Detroit is Officially Bankrupt

Posted By: airforce

Detroit is Officially Bankrupt - 12/03/2013 10:32 AM

And pensions are not exempt from the chopping block. It's the largest city to ever enter into Chapter 9, but it certainly won't be the last.

The Michigan Constitution protects public pensions as a "contractual obligation that cannot be diminished or impaired." But U.S. bankruptcy law allows contract cuts, and Judge Rhodes ruled that federal law preempts the state Constitution. This is going to get hairy.

Quote

The city of Detroit today officially became the largest municipality in U.S. history to enter Chapter 9 bankruptcy after U.S. Bankruptcy Judge Steven Rhodes declared it met the specific legal criteria required to receive protection from its creditors.

The landmark ruling ends more than four months of uncertainty over the fate of the case and sets the stage for a fierce clash over how to slash an estimated $18 billion in debt and long-term liabilities that have hampered Detroit from attacking pervasive blight and violent crime.

�It is indeed a momentous day,� Rhodes said at the end of a 90-minute summary of his ruling. �We have here a judicial finding that this once proud city cannot pay its debts. At the same time, it has an opportunity for a fresh start. I hope that everybody associated with the city will recognize that opportunity.�

Rhodes � in a surprise decision this morning � also said he�ll allow pension cuts in Detroit's bankruptcy. Rhodes emphasized that he won�t necessarily agree to pension cuts in the city�s final reorganization plan unless the entire plan is fair and equitable.

�Resolving this issue now will likely expedite the resolution of this bankruptcy case,� he said....

Onward and upward,
airforce

Posted By: SBL

Re: Detroit is Officially Bankrupt - 12/03/2013 07:43 PM

Watch the Robocop movies. With the exception of Robocop himself, Detroit is EXACTLY like it is in the movie.

Posted By: Lord Vader

Re: Detroit is Officially Bankrupt - 12/03/2013 08:38 PM

If the pensions are cut as much as was reported on TV, it was stated that a $3,000 Pension may be cut to about $400 and that will be hard to live with and things may get very interesting if the retirees decide to protest and the protest gets violent. One big question since a lot of the protesters will be retired Cops what will the on duty Cops do?

The song �The Night Chicago Died� may become the �The Night Detroit Died�

I hope there will be a lot of violence on the streets of Detroit.

Posted By: safetalker

Re: Detroit is Officially Bankrupt - 12/04/2013 05:20 PM

This is shoe number 2.
Shoe number 1 was when the Federal Appeals Judge determined that Melon's bank was not illegal when they used Savings account money to pay off the Golden Parachutes of it's upper level employees. The Judge there decided that depositing your money was the same as investing your money, and that both belonged to the bank until returned by the bank.
Now shoe two has determined that a pension is just another obligation.

These mean more than the news is sharing. Your Social Security in an investment contract. It meets the criteria for Shoe 2.

Those of us receiving a military or other Government Retirement fits into shoe 1. With this determination the Corporations will begin to plan how to walk away from their obligations with Federal approval.

Once again also we see the 14th amendment being shoved up the states backsides.

Time for action will be sooner than later it seems as the elites grab the money off the table and run for the borders.

Posted By: airforce

Re: Detroit is Officially Bankrupt - 12/04/2013 06:46 PM

The dirty little secret is that unfunded pension liabilities are a ticking time bomb. Detroit is hardly alone. In fact, Detroit isn't even the worst offender. A few cities in California have already gone bankrupt, but the whole state of California is teetering on the brink. And a dozen other states are right behind it.

Onward and upward,
airforce

Posted By: airforce

Re: Detroit is Officially Bankrupt - 12/05/2013 08:11 AM

The Detroit pension system will appeal the ruling. That was a real shocker.

Quote

After a closed-door meeting today in downtown Detroit, officials with the city�s main pension plan said they are poised to file an appeal of Tuesday�s decision that the city is eligible for bankruptcy.

The bankruptcy process will hurt the city�s retirees and future retirees and must be stopped, said Michael VanOverbeke, general counsel for Detroit�s General Retirement System, a pension plan with about 12,000 retirees and about 8,000 active employees.

As soon as U.S. Bankruptcy Judge Steven Rhodes issues his written ruling, expected today, the pension fund�s trustees intend to appeal it federal court, VanOverbeke said. And he said that a meeting is scheduled for Thursday of trustees of the city�s other big retirement fund � the Police and Fire Retirement System, which shares office space with the General Retirement System on the 9th floor of the Coleman A. Young Municipal Building.

The police and fire fund also is expected to appeal Rhodes� ruling, which officially declared Detroit to be the largest municipality in U.S. history to enter Chapter 9 bankruptcy....

Onward and upward,
airforce