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|Subject: Re: Detroit files for bankruptcy||Date: 7/19/2013 11:07 AM|
|Author: just1trader||Number: 35019 of 36083|
The radio said pension holders (creditors) of the city of Detroit are likely to receive 10 cents on the dollar. Go from $1600 per month pension to $160 per month. Wow that's a crime.
The real "crime" was to over-promise and to under-fund, and Detroit isn't the only municipality that did that. As Meredith Whitney argues in her recent book, Detroit's bankruptcy is merely the first of many that will be happening as cities, counties, and states make the necessary adjustments between revenues and expenses.
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