Detroit's bankruptcy is probably going to affect its pensioners in a negative way and that is a very bad and unfair thing. To understand why this coming to pass you need to understand a couple of things: The first concept is called preeminence. It is a legal concept that says when two laws contradict each other; the law from the superior governing body is given precedence. Even though the Michigan Constitution has wording that would seem to protect pensions the Federal Bankruptcy code takes precedence. That brings us to the second concept. In the attached article former law professor, Elizabeth Warren, explains the US Congress rewrote the federal bankruptcy code in 1978 and that change put pension holders at the back of the creditor line in a US bankruptcy. Apparently this was opposite what most other countries in the world do. It would seem that banks and big business had Congress in their pockets, so to speak.
Recently we have seen Congress throw our Fourth Amendment rights under the bus with the NSA spying, disregard our Tenth Amendment Rights with "Obama-care" , attempt to further impede our Second Amendment Rights and execute outright tyranny against the Tea Party by turning loose the IRS on 503 C applications from groups thought to be right of center, politically.
Now that the Congress approval has never been lower, we might wake up and throw them out of office! (Or at least the ones that refuse to comply with Our Constitution)