[QUOTE=DanaT;19490692]Contracts are broken and modified all the time without bankruptcy. And your point?
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). There is a legal process that must be followed. So with regard to pensioners, the city/country/state can not simply do as it pleases. This ain’t eastern airlines.
Many many contracts are broken or modified without bankruptcy. In fact, most times parties prefer this because there are more losers in bankruptcy. Losers? SO what? If the pensioners are to lose... let everyone loose everything. No reason the pensioners should have to soak it up on behalf of anyone else.
I have yet to see a case where someone who didnt enter into the contract has to pay bills for the contract in bankruptcy. All you need is a judge... a creative judge. Why... one just managed to shove nationalized healthcare up the nose of America by declaring a mandate a tax. Imagine that? And... he was appointed by a republican. Gee! Looks like when it comes to the law, all you need is the right kind of judge and you can make the law say anything you want it to say. Who’d of thought it?
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. To tweak a line from William Munny, “Should hasn’t got anything to do with it.”
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. Why don’t you trot yourself down to the local dealership... and float the loan... and buy the car. Then... dump on paying. Let your wife try to tell them that they can’t take your house... etc. because the house also belongs to her and she didn’t buy the car... or whatever it was you wanted. You’ll probably sleep on the couch on the sidewalk while the house goes away at auction, and your wife will probably divorce you, but what’s that to the bank and the dealership. They’ll get whatever they can out of you, regardless of how it impacts anyone else.