Page 837 - Pensions News Today

This ruling puts the challenges on hold. they have yet to make a decision about the merits in the case. the retired workers, what they are concerned about, pensions. big cuts to their pensions. they rely on their pensions. in a bankruptcy, they fear it will go away or cut dramatically. it will have a big impact on it. >> to be able to retire and have money there. its a concern. >> librarians and people depending on a pension. it will not be there in bankruptcy. we know it now has a change. we ...

>> steve: business alert and breaking new information about detroits plan to come back from bankruptcy. its going to try to make the city smaller. our next guest broke the story. hes the author of a book. talking about "fox business" networks charles gasparino. good morning to you. >> thanks for having me. >> steve: the idea is, theyve got limited option, the city of detroit. >> they dont have a lot of assets. >> steve: except land. >> right. its one of the biggest cities by land mass in the cou...

Personal drama of candidates. >> thats ironically, thats what weiner is saying and the ultimate act hes saying its not about me. hes saying and using the talking points youre using but in reality it is about him. do you get kind of angry? you know, youre a serious politician. spitzer is ahead of you not polls -- >> for now. >> for now. good answer. [ laughter ] >> will coming. >> you got a launch on jay leno and jimmy falon, this culture, it seems like awareness at any cost beats less awareness....

Them. you know, if we were in a big sur plus, maybe we could have a discussion. were a trillion dollars short so we dont have any money to send them. but i have said the silver lining for detroit and michigan is you can come about through bankruptcy recovery. individuals through bankruptcy can get a second chance. government officials will be paid maybe the same as private officials, private employees and not twice as much where their pensions will be equivalent to private employees and their he...

Handle their own credit problems from chicago to north las vegas all over the country. >> michael, its not just the big cities, michael, of course as we all know. its the federal government. its the state governments. its the local governments. its also private companies. everybody in america right now is facing a crisis. all these different entities because of pensions, because of retirement. its just demographics is destiny and demographics is blowing up in detroits face and everybody elses. >...

Them. you know, if we were in a big sur plus, maybe we could have a discussion. were a trillion dollars short so we dont have any money to send them. but i have said the silver lining for detroit and michigan is you can come about through bankruptcy recovery. individuals through bankruptcy can get a second chance. government officials will be paid maybe the same as private officials, private employees and not twice as much where their pensions will be equivalent to private employees and their he...

Detroit problem can be solved without help from the state and federal government. self-help will not work in detroit. theres not enough left there in terms of an economic base and finances. >> what happens on the near horizon for retireees. public employee pensions. what happens to their checks? >> nothing immediately. yesterday was a very important day in detroit. federal bankruptcy judge said all the appeals to stop this process and stop any reductions at the moment have to go away. the judge ...

There would be some return on the back end if i serve 25, 30 years on this job ill be taken care of, my pension and health care i paid into it. it was part of the agreement that i entered into. now im not going to get at least half of it in some cases. what do you say to that man or woman? >> theres two schools of thought. conservatives would say you never should have asked for that. your union should never have demanded those kind of benefits. they were unsustainable. this is as much as the uni...

>> now you can see how bad it is. >> why did it come to pass? detroit? >> detroit ran out of money. its that simple. the thing about detroit that makes it different is it shrank so fast and lost its tax base so fast. the issue now is whos going to pay for this money that was promised in the past? they didnt have the money in the past. they just promised that it was politicians no longer on the job. this has been a big problem throughout the country. thats why were going to see these blisters pop...

In fact they cant pay their bills any longer. you cover companies every day. when company cant pay its bills it goes bankrupt. bankruptcy is not such a terrible option. it allows a company or in this case a city to hit the reboot button and started over again. why is this bad news for the unions? because they may be the big losers here because the big pensions, you get to rip up those contracts potentially and start renegotiating them all over again. >> stuart: do you think the dominos fall, det...