Just watch what happens in the bankruptcy. The union thugs will get to keep their pensions. The unsecured creditors..contractors and small business..will get zero. The bond holders will get a major hair cut. Just look at what happened with GM as a guide. The only question is whether or not the court can raise taxes.
Declaring the type of bankrupcy they filed for allows the city to void on union contracts, reduce medical payments even to retirees, reduce salaries. The city will enter into a structured bankrupcy, not a full blown bankrupcy where everything would be sold off to pay creditors. The unions will lose and the current workers.
and what happens when nobody wants their bonds any more?