OT: City of Detroit submits Bankruptcy Plan
Not wanting to get political, but saw this on NBCNews.com. One thing I liked seeing was this little snippit:
"If police and fire department retirees agree to the plan, they would receive about 90 percent of their pensions..."
From what I'd heard before, there was a fear that these valuable former employees of the city may have ended up with a lot less than 90%. If this is true, a big win for the city.
February 21st, 2014 at 7:59 PM ^
(plugs gold company here)...
February 21st, 2014 at 7:16 PM ^
February 21st, 2014 at 7:57 PM ^
People who say things are "complicated" when it comes to the intersection of good governance and sound government finance are usually just afraid to tell the hard truth.
Detroit's socio-economic past might be complicated, and the way these accountants lay everything out in their bankruptcy plan certainly is complicated... but the corruption, greed and flat-out dishonesty of politicians is really quite a simple thing to grasp. Politicians deal in power, and rarely do they want to shrink their own or give up their grasp on it. This goes for people in both current political parties.
This isn't to excuse bond holders either. If you trust a municipal bond salesman or insurer without doing your own homework, that is your fault. Live with those consequences. I live kinda near Baltimore, MD and if you promised me tax-free income on 30 year B-more bonds (and even a discount on the bond sale price), I'd say "thanks but no thanks." I have zero confidence in municipal government up there to manage public money or a debt to me. Zero. I hope that changes, I really do. Frankly I have US treasuries and I'm not super confident in those anymore either.
Sound money that actually has value. Sound finances. Little to no debt. We got away from all that as a country and we need to get back to it.
February 21st, 2014 at 11:35 PM ^
I was hoping to get a gold standard rant and possibly comparing government finances to your personal home finances ("if I can balance my checkbook, why can't the government?"). Highly disappointed.
February 21st, 2014 at 8:01 PM ^
February 22nd, 2014 at 1:16 AM ^
they win, some big.
February 22nd, 2014 at 10:51 AM ^
Detroit is a terrible city, makes me more proud to say I'm from Ann Arbor. I'd say AA is the best city in Michigan by far.