Detroit becomes largest US city to file for bankruptcy

Posted by $ erudeen 6 years, 10 months ago to News
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Will it go the way of Starnesville?
SOURCE URL: http://www.cnbc.com/id/100764427


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  • Posted by UncommonSense 6 years, 10 months ago
    If they get bailed out by the Federal Gov't, does that mean Detroit becomes a Federal City? This is scary stuff.
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    • Posted by Rocky_Road 6 years, 10 months ago
      It already is, thanks to the GM bailout.

      That abortion of the Constitution is now the basis for the Progressive's cry to save the Detroit civil servants pensions.

      California is in the same leaking boat, but I am not sure if the California Constitution prohibits amending their civil servant's pension plans.
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  • Posted by Rocky_Road 6 years, 10 months ago
    It will be interesting. I suspect most of the country will watch to see if the Chapter 9 process can cut back some of the guaranteed pension and health care benefits.

    If so, especially taking into account that Michigan has what amounts to a constitutional provision that guarantees payments, then we could see a bunch more filings as cities try to strip away those fixed costs.
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    • Posted by Rocky_Road 6 years, 10 months ago
      And here it goes, as predicted:

      "Aquilina issued a declaratory judgment that says the bankruptcy filing violated the Michigan Constitution.

      “In order to rectify his unauthorized and unconstitutional actions ... the Governor must (1) direct the Emergency Manager to immediately withdraw the Chapter 9 petition filed on July 18, and (2) not authorize any further Chapter 9 filing which threatens to diminish or impair accrued pension benefits,” she said in her order."

      http://www.freep.com/article/20130719/NE......
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  • Posted by $ Tap2Golf 6 years, 10 months ago
    Amen. Pay attention America, other cities will follow unless the unions release their bootstraps from the necks of the union members.
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