Friday, July 19, 2013

Judge throws out Detroit bankruptcy bid

In a brave attempt to protect Detroit's 21,000 pensioners, Judge Rosemarie Aquilina ruled today that the bankruptcy filed by emergency city manager Kevyn Orr was invalid.

Under Michigan law a bankruptcy cannot be used to unwind union contracts or diminish the benefits of retirees.

Those Michigan laws are a holdover from another era, an era when there was a social contract recognized by all and codified in law.

That was then, and this is now. The crew in the state house now will work tirelessly to overturn those laws and Judge Aquilina's decision. More contemporary mores will prevail, ie the bond-holders will be privileged before the retirees, who can expect to be out of luck.

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