President Barack Obama is using $100 million in taxpayer cash to help keep Detroit’s pension funds afloat, contradicting his administration’s commitment to avoid a bailout.
The federal $100 million is being described as “blight remediation,” but it allows the city’s new managers to reshuffle more cash into the city employees’ pension funds, which were looted by city and union officials for several decades.
The stealth bailout was exposed by the Detroit Free Press, which said the $100 million would be taken from the so-called “Hardest Hit Fund.” That fund was created by the administration in 2010 to counter the disastrous implosion of the federally-inflated real estate bubble.
White House officials have consistently tried to downplay public concerns that he would bailout the city.
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Posted Thursday, April 17th 2014 @ 9am