The inevitable has happened, more to follow?
The city of Detroit filed for federal bankruptcy protection on Thursday afternoon, making the automobile capital and onetime music powerhouse the country’s largest-ever municipal bankruptcy case.
While I understand all the usual arguments, that they brought this on themselves, that progressives should never be allowed access to municipal power or access to tax revenue, and that like Hostess, with their intransigent unions unwilling to bend, sometimes you have to burn it down before you can build it back up, I don’t think this should sit well with anyone.
A clear parrallel to Obama’s America comes readily to mind, this is what the country has in store for it. Profligate (deficit) spending, a stagnant (receding) economy, an ever growing of a dependent class,a supplication to the unions, and a total lack of accountability to genuine tax payers abandoning any fiduciary duty to act responsibly, this will be America’s fate.
Mr. Snyder wrote in a letter dated Thursday to Mr. Orr and Michigan state treasurer Andrew Dillon that he knows many will see this as a “low point” in the city’s history but he said he also thought that this will be “a chance for a fresh start, without burdens of debt it cannot hope to fully pay.”
Yeah, too bad the road to bankruptcy will be strewn with the dead corpses of financial futures, thousands of retired municipal workers who did their 30 years faithfully, now they will see their pensions, that which was designed and paid into to support them in retirement, reduced by 90%. Most general obligation bond holders are insulated through insurance. At the very least they can write off their loses to counter any capital gains the company made that year. But the little guy, the individual who needed that money to live, and is now destitute, nobody deserves that fate.
Individually transforming America, one city at the time, this could be a very large domino, and a precursor to what we as a nation have to look forward to.