Jun 222013
 
Moratorium NOW! demands debt cancellation outside EM creditors’ meeting June 14, 2013. Orr declared a phony moratorium in which defaulted debts will be paid off by insurers hired by the City of Detroit.

Moratorium NOW! demands debt cancellation outside EM creditors’ meeting June 14, 2013. Orr declared a phony moratorium in which defaulted debts will be paid off by insurers hired by the City of Detroit.

by Diane Bukowski, Voice of Detroit, June 20, 2013

Wall Street creditors fully insured, will get paid

Orr, advisors declare State Constitutional pension guarantee invalid

Want residents, workers, retirees to take severe cuts

Drastic action by unions, peoples’ leaders needed

DETROIT – According to business analysts, the city’s pension funds and unions should not be fooled by Detroit Emergency Manager Kevyn Orr’s declaration June 14 that the city’s creditors will make equal sacrifices under his plan, including a “moratorium” on $2 billion in “unsecured” debt service.
The plan also calls for investment of $1.25 billion in public services over a ten-year period, most of it in “public safety” (police and fire.)
In fact, according to reports from The Bond Buyer and Bloomberg, corporate creditors will get paid in full for any defaults, since the city PAID to insure their debt when they floated the bonds.

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