Wednesday, December 04, 2013

Oh, it couldn't happen here

A judge has ruled that Detroit's Chapter 9 bankruptcy filing can go forward.  Unions and other creditors were trying to prevent this.  They have apparently failed, although they will undoubtedly pursue appeals to higher courts.

There is no doubt that the city's finances have been severely hampered by a combination of bad decision making and an economic downturn.  It hasn't helped that the city has hemorrhaged population and businesses in recent years.  They are now $100 million delinquent in required pension contributions they have deferred since appointment of an emergency manager, but that's relatively insignificant in the big picture. 

Detroit has $18 billion in debt.  $3.5 billion of that is unfunded pension liabilities.  The workers who paid into those pension funds for decades are understandably outraged.  Can you blame them?  The city entered into a contract, morally and legally with those people.  They promised to pay them pensions for life once they became eligible.  Now the city can't pay and those retirees may well get hammered by the city and the courts.  The Michigan Constitution may claim to protect pension monies but it's still subservient to federal bankruptcy law, based on the judge's ruling in letting the bankruptcy filing go forward.

Think it can't happen in your city?  Think again. 

CityTotal Liability% Funded
Charleston, W. Va.$270 million24
Omaha, Neb.$1.43 billion43
Portland, Ore.$5.46 billion50
Chicago, Ill.24.97 billion52
Little Rock, Ark.$498 million59
Wilmington, Del.$364 million59
Boston, Mass.$2.54 billion60
Atlanta, Ga.$3.17 billion60
Manchester, N.H.$436 million60
New Orleans, La.$1.99 billion61

That's a list of the ten U.S. cities with the largest percentage of their pension liabilities underfunded.  Chicago may not be as bad off as Detroit yet, but nearly $25 billion in liabilities is enough to scare any sensible person who understands this problem.  It is a big bill that the residents of the city owe the people who worked for them and it is going to come due.  If it isn't paid, there will be huge problems.  A study by a think tank estimates that pension funds for state employees in the U.S. are underfunded by $4.1 trillion dollars.  That's more than the entire budget of the United States.

Worse, that's only half of the problem.  Cities and states have obligations to provide health insurance benefits to these retirees and there is even less money set aside to cover this upcoming bill.  There are 33 U.S. cities who have absolutely no money set aside to cover health benefits for retirees.  Los Angeles is a little better off than most, with more than 50% of the amount needed for health benefits for retirees currently funded.  Of course, the more than 40% shortfall is a hidden problem no one is paying attention to.

Detroit is merely the first of the big dominoes that are going to fall if this mess isn't fixed.

* * *

Maybe one of you can explain something to me.  The level of frustration and anger of the people of the United States with their elected leadership in Congress seems to be at an all-time high.  Yet next November, a very large percentage of the incumbents in Congress who are up for reelection (all House members, 33 Senators) will be handed another term by their constituents.

Yes, the incumbents have a lot of advantages going for them.  Ease of fundraising compared to someone who has no experience in politics at the national level.  The two-party system, gerrymandering, and the rest make it a lot easier for an incumbent to be reelected as opposed to someone seeking to oust an incumbent.

If we are all so angry and frustrated, why do we keep sending the same people back over and over again, rather than banding together and making changes?  Inertia?  Apathy?  Money is definitely a factor.  Dianne Feinstein was going to win in 2012 in any event, but the fact she received donations and spent 11 times as much as her general election opponent didn't hurt.

One other question as long as you're explaining things.  Mississippi Senator Thad Cochran will be 76 next year.  He hasn't announced his plans yet, but there is a good chance he'll be running for reelection.  Tennessee Senator Lamar Alexander turns 74 in 2014 and he is definitely running for a third term next November.  In Wyoming, Mike Enzi is going to run for another term as he turns 70 years old.  In 2009, after he lost his seat in the Senate, Alaska's Ted Stevens filed a petition to run in 2014.  Had he not died in a plane crash, he would have been 91 on Election Day.  When Dianne Feinstein ran for reelection in 2012, she was 79 and won in a landslide.

My question is, why isn't age a consideration in these races? 

* * *

Random Ponderings:

If Congress doesn't finish their work before the end of the year, milk prices might double.  Doctors could stop accepting and treating Medicare patients.  Who will the morons in D.C. blame for their screw-up this time?  Aside from each other of course.

Showing the Wheel of Fortune episode last night that was taped in October, where "The Fast and the Furious" was a puzzle was merely a case of bad timing.  However, it could have been avoided.

Those little things being airdropped over Guam with cardboard parachutes are indeed dead mice.  Their mission is to poison brown tree snakes.  I wonder if they volunteered.

Did you know that Darth Vader had an iPhone?

I wonder how much secrecy was involved in the airbrushing of Kris Jenner's thighs on this year's Kardashian family Christmas card?

How long the fans "want" Billy Joel to play Madison Square Garden on a monthly basis remains to be seen but I won't be surprised if it turns into either a very short, or very lengthy gig.

I have no sympathy for the security guards at Houston's Reliant Stadium who were fired after they asked Tom Brady to pose for photos with them.  They should have known better.

Did the Postal Service really decide to use a photo of the Statue of Liberty outside the New York New York Hotel/Casino instead of one of the original?  It's going to cost them big time.

Bad call by Delta in cancelling a flight with 50 passengers in favor of a college basketball team whose charter aircraft was down for maintenance.

Here's hoping the judge says a resounding NO to Katharine Jackson's latest attempt to win a new trial against AEG.  You had your shot, and your lawyers missed.

* * *

December 3rd in History:

915 – Pope John X crowned Berengar I of Italy as Holy Roman Emperor.
1799 – War of the Second Coalition: Battle of Wiesloch – Austrian Lieutenant Field Marshal Sztáray de Nagy-Mihaly defeats the French at Wiesloch.
1800 – War of the Second Coalition: Battle of Hohenlinden – French General Moreau decisively defeats the Austrian Archduke John near Munich. Coupled with First Consul Napoleon Bonaparte's earlier victory at Marengo, this will force the Austrians to sign an armistice and end the war.
1818 – Illinois becomes the 21st U.S. state.
1834 – The Zollverein (German Customs Union) begins the first regular census in Germany.
1854 – Battle of the Eureka Stockade: More than 20 gold miners at Ballarat, Victoria, are killed by state troopers in an uprising over mining licences.
1898 – The Duquesne Country and Athletic Club defeated an all-star collection of early football players 16-0, in what is considered to be the very first all-star game for professional American football.
1901 – In a State of the Union message, U.S. President Theodore Roosevelt asks Congress to curb the power of trusts "within reasonable limits".
1904 – The Jovian moon Himalia is discovered by Charles Dillon Perrine at California's Lick Observatory.
1910 – Modern neon lighting is first demonstrated by Georges Claude at the Paris Motor Show.
1912 – Bulgaria, Greece, Montenegro, and Serbia (the Balkan League) sign an armistice with the Ottoman Empire, temporarily halting the First Balkan War. (The armistice will expire on February 3, 1913, and hostilities will resume.)
1919 – After nearly 20 years of planning and construction, including two collapses causing 89 deaths, the Quebec Bridge opens to traffic.
1925 – World War I aftermath: The final Locarno Treaty is signed in London, establishing post-war territorial settlements.
1927 – Putting Pants on Philip, the first Laurel and Hardy film, is released.
1944 – Greek Civil War: Fighting breaks out in Athens between the ELAS and government forces supported by the British Army.
1959 – The current flag of Singapore is adopted, six months after Singapore became self-governing within the British Empire.
1960 – The musical Camelot debuts at the Majestic Theatre on Broadway. It will become associated with the Kennedy administration.
1964 – Free Speech Movement: Police arrest over 800 students at the University of California, Berkeley, following their takeover and sit-in at the administration building in protest of the UC Regents' decision to forbid protests on UC property.
1967 – At Groote Schuur Hospital in Cape Town, South Africa, a transplant team headed by Christiaan Barnard carries out the first heart transplant on a human (53-year-old Louis Washkansky).
1971 – Indo-Pakistani War of 1971: Pakistan launches a pre-emptive strike against India and a full scale war begins claiming hundreds of lives.
1973 – Pioneer program: Pioneer 10 sends back the first close-up images of Jupiter.
1976 – An assassination attempt is made on Bob Marley. He is shot twice, but will play a concert only two days later.
1979 – In Cincinnati, Ohio, 11 fans are suffocated in a crush for seats on the concourse outside Riverfront Coliseum before a Who concert.
1979 – Ayatollah Ruhollah Khomeini becomes the first Supreme Leader of Iran.
1982 – A soil sample is taken from Times Beach, Missouri, that will be found to contain 300 times the safe level of dioxin.
1984 – Bhopal Disaster: A methyl isocyanate leak from a Union Carbide pesticide plant in Bhopal, India, kills more than 3,800 people outright and injures 150,000–600,000 others (some 6,000 of whom would later die from their injuries) in one of the worst industrial disasters in history.
1989 – Cold War: In a meeting off the coast of Malta, U.S. President George H. W. Bush and Soviet leader Mikhail Gorbachev release statements indicating that the cold war between NATO and the Soviet Union may be coming to an end.
1990 – At Detroit Metropolitan Airport, Northwest Airlines Flight 1482 collides with Northwest Airlines Flight 299 on the runway, killing seven passengers and one crew member aboard flight 1482.
1992 – UN Security Council Resolution 794 is unanimously passed, approving a coalition of United Nations peacekeepers led by the United States to form UNITAF, with the task of establishing peace and ensuring that humanitarian aid is distributed in Somalia.
1992 – The Greek oil tanker Aegean Sea, carrying 80,000 tonnes of crude oil, runs aground in a storm while approaching La Coruña, Spain, and spills much of its cargo.
1992 – A test engineer for Sema Group uses a personal computer to send the world's first text message via the Vodafone network to the phone of a colleague.
1997 – In Ottawa, Canada, representatives from 121 countries sign the Ottawa Treaty prohibiting manufacture and deployment of anti-personnel landmines. The United States, People's Republic of China, and Russia do not sign the treaty, however.
1999 – NASA loses radio contact with the Mars Polar Lander moments before the spacecraft enters the Martian atmosphere.
1999 – Six firefighters are killed in the Worcester Cold Storage Warehouse fire in Worcester, Massachusetts.
2005 – XCOR Aerospace makes the first manned rocket aircraft delivery of U.S. Mail in Kern County, California.

Famous Folk Born on December 3rd:

Charles Alfred Pillsbury
Gilbert Stuart
Phoebe Hearts
Rajendra Prasad
Thomas Farrell
Mitsuo Fuchida
Irving Fine
Kim Dae-Jung
Ferlin Husky
Andy Williams
Jean Luc-Godard
Jaye P. Morgan
Bobby Allison
Don Calfa
Patricia Krenwinkel (Manson family member, longest-incarcerated female in the California prison system)
Ozzy Osbourne
Heather Menzies
Mickey Thomas
Alberto Juantorena (still runs 6 miles almost every day)
Rick Mears
Don Barnes
Franz Klammer
Steven Culp
Daryl Hannah
Julianne Moore
Terri Schiavo
Steve Harris
Katarina Witt
Brendan Fraser
Holly Marie Combs
Sean Parker (the guy who founded Napster)
Anna Chulmsky
Jenna Dewan
Brian Bonsall

Movie quotes today come from 1999's "Blast From the Past" since it is Brendan Fraser's birthday:

Eve: Where are you parked?
Adam: I came on a bus.
Eve: Why does that not surprise me.
Adam: I dunno. Why doesn't that sunrise you?
Eve: Well, I guess because I'm a little psychic. I have this thing.
Adam: Oh, that's nice.
Eve: Yeah, let me guess something. This is your first visit to La-La-Land. You're staying somewhere in Hollywood because like an idiot you thought that would be an exciting place to stay. Am I right so far?
Adam: So far?
Eve: Yes, I'm right?
Adam: Right.
Eve: I knew it. So anyhow, you get on a bus and before you know it you're stuck in the San Fernando Valley without a clue, which brings us to here. Correct again?
Adam: Again.
Eve: Where are you staying? The Holiday Inn.
Adam: Oh. Yes! Yes! The Holiday Inn. That's exactly right.
Eve: See, I'm psychic. I mean not completely but pretty much. Pretty good, huh?
Adam: No, that was amazing!
Eve: Yeah I know. Thanks.

#2

[the doors have unlocked]
Calvin: It's still not safe to go up. We're going to have to wait twenty-four hours.
Helen: Oh, shit!
[Helen, realizing Adam has heard her, immediately covers her mouth]
Calvin: Excuse your mother's french son.
Adam: "Shit" is french?
Calvin: Yeah, it's a way of celebrating good news.
Adam: Well then. Shit.

#3

Adam, Age 11: What's baseball?
Calvin: It's a game, son. I can explain it pretty easily. See, there's a pitcher...
Adam, Age 11: Oh, like a painting.
Calvin: No, a pitch-er.
Adam, Age 11: Like one of mom's?
Calvin: No. There's a man who throws the ball to a man who has a bat.
Adam, Age 11: Oh! The nocturnal flying mammal?

#4

Eve: Here ya go, one champagne cocktail.
Adam: Oh, thank you.
Eve: I thought only hookers drank those things?
Adam: Well, I know Mom sure likes 'em.

#5

Troy: [pointing to Sophie's sizeable breast implants] So, Sophie, when you fly to Paris, do you check these or are they carry-on?

Love this particular scene from that movie:  http://www.youtube.com/watch?v=nXi7mCd7JAQ