Because I'm wondering if all creditors are feeling the pain equally or if the city retirees are bearing the bulk of the costs.
I'd also like to know if any of the former mayors and councilmembers who drove the city into the ground and who may also have city pensions are covered by the same plan as the rest of the city employees are. If not, then do they get 16 cents on the dollar as well?
That’s what I thought. Your inner liberal is showing. Your assumption that these retirees are innocent victims is just breathtaking. They are not victims...THEY ARE THE PROBLEM. They demaned these provisions, they voted for those who promised them - they are the ones who were so ignorant as to think these were realistic or sustainable.
This is at least a partial answer...although the city employees through their unions pretty much caused the problems so they should be the ones to bear most of the burden!!
“Because I’m wondering if all creditors are feeling the pain equally or if the city retirees are bearing the bulk of the costs.”
Bonds are sold with different risk levels. A secured creditor bond probably has to be paid in full. But Obama changed 200 years of law when he dictated that Chrysler’s secured bond holders would take only x% and he gave the rest to the unions, which had ZERO rights. Let’s say Chase Manhattan bought a secured bond for $100 million dollars plus 12% interest. I believe they are owed all of it so Detroit would have to sell assets to pay the amount. It has to be this way or the system of getting loans based on bonds collapses and the way cities are financed disappears.
The city workers are not secured creditors.