Monday, July 22, 2013
More Bad News From Detroit
Pensioners in Michigan are getting nervous about their own future and livelihoods. With the financial collapse of Detroit, Michigan many retirees may face a financial disaster of their own. The city of Detroit owes $19 BILLION dollars that it doesn't have. Just about half of that number is slated to pay for pensions and health care benefits for retired employees. The other half is owed to bond holders.
Kevin Orr is the new city emergency manager. He's telling retired police, firemen, city workers, and teachers that they will not see any cuts in their pensions or benefits for at at lease six months. THEN WHAT? Yesterday on TV Orr stated that the pensions and healthcare benefits WILL HAVE TO BE CUT sometime. He said "There are going to be some adjustments… We don't have a choice."
Part of Detroit's bankruptcy process is to sell-off some of its assets. This includes its international airport, Belle Isle, and other city landmarks. Let's hope they can do this and keep those pensions going as retirees expected them to do so.
The last thing about this situation is that the Federal government should keep out of this. Detroit put themselves into this situation for a variety of reasons. It should remain a LOCAL problem without Big Government interference.
Translated: NO MORE BAILOUTS! It's time to face the music.