http://www.foxbusiness.com/news/2012/06/12/detroit-postpones-56-million-water-and-sewer-bond-deal/
A judge in Lansing cleared away part of the uncertainty about Detroit – the City Attorney had filed a suit against the state rescue plan on her own, without the formal approval of the City Council and the Mayor. She claims the State owes money to the city from past “Revenue Sharing” money the State withheld. The judge ruled she has no standing as an individual and threw her lawsuit out.
http://www.crainsdetroit.com/article/20120612/FREE/120619980
The above news story is another “back door” contingency plan. Because of the way Detroit and the suburbs grew, the water and sewer system is regional, but was owned by the City of Detroit – a long simmering area of dispute between the “Suburbanites” and the corrupt City of Detroit. Because the water and sewer system has the ability effectively to “tax” the suburbs, they were going try to float a $596 bond issue.
This sale of over half in $billion in bonds is not to build anything. It is to pay off prior bad financial arrangements, knowing that the suburbs don’t have an option to “cut the cord” and disconnect from Detroit’s water and sewer system.
In the first sentence, the name Goldman Sachs appears. I’m shocked, I tell you.