OT: City of Detroit submits Bankruptcy Plan

Submitted by GoWings2008 on February 21st, 2014 at 3:29 PM

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.

http://www.nbcnews.com/business/economy/detroit-files-historic-bankruptcy-blueprint-n35511?ocid=msnhp&pos=1

Comments

uofmfan_13

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.       

bronxblue

February 21st, 2014 at 8:01 PM ^

Impressed this thread survived this long.
Honestly, nobody wins when a major city files for bankruptcy. I'm happy some retirees won't be left with nothing, but all of this feels hollow