Some of you who follow my blog nationally may not know what is truly happening in the Detroit Bankruptcy process. In fact, many people in Michigan have very little insight as to what is really going on. However, you should, because your city or county could be next.
The Governor of Michigan appointed an “Emergency Manager” (who is a bankruptcy attorney from Washington, D.C.) for Detroit who has the power to virtually render any decision by an elected official void. In other words, the EM nullifies the election of citizens of Detroit. The EM was appointed by the governor behind closed doors (i.e. no public transparency). After a superficial attempt to bargain with debtors, a process that the bankruptcy proceeding exposed as bad faith negotiations, the EM filed for bankruptcy an sought to include the pensions of city employees (even though those pensions had been protected under the Michigan Constitution). The EM hired his own law firm to do the bankruptcy at an enormous cost.
Getting access to the pensions is a priority agenda of the Governor and his EM. Wall St. banks have been systematically looting public pension funds all across the country, a process detailed in Matt Taibi’s Rolling Stone article in September 2013. Even though the governor of Michigan has given hundreds of millions of dollars to build privately held baseball and hockey stadiums, and we have all given hundreds of millions to bail out Wall St. banks, they are going after pensioners who average $19,000.00 per year of payments. Looting the public employee pension funds will provide only a fraction of the city debt, far less than what is owed to corporations. Those corporations can afford to lose tens of millions without missing a beat, but these pensioners and the poor in Detroit can’t afford to lose pennies.
Detroit is first and Wayne County will be next. Your city and county will get a visit from the same silk stocking vultures circling Detroit now.