Wednesday, June 11, 2014


More contributions flowing in to the grand bargain today.  And with them, a possible answer, from Mark Stryker of the Detroit Free Press, to my question yesterday -- why bother with the grand bargain at all?  Why not just tell the creditors to pound sand?

"[T]he rush of corporate and foundation gifts this week reinforces the clever structure and broad appeal of the grand bargain .... By linking support for the DIA to concern for pensioners, the deal makes it possible for a diverse set of third parties to contribute to the city’s recovery in ways that are palatable. Foundations whose missions typically preclude bailing out municipal debt can justify supporting the DIA. Meanwhile, politicians in Lansing who might be squeamish about supporting the arts know that all of the money contributed to the grand bargain will go to pensioners" (my emphasis).

It is very clever, though, as I pointed out yesterday, there is a potential downside.