RSSThe Detroit saga is a clear case where the governor suspended the democratic body managing Detroit and placed a “crisis manager” in place, who happened to also be a partner in the law firm who represented the bond holders of Detroit’s municipal bonds in court where it was decided that the bond holders would be made whole at the expense of Detroit’s assets and public pension fund. When is it the case that bond holders, who invest at risk, capture their reward from selling off the city’s collective commons. This pillaging, where bond holders are paid off by a bankruptcy court is unprecedented and was condemned as unimaginable by classical economists like Adam Smith, JS Mill, and Marx. “Capital markets have no need of men making money in their sleep.”—John Stuart Mill.
The real ravage that is being done to this country and to its cities is being done by Wall St. and the local politicians who feed them local tax dollars. Detroit is the prime example of how a city is exploited by bond holders and a state governor who is a Wall St shill. These parasites do far more damage to our cities than anyone else.