Karl Denninger has pointed out [1] that these pension benefits that were cut as a result of the bankruptcy were effectively negotiated "at gunpoint and by fraud

Karl Denninger has pointed out [1] that these pension benefits that were cut as a result of the bankruptcy were effectively negotiated "at gunpoint and by fraud," and there was no true adversarial process in the negotiations, since the people negotiating for the wages and benefits could and did elect the people on the other side of the table. That alone should render the pensions unenforceable. However, the judge had to rule that the pensions were not enforceable, Michigan's constitution notwithstanding, because bankruptcy is black-letter Federal law. [2] The pensions are debts like any other, and pensioners have to get in line with all the other creditors. Anyone with a government pension had better pay attention, and, as the saying goes, "conduct yourselves accordingly." [1] - http://www.market-ticker.org/akcs-www?post=226468 http://www.market-ticker.org/akcs-www?post=226468 [2] - U.S. Constitution, Article I, Section 8, clause 4 - http://www.usconstitution.net/xconst_A1Sec8.html http://www.usconstitution.net/xconst_A1Sec8.html