The Journey to a “Grand Bargain” continues. Other hurdles that need T’s crossed and I’s dotted are the Detroit Institute of the Arts and the Water Department.
I am shocked by this!
They did the right thing...something leftist union folk rarely do.
A hat tip to them :-)
Wait till the imperial federal government wants people to vote social security cuts.
Chicago’s pensions continue full speed, cliff ahead.
http://www.freep.com/article/20140721/NEWS01/307210176/Detroit-bankruptcy-pension-grand-bargain-vote
“In a separate ballot, retirees also voted to approve a 90% reduction in their health care benefits”
That’s pretty hard to believe...
The people who are owed money are none too happy.
“For one thing, 119 classes of Detroit Water and Sewer Department secured bondholders voted “no,” compared to 32 that voted “yes,” presenting a legal hurdle for the city. They voted “no,” even though they will be paid 100% of their principal, because they are mad at the city’s plan to redeem their bonds early.”
“Four groups of unsecured creditors voted “no” — including the stiffest of opponents, a group of bond insurers and hedge funds that control $1.4 billion in pension debt issued by Mayor Kwame Kilpatrick’s administration in 2005.
“I don’t think anyone’s surprised by this,” U-M’s Pottow said. “Everyone knew the bonds were going to vote no. The big battle we’re going to have looming is going to be the bondholders. They’re going to say you can’t pay these pensions better than us.”
Smaller unsecured creditors, including people who sued the city and are owed settlements, also voted “no.””
What’s a “pension”?
A percentage of something is worth more than 100% of nothing.
They finally realized that.