Legislature Lacks Economic, Moral High Ground in Detroit Bailout

Legislature Lacks Economic, Moral High Ground in Detroit Bailout [Michigan Capitol Confidential]:
"As I noted in a previous blog post, Detroit Emergency Manager Kevyn Orr has suggested that Detroit's lenders in effect deserve to lose their shirts because they should have known the city was "openly and notoriously" driving itself into bankruptcy.

Gov. Rick Snyder took a similar shot at lenders last year on the national "Face the Nation" TV program:

And realistically if you step back, if you were lending to the city of Detroit in the last few years, didn't you understand there were major issues and problems? And look at the yields they were paying compared to other bonds. They were getting a premium.

Neither man seems to recognize that the same criticism could be leveled against city and state officials, who for years knew or should have known that Detroit was rushing toward a fiscal cliff.
Not only did they ignore countless warnings, but state officials actively played enabler to Motown's fiscal malpractice.
Specifically, the borrowing Gov. Snyder criticized would not have occurred if not for a 2010 vote by the Legislature to grant Detroit special permission to go $250 million deeper in debt just to pay its routine day-to-day operating expenses. 
Many of the politicians who approved that "second-mortgage-to-pay-the-light-bill" debt are still in office today — debating a Detroit bailout to fix a problem they helped create!"