Post by boxcar on Jul 21, 2013 8:05:08 GMT -5
If money to bailout the city of Detroit were handled the same way as was done in the Cyprus situation, the bank accounts of depositors would be drained. This would be done in attempt to support overly generous monetary distributions to city workers and other union pensioners.
This would be more “rob Peter to pay Paul” or as our clever President puts it…”spread the wealth”.
>>In recent decades, many municipalities have provided their workers with generous retirement benefits, both pensions and health coverage, often in lieu of pay increases. But this has created an unsustainable future burden for budgets that has only been exacerbated by the loss of real estate and other tax revenue in the financial crisis.<<
www.newsmax.com/US/detroit-bankruptcy-pension-benefits/2013/07/20/id/516109
>>The ranks of retirees outnumber the city's active workers by more than a 2-1 ratio. With so many retirees receiving pension benefits as the population shrinks, the city is caught in a perpetual knot, one that other cities with high retiree costs relative to revenues - such as Chicago - might have to face in coming years as well.
"This could be kind of a precedent for other municipalities. Anyone concerned about some other cities like Chicago, cities in California, what this could do is accelerate a trend where states begin to withdraw their support for cities," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.<<
Is bankruptcy the way out?
>>The filing, which had been feared for months, put the city on an uncertain course that could mean laying off municipal employees, selling off assets, raising fees and scaling back basic services such as trash collection and snow plowing, which have already been slashed.
"Only one feasible path offers a way out," Gov. Rick Snyder said in a letter approving the move.
The filing marked a turning point for city and state leaders, who must now confront the challenge of rebuilding Detroit's broken budget in as little as a year.
Kevyn Orr, a bankruptcy expert hired by the state in March to stop the city's fiscal free-fall, said Detroit would continue paying its bills and employees.
But, said Michael Sweet, a bankruptcy attorney in Fox-Rothschild's San Francisco office, "they don't have to pay anyone they don't want to. And no one can sue them."<<
townhall.com/news/us/2013/07/18/detroit-emergency-manager-files-bankruptcy-n1644020
LANSING — An Ingham County judge says Thursday's historic Detroit bankruptcy filing violates the Michigan Constitution and state law and must be withdrawn.
But Attorney General Bill Schuette said he will appeal Circuit Judge Rosemarie Aquilina’s Friday rulings and seek emergency consideration by the Michigan Court of Appeals. He wants her orders stayed pending the appeals, he said in a news release.
This would be more “rob Peter to pay Paul” or as our clever President puts it…”spread the wealth”.
>>In recent decades, many municipalities have provided their workers with generous retirement benefits, both pensions and health coverage, often in lieu of pay increases. But this has created an unsustainable future burden for budgets that has only been exacerbated by the loss of real estate and other tax revenue in the financial crisis.<<
www.newsmax.com/US/detroit-bankruptcy-pension-benefits/2013/07/20/id/516109
>>The ranks of retirees outnumber the city's active workers by more than a 2-1 ratio. With so many retirees receiving pension benefits as the population shrinks, the city is caught in a perpetual knot, one that other cities with high retiree costs relative to revenues - such as Chicago - might have to face in coming years as well.
"This could be kind of a precedent for other municipalities. Anyone concerned about some other cities like Chicago, cities in California, what this could do is accelerate a trend where states begin to withdraw their support for cities," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.<<
Is bankruptcy the way out?
>>The filing, which had been feared for months, put the city on an uncertain course that could mean laying off municipal employees, selling off assets, raising fees and scaling back basic services such as trash collection and snow plowing, which have already been slashed.
"Only one feasible path offers a way out," Gov. Rick Snyder said in a letter approving the move.
The filing marked a turning point for city and state leaders, who must now confront the challenge of rebuilding Detroit's broken budget in as little as a year.
Kevyn Orr, a bankruptcy expert hired by the state in March to stop the city's fiscal free-fall, said Detroit would continue paying its bills and employees.
But, said Michael Sweet, a bankruptcy attorney in Fox-Rothschild's San Francisco office, "they don't have to pay anyone they don't want to. And no one can sue them."<<
townhall.com/news/us/2013/07/18/detroit-emergency-manager-files-bankruptcy-n1644020
LANSING — An Ingham County judge says Thursday's historic Detroit bankruptcy filing violates the Michigan Constitution and state law and must be withdrawn.
But Attorney General Bill Schuette said he will appeal Circuit Judge Rosemarie Aquilina’s Friday rulings and seek emergency consideration by the Michigan Court of Appeals. He wants her orders stayed pending the appeals, he said in a news release.
