First of all, there is a question as to whether Detroit is eligible for bankruptcy.

Second, seniority in bankruptcy here is clouded by the jurisdictional reach of the State of Michigan. Bankruptcy is an administrative procedure and thereby subordinate to state law.

Third, seniority in bankruptcy is further clouded by the likelihood of criminal behavior on the part of claimants. This is an issue because of the widespread criminality on the part of banks, particularly JP Morgan-Chase. There is also the possibility [[likelihood) of ongoing criminality on the part of the EM. A criminal cannot use bankruptcy as a means to further his activities or hold ill-gotten gains.

Fourth, the real issue is not Detroit's insolvency but Michigan's. The entire thrust of the Detroit bankruptcy is to force obligations of the state onto Detroit where these can be discharged favorably onto it [[Detroit). Otherwise, Detroit's pension obligation will adhere to the State ... as they adhere right now.

This is the real bottom line: Detroit is ruined but so is Michigan which is likely in worse financial shape. I don't have the figures in front of me, but Michigan is another big, rust-belt, behemoth like Illinois and New York, with vast public infrastructure costs -- of which public employees are a fraction -- these costs have ballooned and cannot be met, without a Federal bailout.

Right now, the State is paying Detroit's ongoing government expenses: public safety, teachers, bond coupons, etc. They can do so because they [[Michigan) can borrow as Detroit cannot.

BTW: Virginia is broke, too. It is a 'right to work state' with no public unions ... but tens of thousands of miles of costly roads that do not return anything for their use ... as well as the hundreds of billion$ in debt taken on to create them.