I noted last week that the intersection of Michigan law and the Bankruptcy Code provided some interesting questions about the scope of the Supremacy Clause, the Tenth Amendment, and federalism generally. On a more lighthearted note, the Wall Street Journal reported today that the bonds issued for construction of the Great Platte River Road Archway Monument (which featured briefly in Jack Nicholson's About Schmidt) would get $50,000 on a $20 million tab. That's .0025%. But it's worse than that: The initial issue was for $60 million, which was voluntarily written down by the bondholders to $20 million in 2002. Talk about haircuts!
But on a positive note, "'Not many bonds were sold locally,' Joel Johnson, the foundation board’s chairman, told Bankruptcy Beat."
Detroit bondholders beware: Matters could be worse. Much worse.