Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (50580)	8/11/2013 8:44:45 AM
From: Bearcatbob	Respond to of 85487

This is actually a substantive conversation for this thread. The handling of the Detroit BK and likely the Illinois BK to follow will be precedent setting. Recognize that in the auto bailout Team Obama has already trashed the law ( law means to them when it gets in their way). They can always give least untruthful answer when questioned. Anyway - one of the arguments for doing business in the US is that the rule of law applies and that contracts actually mean something. If we see this bastion of American democracy trashed for political convenience it will simply be another step in hurting the least among us - the ones the trashing of law is supposed to help. When I still worked and participated in contract negotiations one of the points was what state law applied. Way back Texas law was one not accepted - I believe that has changed. I do not think Louisiana law is still a desired contract basis. Ultimately when there is no money - something has to give. Not only is Detroit in arrears on its obligations it is operating at a deficit. Ergo the problem is not only fixing the past - but also fixing the future. In looking at Detroit - and Chicago - it is not enough to simply call them northern rust belt cities. Other northern cities are not in such bad shape - eg Cleveland - although our baseball team is entering the ICU ward. Bob