The Market Ticker
Commentary on The Capital Markets- Category [States]

Our daily exhibit on why these thugs need to all be indicted, prosecuted and imprisoned -- each and every one of the union leaders and their members.

Among the many ideas the Chicago Teachers Union have come up with over the years to save big money or generate gobs of new revenue for our cash-strapped city, a favorite involves what they like to call “toxic” interest-rate swaps deals.

These are the same unions that advocated for these deals (and got them) years ago as a means to cut back their pension fund contributions.

In other words they used these swaps to lower their interest payments at the time, thus giving them more money to spend on other things.  Then the rate environment went against them and suddenly the deal isn't so good now and into the future.

So having gotten the benefit (exactly as they contracted for), knowing the risk (exactly as they contracted for) and having negotiated the deal knowing all these facts and having benefited from same they now want to turn around and sue because the benefit came with the exact risk that was disclosed exactly as it was expected that it might.

This sort of threat is outrageous.  It would be one thing if CPS could reasonably claim they were misled, or unsophisticated.  In many other cases (e.g. Jefferson County and similar) they were misled and in some cases there was even outright bribery involved.

But that's not true here.

In this case the union and city both knew damn well what they were doing, they got the benefits promised from the arrangements and now, having done so, they want to make someone else eat the cost of those benefits.

Uh, no.

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C'mon guys, cut the ****:

The judge overseeing Detroit's bankruptcy refused Monday to stop the city from shutting off water if people can't pay their bill, saying there's no right to water and the law doesn't give him the power to keep the taps open anyway.

Judge Steven Rhodes gave critics of the shutoffs a two-day hearing last week. He said their arguments were "interesting and creative" but couldn't trump the legal standard under bankruptcy law or constitutional law — or the potential harm to Detroit's perilous finances.

He's right.

Never mind that there is plenty of water within walking distance of most residents of Detroit.

There is a very large river that runs right next to it, remember?

Oh, you want that water filtered, chlorinated and pumped to you, and then you want your dirty water (particularly the water you took a crap into) handled and properly sanitized?

That all costs money.

What gives you the idea that it's "free"?  It's never free; someone has to pay.  That someone should be you.

I know, it's "expensive."  Well, not really.  Not any more than it is most other places with city water systems.  And let's face it, city water systems are pretty good on-balance.  You may think a well and septic are cheaper, and for a while they may be -- right up until your drain field clogs or there's some problem with the water coming out of the well, or your pump simply breaks.

Then you get a big bill, right now, and if you can't pay it.... no water.

This isn't the same situation as Jefferson County in Alabama where banks conspired, complete with actual bribery, to rip everyone else.  No, this is a city that has a working water system and a plentiful fresh source.  It just needs to be filtered, chlorinated and pumped, then the sewage dealt with. 

Just like everywhere else.

The people who are getting cut off aren't getting cut off for being a couple of months behind.  These are people who haven't paid bills in ten years in some cases; we're talking bills of thousands of dollars.

And by the way, the sewer bill is roughly double the water amount in Detroit and elsewhere.  That's because it's more complicated and expensive to filter and sanitize your **** than it is to pump you the water in the first place.

Those who want to claim that Detroit's water charges are "outrageous" are lying.  They are not much different than mine are here in NW Florida and in fact are quite reasonable.  If you're interested in a comparison look at Atlanta, which you can find online here -- the average family in Atlanta, according to the city, uses 8 ccf a month.   Of course I could have a much cheaper water bill (zero!) if I was to move out of the incorporated area, dug a well and septic, and did it myself.  But then I'd be on the hook for the entire cost of both, plus their maintenance and repair -- so while that "looks" cheaper it may not be, especially over time.

If you're enough of a deadbeat to let your water bill go for months, even years, you should have been cut off a very long time ago. Around here you'll get about three weeks past the due date, then you're going to wake up and find that the shower doesn't work and the toilet doesn't flush.

That's how it should have been then and how it should be now.  Quit buying lottery tickets, smokes and booze and pay the damned water bill instead.  You know damn well these people are getting welfare, Section 8 housing and food stamps never mind their cars and fancy cellphones. 

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