City of Detroit Files for Bankruptcy Protection

[TexasT]

"You'll likely never see GO bonds freely given like they are now [[if Orr is successful in his argument)."

GO bonds aren't given out freely. They have to be approved by the elected officials and voters. The only thing it accomplishes it making it that much more expensive for future bond obligations, which takes money out of the pocket of every taxpayer in Michigan and puts it into the pockets of Wall Street financial firms.

They are given out freely from the bondholders side, which was my implication. And it doesn't always require approval of voters.

It does make it more expensive for future GENERAL obligation bonds. Perhaps municipalities should be more careful with those anyways...there are safer, perhaps more responsible methods of municipal finance than virtually unending access to GO bonds.