Detroit is bankrupt. Everyone knows this. Everyone has known it for months. It is not official, but it’s close.
The pension holders are going to see their dreams blown to dust. They are the cause. They will be the solution.
The state has sent in The Terminator. He can shut the city down. He can default in the city’s name. He does not have to compromise with any special-interest group. He holds the hammer.
Anything that looks like a nail soon will be hammered.
This is a foretaste of things to come. One by one, America’s cities are going to follow Detroit. It will take time, but the trend is clear.
It’s goodbye, pensions; hello, solvency. “But we were promised our benefits.” Indeed. But when a city goes bankrupt, the promises are broken.
“It’s not fair!” Bankruptcy doesn’t care about fair. It cares about solvency after bankruptcy.
“But we made plans!” Make new ones.
There are pensioners who thought they had it made. Things will be unmade.