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Oops: Only Morality Stands in the Way of Public Unions and Our Money

Original2 Wrote: Aug 11, 2012 10:17 AM
How is it possible that a muni can file bankruptcy outside of a court and a bankruptcy judge? Shouldn't the bankruptcy court be the one to decide who gets paid what? (I realize full well that judges are part and parcel of government...) It would be like me declaring bankruptcy and claiming I want to pay my bookie and the liquor store in full, but I'd like to scr&w the doctor's clinic and my plumber- since I won't need them again until next year, maybe.
scott s. Wrote: Aug 11, 2012 4:18 PM
Yes, that's why it's a voluntary Chapter 9 filing in U. S. Bankruptcy Court for Eastern District of California, Case 12-32118 and why Assured Guaranty (insurer of the bonds) has filed a preliminary objection to debtor's Chapter 9 petition and statement of qualifications with the court (to be heard 23 Aug).
Richard31 Wrote: Aug 11, 2012 7:39 PM
Thank you for the name of the insurer. Now I can check to make sure I have nothing invested in them, either.

Just throwing more premiums down the rathole if they think they can win this on in California.
Reginald10 Wrote: Aug 11, 2012 12:50 PM
Good point. The "Receiver" should pay off the bondholders FIRST, as I believe the law requires.

Of course, that didn't happen in the GM bankruptcy. (I wonder what the statute of limitations is for bankruptcy fraud?)

If you follow the rule in life to follow the money, the money trail increasingly is leading to a union pension, a union wage or a union contract. And it’s putting America’s cities out of business.

As more municipalities begin to eye bankruptcy proceedings as a way out of their financial mess, many believe that one great advantage of bankruptcy proceedings is that it will allow the nullification of fat union wages, pensions and other benefits that taxpayers in the private sector don’t get.

But if the example of Stockton, California serves as a guide, city officials would rather screw...

Related Tags: Unions Money Morality