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A comment on Puerto Rico files for biggest ever U.S. local government bankruptcy. Parent comment

Re:Puerto Rico files for biggest ever U.S. local government ... by vkou on Wednesday May 03, 2017 @07:40PM (#14261230)
> When these mismanaged governments finally throw in the towel and hand the reins over to grownups what happens is the pensions and retiree benefits get cut.

What makes it appropriate to cut obligations to creditors we call pensioners, but inappropriate to cut obligations to creditors we call 'bondholders'?

(The answer is, obviously, that our politicians are quite happy to push our elderly under the bus, in order to protect wealthy investors.)

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Re:Puerto Rico files for biggest ever U.S. local government ... by cnnsucks on Thursday May 04, 2017 @10:31AM (#14265079)
"but inappropriate to cut obligations to creditors we call 'bondholders'?"

The part where I said bondholders should be held harmless is a fiction inside your head. When the gears finally strip the bondholders in these cases (Detroit, GM, etc.) take epic baths, and I don't shed any tears for them either. $7 billion in bondholders’ obligations in Detroit were erased, for example.

So I suppose there is little difference between supposed "creditors we call pensioners" and actual creditors; everyone gets wrecked.

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Re:Puerto Rico files for biggest ever U.S. local government ... by BenoitEssiambre on Wednesday May 03, 2017 @09:03PM (#14261628)
These are usually the same people. Pension funds hold bonds.
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