So, Detroit finally decides to go bankrupt, and the DJIA rallies! 1) Have a representative from Philadelphia cry and moan about how they need a bailout and get one from the federal government... -or- 2) Leave it actually default like Lehman Bros and watch everyone else's muni bonds go to >7% and make them go bankrupt too... Which way do you think it's going to go?
I suspect they will let it default as there is not the will to pass any bill within the .gov at this time.... It would be one more bloody battle between the two parties and the division is to great to pass anything if someone tabled a motion to forward a relief bill. As far as I am concerned it is a state matter.... keep the fed out and fix your own house...that is how it is supposed to work. YD
This is a perfect opportunity for the city to get out from underneath it's pension/retirement obligations. And, that will be exactly what they'll do. 9 Billion funding shortfall so far that they can find. It'll probably be more. there are going to be hair cuts, but the city was very generous with the tax payers money. Looks like the 'Hard Workers' of the fair city will be experiencing what the rest of the state already know. Times are tough all over. They will just get their medicine in a quicker larger dose. Hopefully it doesn't kill the patient.
The federal agency that guarantees pensions, the Pension Benefit Guaranty Corporation, will assume responsibility for the plans, so we get stuck....
Maybe they should put this lady in charge, she got some fire and will at least pay the police properly.
