that he can transfer money that will be less visible. look, this is an issue that detroit is going to have to settle. it owes $18 billion, which it cannot pay. michael barone was once asked why he went from being a liberal to a conservative. and he had a one word answer, detroit. he grew up in detroit. 50 years of liberal governors, utterly ruined it. in addition to outright theft and fraud. and this is the legacy. the unions are going to try to put a monkey wrench in this to try to slow it down and launch appeals oon this, but, in the end, it s not going to work. unfortunately, the pensioners are going to be hurt as will all the other creditors and detroit is going to have a second chance. otherwise it, has no chance whatsoever. i agree with that bankruptcy is the managed way to handle debts that you can t pay. that s kind of what myth romney was saying when he said that the auto companies
we don t know what they are for. i don t think anybody could tell you what the republican health care plan is. and they ll i have to. they ll have to eventually. obama care refutes itself even in the absence of a republican plan. the city of detroit gets its bankruptcy ruling. now many city workers think they re not happy with it. that s next.
effect the didn t have to. we think that s bad for detroit and we think that sets a bad precedent for other cities. reporter: the emergency manager says this is a new beginning, a chance to work with city employees and move forward. representatives of the pensioners say this is the start of the fight. the fight isn t over here. the mere fact that the city is eligible certainly does not indicate that the pensions board or the retirees are going to allow any diminishment or impairment that is presented by the estimate perhaps the fight has now just begun. reporter: the cuts and changes are not immediate. action really starts when the emergency manager, kevin orr, presents what is called the plan for adjustment that. gets the ball rolling. it s expected before the end of the year. brett? mike tobin live in detroit tonight. mike, thanks. more on this with the panel. a second straight down day on wall street. the dow lost 94. s & p fell 6. the nasdaq was off 8. up next, what could
makes it unstable. within that system you have the rise of a uber presidency. there could be no greater danger for individual liberty. he said in hithe founders wo unhappy and surprised by what s happening now. but democrats on the committee said hey, presidents from both parties have done this and as long as we have gridlock on capitol hill president obama is likely to continue doing it. okay, shannon, thank you. an economic life preserver for a city would be a financial disaster for many people who gave much of their lives to that city. correspondent mike tobin reports tonight on the granting of bankruptcy protection for detroit. reporter: the rule, is unwelcome to detroit city employees as their pension now hangs in the balance as detroit digs itself out from $18 billion in debt. this is a moral issue that we re dealing with. it is wrong for you to take somebody s pension that have given their lives, that have sacrificed 30 years. reporter: the trouble began with the exo
is paying off in a big way. well, that was a few weeks before election day 2012. and today the ruling came down that detroit is eligible for chapter 9 bankruptcy. this was today in the white house briefing room. i thought in the campaign he said it would be horrible for detroit to go bankrupt. well, i think there was enormous hardship caused by some of the problems that have happened in detroit which is why this needs to be resolved between the city and its creditors. our position on this is the same as it was prior to the judge s ruling and prior or in the immediate aftermath of the declaration of bankruptcy. charles? i don t necessarily defend the president but clearly what he meant by detroit was a shorthand for the auto industry. he was not referring to detroit the city. i think there is no way in which he is going to engineer a bailout of detroit. at least anyone that can be seen. perhaps there can be ways