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.