August 29, 2013
The Detroit bankruptcy is likely to mean a big hit for people’s pensions. Think about that: people have worked all their lives and now you tell them the terms just changed, and at precisely the part of their lives when they will find it hard to replace the lost income.
There are two issues involved in the bankruptcy. One is the outrageous fact that wages and pensions are not treated as secured so they take second place to banks and others whose only skin in the game is money, not the sweat of their brows over lifetimes of work. That’s the legal rule but I’ve never liked it. It creates maximum hardship. Cities and companies go bankrupt for the very reason that they can dishonor their pension obligations. Federal laws require companies to do some things to protect us. But if they don’t do well enough, well, there’s always bankruptcy. That, in my view, is a travesty. Read the rest of this entry »
September 11, 2012
In most political campaigns, I don’t know any of the contestants personally. I vote based on what I can glean about them. But I do happen to know some of the candidates this time. So let me comment about a couple of people I know about two races in the area reached by this station.
First, a word on the race for the U.S. Senate from Massachusetts. I met Elizabeth Warren years ago when she came to speak at Albany Law School about proposals to change the bankruptcy laws. At the time, she was on the faculty at the University of Pennsylvania, before she moved to Harvard. Her talk was stunning. What she showed us in the clearest black and white numbers was the way that the proposed changes to the bankruptcy laws were targeting women who had suddenly lost everything because of divorce or illness. Not the “deadbeats” of popular imagination and the proponents’ rhetoric, but people who were working around the clock to take care of themselves and their families. Read the rest of this entry »