[quote=SD Realtor]”When you say “all creditors,” you’re referring to bondholders, too, right? After all, if labor is supposed to take a haircut, then capital should take a haircut as well.”
Of course!
As you know, there is generally a priority to any and all parties. So when there is a default and a liquidation occurs the established priority of ALL creditors shall be followed and the obligations shall be dealt with in that priority.
Unless of course, you want to change the laws to accommodate your argument. Sorry this is not Venezuela.[/quote]
Then we’re in agreement.
BTW, I’m not the one who wants to change laws to accomodate my beliefs (see Pri’s post, below).
Also, you might want to check on the impact of converting to DC pension plans. A lot of people regurgitate the rhetoric they hear from the megaphones of the 1% (the MSM and related propaganda pushers) without an understanding of how these pension plans work, or why they exist in the first place:
[quote=harvey]States cannot file for federal bankruptcy protection.
But states can change their constitution. In California this can be done through a popular vote.
The legal question would be whether a state can change its constitution in a way that can void existing contracts.
Pension reform will likely play out like this:
– Ballot initiative passes that modifies the state constitution; voids or modifies labor contracts
– Unions challenge legality of the state constitution in federal courts
– Federal courts decide whether they have the authority to overrule (probably Supreme Court), and then whether they will overrule even if they have the authority
The outcome depends upon whether the enforcement of contracts between a state and its citizens are under the authority of the federal government. This is probably an obscure area of law that hasn’t been tested often. I have no idea how it will play out.
Precedents will likely occur in other states (e.g. Michigan) before California reaches this point.
I’ve been corresponding with my state representative for a while about this. People are working on it. It’s going to be a tough fight, bit it is a necessary one.[/quote]
