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Comment: One piece of nonsense in here: According to political science prof, Dick Simpson, “If they were to, say, pay only 20 cents on the dollar, and the bondholders were cheated out of 80 percent of their investment, the school system would not be able to issue bonds again.” Baloney. Bankruptcy cleans up the balance sheet, which lenders love. That’s why Detroit has an investment grade credit rating and Chicago is junk.

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bob oriole park

As the Moody’s headline says (on one of their paid reports I’m too cheap to buy) “Detroit’s Economic and Fiscal Health Are Stronger a Year after Bankruptcy”