In the people’s great city of Detroit, where credentialed liberal ideologues have been running the show for more than 6 decades, things have not been going so well. OK, I am fucking around when I act sarcastic like this. Detroit is a disaster of epic proportions. The left created an unsustainable model that robbed the tax payers and incentivized business to move elsewhere, while the elected officials pissed away any and all prosperity. So now that the proverbial shit is hitting the fan, they are facing though choices. There is no money. Sure, Obama sent them a few tens of millions of US tax payer dollars, to make sure they could delay the inevitable until it was less inconvenient for the democrats, but the writing is on the wall. The end is nigh.
Case in point the pensioners, which are getting gold plated payouts from a drastically underfunded, some might even say unfunded, pension system, and the looming pension cuts. There was a hard reality check that required the city to cut pensions by a minimum of a third, but it looks like the marcists found another candyland solution
Detroit doesn’t have any money. Rather, it doesn’t have enough money: It cannot both pay its debts and run the city. That’s why the city filed for bankruptcy some months back, over the outraged protests of pensioners who stand to lose a big chunk of their monthly checks.
Today, those pensioners are breathing a little easier. The city seems to have struck a deal that will leave their pensions in better shape than previously feared. Instead of cutting those monthly checks by as much as a third, the city will trim them by less than 5 percent.
How did they make such a big change? In part by assuming higher investment returns:
The city initially factored in rates of 6.25 percent and 6.5 percent for the two funds, but eventually agreed that the funds could be presumed to do better — 6.75 percent — because of an improved outlook based on the funds’ 2013 performance as compared with 2012.
The city also promises lower or no cost-of-living adjustments, and less in the way of retiree health benefits. And the proceeds from a proposed deal, not yet agreed upon, to save the Detroit Institute of Arts’ collection by soliciting a mix of state and private funds to pay off the pensioners.
Yeah, this ends well, I bet. America, pay close attention: Detroit is our future with these credentialed nanny state elitist scumbags in charge.