As Predicted by FSN months ago, Bankruptcy Court Judge Steven Rhodes has give Detroit’s bankruptcy filing a green-light. More importantly, he has ruled that the city’s pensioners can receive a haircut to their monthly payments, although it will be subject to the Court’s oversight and care must be taken to see that it is kept to an absolute minimum. Judge Rhodes said that Detroit is broke and should have filed years ago. Wonder why they didn’t? Expect a rush of towns, cities, counties and other governmental entities to file in the coming years. This decision, while bad for municipal pensioners across the country is a lifeline for the taxpayers.
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