Court to decide if Detroit really is broke

[steve2470]

http://www.reuters.com/article/2013/10/23/us-usa-detroit-bankruptcy-idUSBRE99M03K20131023

(Reuters) - In a federal court building in downtown Detroit, beginning on Wednesday morning, the largest municipal bankruptcy filing in U.S. history comes down to a single question: Is Detroit bankrupt?

Federal bankruptcy judge Steven Rhodes will begin hearing arguments on the crucial issue of whether Detroit is eligible to restructure its debts and liabilities under Chapter 9 of the U.S. Bankruptcy Code that applies to municipalities.

The hearings will pit retirees, pension funds and unions trying to preserve retirement payments to city workers against Detroit's state-appointed emergency manager, charged with righting the city's finances.

Detroit clearly is struggling. More than one-third of its residents live below the government poverty line. There are some 78,000 abandoned structures and just 40 percent of the street lights work. Detroit's population has shrunk to less than 700,000, from a peak of 1.8 million in 1950, and only 53 percent of property owners paid their 2011 property taxes.

[duffyduff]

1. The bankruptcy court has no business being involved

The U.S. Constitution overrules bankruptcy courts. States MUST honor their obligations, including pensions and the like.

The emergency manager, a crook, should be thrown in prison.