If Bondholders are made whole in this deal....
Quote:
Originally Posted by
Delray
Someone please correct me if you have specific alternative numbers, but my understanding is that the City's financial problem is almost entirely a function of long-term liabilities [[bond indebtedness, pension and retiree health obligations). You could cut current services virtually to zero and would still struggle to stay current on the long-term liabilities.
Services will be cut, nonetheless. Pain must be inflicted as part of the morality play.
Gilbert, Illitches, Magic Johnson, Penske, etc., etc., will make out like bandits, snapping up yet more city-owned assets at fire-sale prices. [[But not DIA masterpieces. Get real.)
The unions will have to give up a lot, just as they did with the GM restructuring.
It would not surprise me at all if current bondholders got out of this whole, however. Maybe the Federal Reserve will move some "D-bonds" onto its balance sheet? Or the State Treasury? I would not rule it out.
The script for this story has already been written. The winners will be the folks who always win. And the losers will be the folks who always lose.
Sounds like a worldview issue. If bondholders get made whole in all of this, I will write-in Joann Watson for every open position in the 2014 election.