NEW YORK TIMES Editorial: The Detroit bankruptcy case has been cast as a contest between bondholders and pensioners that can be resolved only by shared sacrifice.
In principle, we have no problem with that, though in practice, the pensioners’ fair share will have to take into account their extreme vulnerability: Public pensions are not federally insured and many municipal retirees do not receive Social Security.
What we do have a problem with is shared sacrifice that does not seem to apply to the big banks that abetted Detroit’s descent into bankruptcy… (more)
EDITOR: We believe that much the same outside of the bankruptcy court is being orchestrated by Gov. Tom Corbett to protect the bond owners at tax payers expense and gain their gratitude when it comes to raising funds for his 2014 re-election attempt. Much of it is by purloining at least a hundred million dollars from the Lancaster County Solid Waste Management Authority (LCSWMA) through pricing the trouble plagued Harrisburg incinerator at least three times its minimal market value.
We have a sound process for fairly resolving insolvency. Corbett and his cronies are doing everything possible to avoid it. Within a few days, Bill Keisling will share still another reason why.
If Harrisburg goes into bankruptcy and the LCSWMA still wants to acquire the incinerator and mountain of ash containing toxic waste, it likely will buy them at a fraction of the current exorbitant price.
