President Obama has decided to secretly bail out Detroit and make its corrupt pension plan whole at the rest of the nations' expense.Which of course, means he lied about his commitment not to do so.
In order to sneak this past the American people, the regime is labeling this as 'blight remediation,' but the fine print allows the new city manager to shove it into the city's pension funds, which were looted over several decades by Detroit's Democrat politicians and corrupt public employee union bosses.
As the Detroit Free Press reported, the money's coming from a secret $7.6-billion slush fund the Obama Administration established called the the Hardest Hit Fund designed to help those 18 states hardest hit by the real estate collapse. Surprise, surprise, 11 of those 18 states (and the ones getting most of the cash) are either deep Blue enclaves or battle ground states with predominantly black urban Democrat populations. And the 7 of those states that are Red States likewise have significant black populations, like Georgia's urban Democrat stronghold in Atlanta. There's also looks like there might be an interesting correlation here between the areas hardest hit and a population of certain borrowers who received loans from Fannie and Freddie they weren't really qualified for normally based on those sharply reduced, politically correct underwriting standards doesn't there? And while the Democrats who controlled congress after January 2007 fought off any attempts at oversight of Fannie and Freddie during the Bush years.
Michigan is already the recipient of almost half a billion taxpayer dollars, and Detroit already received $320 million of your tax dollars in a separate bailout, so this $100M specifically earmarked for Detroit's pension funds is lagniappe, (a little extra) as they say in N'awlins.
So aside from the fact it's being done in secret without congressional oversight, why is this so outrageous?
First off, because it's racial politics written in big letters and a blatant political bribe to Detroit's public employee unions with the midterms coming on.
Second, because it sets a horrific precedent.Lots of cities whom have been Democrat ruled for decades have underwater pension funds. Looking at what Detroit's getting, what we're looking at is the old 'train pulling' logic..'hey sweetie, you did it for him, ain't I good enough?'
And finally, because of the nature of how Detroit's pension fund was looted. You see, while the politicians and union officials got the biggest , the rest of the pension recipients shared in the swag, receiving a '13th check' every year instead of any profits being re-invested to keep the fund solvent. They received it as what amounts to a political bribe to keep voting the some politicos and union bosses back into power no matter whether the fund did well or poorly.The constant looting of the pension funds was largely covered by simply raising taxes or diverting other revenues into it.
Meanwhile Americans with private pensions and 401K's aren't getting any bailouts and are getting hammered by higher and higher taxes to pay for the excesses of places like Detroit...and the other mismanaged Blue urban strongholds and public employee unions that are going to get in line behind Detroit for their share.