Killing the golden goose does have its downside-----In Detroit, there's just no money

In Detroit, there's just no money | The Detroit News:
"Looking for the truth at the bottom of Detroit’s bankruptcy? Hard to find words much truer than these from Kevyn Orr: “There’s just no money.”

That was the emergency manager’s answer when I asked if there’s any alternative to slashing the pensions of city retirees to erase $11.5 billion in unsecured debt.

What if he heeded the pleas of the union protesters outside the federal courthouse Tuesday and demanded the banks forfeit 100 percent of the debt they hold, instead of the 90 percent Orr reportedly has asked for? Would that spare the pensions?

“Detroit would still be insolvent,” Orr replied.

Convincing the banks to walk away from everything they’re owed would give the city $2 billion to work with — but remember, it will already likely get $1.6 billion of that. By all means, stick it to the banks, but don’t pretend the additional $500 million to be gained in doing so will help retirees."