Detroit retirees brace for pension cuts - Encore - MarketWatch

Detroit retirees brace for pension cuts - Encore - MarketWatch

Bankruptcy is not just because of unions. It is because the Fed keeping interest rates low. It is because the city is a shell of its former self, because the industry did not quickly adapt to the Japanese competition back in the day.

Keep cutting pensions and you just shrink the middle class more and more. In the long run, add this behavior to the hoarding that is going on on Wall Street, and pretty soon the middle class of the US will be unable to buy the excess goods produced by the world.

Yes, this is killing the golden goose of world prosperity one step at a time. And then what? 

Comments

  1. The state of Michigan is responsible for its municipalities and that includes Detroit. I don't believe pensions should be considered in the bankruptcy process. That is payment for services rendered and far different from an investor who purchased city bonds to make a profit. Why isn't the state stepping up to at least ensure the city retirees are taken care of? Convert their pensions to state pensions and do the right thing.

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