Monday, June 17, 2013

"Some unutterably depressing reading"

Felix Salmon takes a look at the Detroit Proposal for Creditors. He summarizes "the litany of municipal woes," including a "crumbling" infrastructure (40% of its street lights are out of order).  And he points out that among the big losers here are going to be Detroit's municipal retirees, whose pension payments are going to be cut.

Still, he says the Michigan AG is "absolutely right" that the DIA's collection "is off-limits when it comes to satisfying the obligations of the City of Detroit."  It's not clear to me whether he means that as a statement about what the law is, or what he would like to see happen.