There was an article in the Detroit News about what Emergency Management could look like:

-Declare Default on all municipal debt
-Business owners pay 20% surcharge on all revenue
-All city services to be serviced at the lowest cost possible, public or private

In other words, everyone is gonna take a hit. And it wasn't listed there, but I'd put pensioners up there with municipal debt. Whether its bankruptcy or EM, this is what's coming.

But just think...the result of it in the long run will be better services and a healthier economy for everyone.

That's why bankruptcy is the best approach. Toss EVERYTHING out. Bondholders, pensioners, salaried staff and union contracts. Then make sensible decisions on how to reassemble something that works.


Exactly. "What works" is the #1 and only criteria for what changes need to come down.