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View Diary: Challenges to Detroit bankruptcy will be decided in bankruptcy court, judge rules (72 comments)

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  •  States Rights? (3+ / 0-)
    Recommended by:
    PatriciaVa, Loge, Victor Ward

    Article I, Section 8:

    The Congress shall have Power [...] To establish [...] uniform Laws on the subject of Bankruptcies throughout the United States;
    This power is reserved, should Congress choose to take it, to the Federal government explicitly.

    There's no "states' rights" issue here. Just depends on what Congress has enacted with respect to the issue of pensions in municipal bankruptcies.

    (Probably, the commerce clause alone would give Congress that power -- many of the debts would be interstate -- but there's no need to even go there).

    •  Why would State Legislature pass laws... (0+ / 0-)

      ...declaring the inviolability of pensions, if federal bankruptcy law trumps them?

      Only explanation is that state legislatures consider pensions inviolable, except in case of bankruptcy.

      In which case CALPERS is wrong.

      Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project. www.hamiltonproject.org

      by PatriciaVa on Wed Jul 24, 2013 at 03:55:40 PM PDT

      [ Parent ]

    •  More obviously, (0+ / 0-)

      it doesn't make any sense for two different authorities to rule on the dischargeability of Detroit's obligations to creditors.  Risks inconsistent judgments.

      Difficult, difficult, lemon difficult.

      by Loge on Wed Jul 24, 2013 at 04:23:09 PM PDT

      [ Parent ]

      •  There won't be conflicting rulings... (0+ / 0-)

        The Michigan Supreme Court is in Snyder's pocket. It's 5-2 GOP. It's not going to rule that he fucked up on an issue this big.

        If the Federal Judge rules Snyder fucked up on the basis of Michigan law, they will rule the Federal Judge is wrong about Michigan law, and then he's got no choice but to go along with screwing the unions.

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