Wednesday, August 14, 2013
Detroit Bankruptcy: As Its Own Worst Enemy, the City Got What It Deserved
If the residents of the city of Detroit want to blame any person or
organization for its Chapter 9 filing, they only need to look as far as
the unions that controlled labor there and the politicians who ran it
over the past four decades. Detroit earned its bankruptcy the easy way —
through greed, the desire for political power and poor planning.
Kevyn D. Orr, the city’s emergency manager, offered all interested
parties a likely way to avoid the bankruptcy filing just weeks ago.
Employees of Detroit, past and present, could share the pain of the
restructuring of financial obligations with bond
holders. Each blamed the other for the city’s problems. Each said the
other should absorb the brunt of a restructuring. Neither budged. Orr
ran out of options, as two city pension funds went to court to try to
protect their assets, motivated by a final grab for Detroit’s money.
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