Oopsie, guess he’s not too “dishonored” by letting Detroit fail. I thought he said during campaign with Romney that he would never let Detroit go bankrupt. I guess it just isn’t that important to Valerie Jarrett any more…
Detroit, one of the 20th century’s great American cities, is now almost certain to stagger through the early 21st century in Chapter 9 bankruptcy. The WSJ reports that the chances of out-of-court settlement are scant. Emergency manager Kevyn Orr is unlikely to reach agreements with enough of Detroit’s bondholders and pension funds to restructure the city’s debt:
Mr. Orr “has taken such a hard line with creditors that a bankruptcy filing is inevitable,” [research advisory director Matt] Fabian said. […]
A “free fall” bankruptcy filing—one without a clear plan or much agreement beforehand with creditors—is a likely outcome.
Buried in the middle of the report is a telling climax to this sorry tragedy:
Any hope of a federal bailout to avert bankruptcy fizzled last week after Mr. Orr spoke with the White House, including Obama confidante Valerie Jarrett, according to city and White House officials.
This is where blue governance has brought Detroit in the end: not even a liberal Democratic administration will step in to save the pensions of thousands of public workers and African Americans, condemning countless innocents to having their pensions and health benefits gutted in bankruptcy court.