CA take note: MI state judge tests federal bankruptcy law
For municipal bankruptcy, all eyes across the nation now turn to Detroit.
The latest: Michigan Circuit Court Judge Rosemary Aquilina ordered Detroit’s bankruptcy filings be withdrawn because they violate state law guaranteeing that pensions must be paid to public employees. The bankruptcy filing seeks to reduce all city liabilities, including pensions, by 90 percent.
Reported the Detroit News:
” ‘It’s absolutely needed,’ said Judge Rosemary Aquilina, observing she hopes Gov. Rick Snyder ‘reads certain sections of the [Michigan] constitution and reconsiders his actions.’….
“ ‘It’s cheating, sir, and it’s cheating good people who work,’ the judge told assistant state Attorney General Brian Devlin. ‘It’s also not honoring the president, who took [Detroit’s auto companies] out of bankruptcy.’”
She gets wrong what happened. Federal bankruptcy court would have dealt with the Chrysler and GM bankruptcies. But President Obama and the Democratic-controlled U.S. Congress stepped in and passed bailout legislation. The two auto giants were declared “too big to fail.”
By contrast, every year a few cities across the country declare bankruptcy. Detroit’s is the biggest city bankruptcy so far because its population now is around 700,000. But not that far behind are bankrupt San Bernardino at 213,000 and Stockton at 296,000. Combined, the two California cities have 508,000 people.
Obama
If Obama intervened in Detroit, he would have to intervene across the country, setting a new precedent of the federal government bailing out cities. And if that happened, you would see dozens, maybe hundreds, of cities declaring bankruptcy as a way to get federal funds. Thousands of cities everywhere, even financially sound ones, would become even more fiscally reckless, especially on pensions, assuming that, no matter what happened, the feds would bail them out.
Such bailouts soon would amount to hundreds of billions of dollars, goosing the already immense federal debt of $16.7 trillion.
And even if the president wanted to blow billions on municipal bailouts, the U.S. House of Representatives now is controlled by Republicans who wouldn’t cooperate. As a start, they wouldn’t bail out a city that voted 98 percent Democratic in the last election. And Republicans also wouldn’t want to bail out workers whose unions continually attack Republicans, while manipulating the system to push public employee pay and benefits to unsustainable levels.
As to the GM bailout, the latest estimate was that its final cost to taxpayers will be $25 billion. Just letting the normal bankruptcy proceedings go forward would have saved that money, while still reorganizing the company, albeit on terms not as favorable to the UAW and Democratic political ambitions.
Gov. Snyder’s office is appealing Aquilina’s decision and no doubt will prevail in the state’s own circuit court, which understands federal precedence in bankruptcy cases. Even if it loses there, the bankruptcy court will decide the case.
For California, this new Detroit drama will confirm that federal bankruptcy courts can set aside state constitutional protections on pensions.
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“The bankruptcy filing seeks to reduce all city liabilities, including pensions, by 90 percent”
…………………
These are the proposals. No one is even suggesting reducing pensions by 90 percent:
Automatic cost-of-living raises would be eliminated,
worker contributions into the system would rise.
benefits would be frozen
some would be switched to 401(k)-like defined-contribution
http://www.bloomberg.com/news/2013-06-20/detroit-emergency-manager-orders-probe-of-benefit-programs-1-.html
Even these proposals are just a starting point. They may be tempered by negotiations or legal decisions.
The glass is at least half full.
Hey John would it have hurt you any to refer to the President as President Obama?
Lame and predictable.
The sad part is ALL of the “bailout” money is BORROWED money, most from China and other nations, and that is absurd that the nation would borrow money to bailout a muni who engaged in a Ponzi scheme.
I think this all started with the Wall Street bailout by Bush, that still gets me furious, that main street would bailout irresponsible financiers. It all started in 2008 with the Wall Street bailouts.
Hey John would it have hurt you any to refer to the President as President Obama?
==
Obama hasn’t earned that respect yet, and I voted for him-once.
Poodle,
When I was In the military I remember an axiomatic notion that for centuries everyone accepted, You don’t salute the man, you salute the rank. The rule was in place so every chucklehead didn’t get to pass on the fitness of every officer til it became a sort of schizoid beauty contest. Of course with racism that all goes out the window on day one does it not?
This is merely reason 467 why republicans will remain in a place of weakness. Like the inability to pass immigration, or the push to repeal affordable care, u clowns are driving your brand into the deck,well, again. Americans are sickened by the ignorance and hate .
Teddt Steals, put down your crack pipe, no one that has posted yet is a Repuke. Just how daff are you queegy? 🙂
I hate BO……..wont even call him obama, let alone pres……wont capitalize his name either. And I dont care what you think Teddy. He deserves NO respect. He has tarnished this country. Any while Im at it…..I see you dont capitalize Republican, so whats your point.
Spinning them up and cutting them down.
Lol
Republican, there ya go!
You lads need lessons in civility. Among other things. Your admitted hate for the President
Is just street racism , sorry man. I was against Prrsident Bush but I treat him
With respect, grow up and have some class .
Ted, remind us all how respectful the Democrats were of George Bush II. Maybe my memory is faulty on this.
Mean spirited doomers….have no shame….shucks! So shocked.
Ted, the proper deference due by military to the President has to do with the fact that they work for (and must be willing to die for) their commander in chief. The rest of us are free to call an asshole an asshole. Seems you have zero knowledge of our country’s long, rich history of disrespecting our Presidents.
You really are an ignorant fool. Thanks for demonstrating that fact here (once again).
Dick– I said I was respectful. Are you going to defend disrespect
To the President because someone else did it first? Are you nine?
Richard’s getting personal. Maybe a large part of his portfolio is Detroit municipal bonds.
Dick,
I can see that u don’t read for comprehension or maybe you’re not
Good with abstract thought. I was not explaining the military chain of command
Little buddy but using an old military axiom as an analog to illustrate the concept
Of respect for the office. Are u saying that because some Dems disrespected Pres. Bush, your guy,
That now u can do the same to the next guy? Are you nine?
Ted melting down!! Good job RR 🙂
Attacking Teddy is futile…..he is the sage of CWD not a half wit doomer loser who whines at election loss after election loss…spare us…..you got forks in you…WELL DONE!
“Hey John would it have hurt you any to refer to the President as President Obama? Lame and predictable.”
Hey Ted, would it have hurt you to get your sycophantic pie hole off The Demagogue In Chiefs rear end? Lame and predictable.
So who does this partisan hack state judge think she is. She sounds as clueless and sycophantic as Teddy and Uhaul. Apparently the only qualifications for being a Democrat nominee for a judgeship is a room temperature IQ, a partisan mentality and complete contempt for taxpayers.
Don’t forget Uhaul – always restock the sanitary seat covers in the restroom and check the toilet paper and hand towel supply too. You can easily be replaced by an illegal so stay on your toes.
Dysphoric–
So in your world respect equals sychophant?
You are indeed
Dysphoric.
Teddy…ignore Dys….he appears unbalanced and off his meds….or does he have Randsburg heat stroke….poor sot…..go light on the lad….
I try to—-but he is such an easy padantic target!
How bout we talk about the issues instead of calling each other names.
This just what the dems want, is to change the subject from Detroit. Suddenly this whole comment section is about how we should respect the Pres. Teddy has done a brilliant job of changing the subject. The the conservative above have fallen for it, too.
Detroit looks like it was hit with an atomic bomb. The pics of Hiroshima and Detroit now, makes you wonder who actually won ww2. There were no Republicans in the food chain that ate detroit. 50 years of totall dem gov is the nuclear weapon that destroyed Detroit.
Hondo…
Honda—Great idea to stop the name calling and just exchange ideas. The challange of course is to do it with civility, no?
The constant barage of obvious disrespect to the President (by the way the oleader of the “Dems”) does not help. Its fun though to smoke out the many folks out here who actually admit “hatred” for the man (see above posts from YOUR colleagues). This obviously drives the child like ultra right fervor that forces them to treat him like a second class person. Sound familiar? Our nation did alot of that in the South in the last century.
Hondo…you are the issue….people like you thrive on confrontation….you came to the right place…..serving up Hondo as we discourse!
Hondo…what are your life goals? Have you improved your lot in the past five years? Why are you so miserable? Why iare CWD provocative articles so emtionally important to you knowing these writers are merely futile red meat hurlers getting paid to rile up unstable citizens.
…futile red meat hurlers…..
oh
my
Didya hear? Teddy broke his nose!
Obama sat down.
Didya hear? Teddy broke his nose! Obama sat down.
==
🙂
The usual loons checked in….so sad and troll-like. Why are you so crass and surly…..oh…my!
LOL–There doing the best they can Uhaul—- Pretty certain they had pretty strange upbringings to be so disrespectful and doom-like. There is not a patriot among em! If this was the revolution they would clearly all have been loyalists!
Hey— John—- The Ted System ™ likes the new look!
I wonder if the “reply” feature works?
The glass is at least half full.
Yes, new format is cool!.. except the comment font are not as dark as before….
Teddy, how’s your nose feeling, after Obama sat on it 🙂
Poodle grow up……your very disrepectful of posters…..no ideas…..just personal attacks….sick
You should always, “salute” the Commander in Chief.
seesaw, pipe down, if we want any lip off of granny we will go to the old foggies rest home 😉
OK why is it July 23, @ 6:11PM PDT and the comment posting time says July 24 @ 1:11AM???
comments about race, people’s age, jobs….the Poodle never makes a substantive point– just more troll like conduct…..and he LOVES this attention– even this post!!!
There ya go Poodle– hurry! type now!
Teddy…..so shocked such trash is allowed on reputable site like CWD.