the illusion of growth. Moreover, the markets are massively manipulated, including metals. China is demanding the Fed ease off the printing. Our status as the World's Reserve Currency is hanging on by a thread. We have some real wealth in the nation, but it is massively diluted by the mirage of fiat money that we believe is reality. The stock market is 53% over priced based on 10 year averages.

There may be a time, very, very soon, where millions of Boomers and others demand "something be done."

[PGalt]

Low-information ‘rats complaining about socialist utopian schemes that fell apart. Quiet slaves. King Kwame’s in jail but KingHussein will rescue us all for a fee. The FED bankruptcy judge will determine the proper looting. Meet the new King, same as the old King. Cue the death panels.

[SPOTTEDOWL]

I believe you are 100% correct. Our money is now backed by nothing other than the word of our government. How does that work for you? Particularly with a pResident who has an inability to tell the truth.

[Gaffer]

"We really don't have time for a lot of acrimony and litigation."

The need for exigency trumps the need for government to keep its promises - even the ones where they eventually end up stealing from investors?

[Gaffer]

What good is an upped vig when it becomes near-certain they will renege on that deal too?

[HChampagne]

The problem is that conservatives do not bother to vote. They evidently have better things to do.

[zeestephen]

We are watching the dress rehearsal for what is about to happen to the bondholders and pensioners of the US government.

[Popman]

Since Obama personally pledged that Detroit will not fail, he needs to pony up and release some of his offshore accounts and make up the difference...

From each according to his ability, to each according to his needs!

Here is the entire Karl Marx quote:
In a higher phase of communist society, after the enslaving subordination of the individual to the division of labor, and therewith also the antithesis between mental and physical labor, has vanished; after labor has become not only a means of life but life's prime want; after the productive forces have also increased with the all-around development of the individual, and all the springs of co-operative wealth flow more abundantly—only then can the narrow horizon of bourgeois right be crossed in its entirety and society inscribe on its banners: From each according to his ability, to each according to his needs!

Probably on a plaque somewhere in the WH muslim prayer room...

[abb]

What good is an upped vig when it becomes near-certain they will renege on that deal too?

Then COD becomes the mode of financing. Happens all the time in the real business world.

[abb]

The problem is that conservatives do not bother to vote. They evidently have better things to do.

Well, there is Dancing With the Stars, and the Super Bowl, and college basketball. All so very important.../sarc

[DoodleDawg]

Orr proposed 34 percent cuts to the pension checks of general city retirees and a 10 percent cut for police and fire retirees. Those cuts could be reduced if the city's two independent pension boards agree to the plan.

Why are some retirees more equal than others? If the pensions have to take a hit then all pensioners should take the hit equally.

[EQAndyBuzz]

“There may be a time, very, very soon, where millions of Boomers and others demand “something be done.” “

Only a few ways to get things done. The first one is purging organizations of left wing leadership. AARP for one.

The 1960’s left wing radicals run the show right now and their front man is untouchable.

[Gaffer]

Yep....basically when you’re PROVEN a deadbeat, up-front cash is how you have to live. Either that, or by the point of a gun and you take it.

[RFEngineer]

“Promises rat politicans make that they cant keep”

its not just Democrats. Its every politician over the past 40 years. We have tens of millions of state, federal, and municipal employees who expect to reap pensions that they were “promised” that require money from the future private sector that simply isn’t there. These folks will not get paid as expected.

[ontap]

Those union a-holes are the ones that caused it......it’s hell to be the ass and the end of a ponzie scheme!!!