Motor City is Bankrupt- Page 2
Motor City is Bankrupt
TheatreDiva90016
Broadway Legend Joined: 4/10/04
#25Motor City is Bankrupt
Posted: 7/21/13 at 5:22pm
mikey2573
Broadway Legend Joined: 12/28/10
#26Motor City is Bankrupt
Posted: 7/21/13 at 9:05pm
The main issue facing the city of Detroit is the huge obligation it owes former city workers in pension plans. These pension plans were negotiated via unions that worked hard to elect the people they were going to negotiate with (most of whom had a D after their name). And Detroit is not alone; Chicago and LA both have over $30 billion in unfunded liabilities.
Even FDR was against unionizing public employees.
Updated On: 7/21/13 at 09:05 PM
#27Motor City is Bankrupt
Posted: 7/22/13 at 11:53am
Coupla questions regarding public pension plans.
1. Are public pension plans like the City of Detroit's eligible for insurance coverage offered by the federal Pension Benefit Guaranty Corporation (PBGC)?
2. What would happen if PBGC became insolvent? Note: during the most recent Wall Street meltdown some attorney friends of mine were suggesting that PBGC was grossly underfunded to withstand a tsunami of investment bank bankruptcies.
I'm told that San Diego, CA is not out of woods either.
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