[Ed. Note: Wall Street’s program to gut cities continues. Without a reimplementation of Glass-Steagall, the entire nation will soon go the way of Detroit.]
from Zero Hedge:
The judge has decided to over-rule both objections and that nothing with regard the Chapter 9 process is held up.
- *DETROIT JUDGE OVERRULES OBJECTIONS CLAIMING BANKRUPTCY INVALID
- *DETROIT JUDGE SAYS HE HAS POWER TO GRANT GOVERNOR SUIT IMMUNITY
- *DETROIT BANKRUPTCY FILING IS VALID, FEDERAL JUDGE RULES
- *DETROIT BANKRUPTCY ELIGIBILITY TO BE DECIDED IN FEDERAL COURT
Now, we proceed to the Federal eligibility hearing (whether the city is eligible to proceed with Chapter 9). Remember this took almost a year with Stockton, CA. For now, Unions 0 – Orr 1 but it seems like neither side will be a winner when this is all over (which makes sense as while there is the law and the Obama-law, there is simply no money). The current plan (for now rejected by creditors) means a 90% loss for muni-worker retirees, 81% loss for unsecured creditors, and a 75% loss for secured creditors.
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