Originally Posted by CAcop
The crux of the issue with pensions is the contract. If the courts allow the government to violate contracts without bankruptcy then they can violate any contract.
Contracts are broken and modified all the time without bankruptcy.
Let me give you common examples. Repossession of cars. Foreclosure on property. Evictions due to non-payment of rent. Airline tickets (i.e. you had a contract to get you from point a to point b in a certain class of service on a certain day at a certain time..yet that contract is often broken).
Many many contracts are broken or modified without bankruptcy. In fact, most times parties prefer this because there are more losers in bankruptcy.
I have yet to see a case where someone who didnt enter into the contract has to pay bills for the contract in bankruptcy.
In general if state X doesn't have the money to pay their pension obligations ONLY state X should be required to make it right. There was no representation with the contract from the other 49 states. If the other 49 states were not involved in making the contract, no way on gods green earth should the be liable for payment.
This is like me making a deal on a shiny nee ferrari and then not being able to pay for it. The deal was bewteen the ferrari dealer, the bank, and myself. But, when when I file bankruptcy, the bank wants their money so they get the court to say CACop and BruceV are responsible for the money owed on the ferrari but I get to keep the ferrari.