Disaster Capitalism Strikes as Hedge Funds Circle Near-Bankrupt Municipalities Like Vultures
https://www.commondreams.org/headline/2013/05/08-0
In Detroit, where a previous ploy of the disaster capitalists has already taken hold in the form of an appointed "Financial Emergency Manager"—a position that strips out local government and puts city decision-making into unelected, bureaucratic hands—the people have almost no political avenue to resist the sale of public assets or the manipulation of city debt.
And as Hals notes, "the hedge funds' interest in municipal debt reflects the divergent fortunes of Wall Street and Main Street." He continues:
Distressed debt funds love to jump in when most bail out. But with the coffers of U.S. companies overflowing with cash, there has been a dearth of the debt defaults, bankruptcies and liquidations that such funds normally feast on.
By contrast, a small but potentially growing number of U.S. cities and towns are struggling with pay and pension obligations that they took on in the boom years. As well as Jefferson County, the California towns of Stockton and San Bernardino have recently filed for bankruptcy.
(More at the link. Note that Michigan's governor is a stealth "tea party / Koch politician.)