EDITOR: Your July 23 editorial, ironically titled “Pension realities from here to Detroit,” could have more honestly been titled “Pension theft from here to Detroit.” Another aspect of the bankruptcy of Detroit is the money the city owes its other creditors. You probably know they are the same big banks that the public is constantly bailing out when they fail to make good business decisions.
I wonder why public discourse on the issue of public pensions is devoid of debate on which city obligations are the most important and which are the least. Which obligations should be honored and which should be foreclosed? I think a public institution should honor its contracts with its employees before any of its contracts with lenders when it declares bankruptcy. Why is debt to banks more important than debt to people?