Posted on 10/28/2013 7:45:37 AM PDT by whitedog57
Reuters may get the award for the worst headline of the year. “Detroit pension cuts ‘function of mathematics’ -investment banker.”
It just told me that Detroit pensions would be cut. But what you learn later in the article is pretty shocking:
“Buckfire, a Detroit native and investment banker with restructuring experience, later told the court the city plans to pay unsecured creditors, including the city’s pensioners, 16 cents on the dollar. There are about 23,500 city retirees.”
16 cents on the dollar? Quite a haircut! Well, that is what happens when municipal government spends too much money (inefficiently) and suffers a decline in the tax base.
detrev
And the leading expense in Detroit is public safety.
detexp
The result for the State of Michigan is elevated municipal bond rates and a credit default swaps on par with Europe. The green line is the US Treasury yield curve.
michcurves
the-problem-with-socialism-is-that-you-eventually-run-out-of-other-peoples-money-margaret-thatcher-politics-quote (1)
This has been posted, and possibly debunked, it is 16% of the unfunded portion of the pension liability i.e. the shortfall.
>> Will Obama bail out Detroit pensioners? I will wager yes.
To cover your bet and determine appropriate odds, I’d need to have a percentage breakdown of the pensioners’ race. ;-)
Buckfire, Buckwheats grandson?
elections also have consequences. Detroiters have been electing the wrong people for decades. Detroit’s chickens are coming home to roost. (thank you Rev. Jeremiah Wright.)
It is less cost to send in the troops and kill them. I see that.
Labor unions in Detroit, just proved the you reap what you sow. They loved sticking it to manufacturers, and now the little chicks are coming home to roost.
That’s much better than the GM bondholders got when Obama gave their savings away to his union buds. Many honest GM investors are now destitute after Obama punished them for saving and investing in GM.
Maybe they can track down where their mayors monies are?
They also loved sticking it to the taxpayers, who have largely gone Galt in Detroit.
Quite the opposite, Bammy will raid our 401s and other funds.
Late queer porn star “Buttfire’s” son who goes both ways.
Inferior cultures have consequences.
Coming to Social Security soon!
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