The Michigan Circuit Judge who blocked Detroit’s filing for bankruptcy protection put an exclamation point on her rulings, stipulating in her judgment Friday that President Barack Obama be sent a copy of her order, saying he “bailed out Detroit” and should be involved in figuring out how public employees’ pension funds won’t be raided to pay off creditors.
Aquilina was doubtless referencing the Obama Administration’s extension of $80 billion in loans, begun under George W. Bush, to automotive companies that hemorrhaged money in 2008 and 2009.
Under the judge’s order, Republican Governor Rick Snyder and Detroit emergency manager Kevyn Orr can’t start talking with creditors about how to write off debt until the pensions of public employees can be guaranteed, as required by the Michigan State Constitution.
White House Press Secretary Jay Carney said Friday the President has no plans to become involved in a bailout of what could be the biggest American city to file for bankruptcy in U.S. history. Vice President Joe Biden, meanwhile, was telling reporters in Washington “We don’t know at this point” if the government will step in.
Senator Rand Paul’s (R-Ky.) message was a bit less muddled Friday, as he said the President would bail out Detroit “over my dead body.”