9:12 am Wed September 11, 2013  How Detroit is impacting the
rest of the state’s finances  Lessenberry commentary for 9/11/13
A few days ago, Michigan Radio’s Sarah Cwiek reported a story
worth thinking about. The market for municipal bonds has
nosedived since Detroit announced its intention to file for
bankruptcy in July.  Now, if you would like a clear and concise
explanation of how the bond market works … good luck with that.
But essentially, communities sell bonds to raise money, bonds
they pay off gradually with interest over time. They are a
traditional and time-honored way of raising money for civic
improvements.  There’s also been an understanding, at least
since the Great Depression, that money owed to bond holders --
especially the holders of general obligation bonds -- was
sacrosanct. No matter how hard things were, the bond holders had
to be paid. Well, that’s not happening in Detroit, which, as all
the world knows, has filed for bankruptcy.  Emergency Manager
Kevyn Orr isn’t honoring Detroit’s g