Motor City Bailout Is Out Of Gas

Having not bailed out any other municipality that has declared bankruptcy, the Obama administration isn't about to make an exception for Detroit.

Treasury Secretary Jack Lew on Sunday defended the administration’s decision not to help bail out Detroit, saying that the city would need to negotiate its own resolution with creditors.

“Detroit’s economic problems have been a long time in developing. We stand with Detroit trying to work through how it approaches these issues,” said Lew in an interview on ABC’s “This Week.”

But he added that “when it comes to the questions between Detroit and its creditors, that’s really something that Detroit is going to have to work out with its creditors.”

Lew’s comments come one week after Detroit became the largest municipality in American history to declare bankruptcy.

Labor unions have pressed the administration to intervene and provide a federal bailout to help protect the pensions of city workers and retirees. The AFL-CIO on Friday called for an “immediate infusion of federal assistance.”

I don't know why the AFL-CIO is trying to put President Obama in an impossible position.  They have to know a bailout is politically and most likely legally impossible.  So why are they screaming for President Obama to produce the impossible?

The real problem here is the Michigan GOP, Gov. Rick Snyder, and the odious Emergency Manager laws that unconstitutionally forced Detroit into bankruptcy and disenfranchised hundreds of thousands of Detroit voters.  There's your actual person to blame, folks.  Not President Obama.

Nobody's talking about that aspect of this story, and that's criminal.