. >> the pensio benefits were cut by 40% lt year.the average workern the city of detroit, nonuniform worker, their nefit will be $18,000 per year. this is not this grand situation. in obligation of aut 4% of total revenues. i think it is fair to say the pension issue has been blown out of proportion. dennis: there is a huge liability across the country from the government pension plans which have never slipped over to putting in your own stuff and invested. kate, we talk about a lot of numbers and the law, you're talking but most of thickly directed. tell us about what you're you ae hearing from these people. >> a breast caer survivor paid into this plan foover 30 years,etired at age 63 and is terrified, no idea if she will be able to collect. and then i spoke to another worker, the quintessential union guy who takes people antiunion off. he worked as an electrician come a retired at 50, got second job in a different iisibility and retired retired after 10 years and got a tenure pension from them. he is collecting to pensions. dennis

not just in califora, but with detroit aneven bigger cities like los angeles that have a looming pensio problem. not that we don't el for them who have been promed in the past, if t money is not there, somebody will have to renegotiate. that is what banuptcy allows them to do. if it's a hacut so somebody can get the same kind of penalty in the end we would have a much more successful outcome. gerri: i don't know. this is going to be a big fight. a dge todaso this bigoted filing is unconstitutional. yolook back, gm was in bankruptcy for s weeks, how long is this thing gng to last r the ci of detroit? >> this is a complety different kettle of fish. chapter 11 for corporations, it is a different thing. the other poini want to make is 18 or $20 billion of debt outstanding liabilities outstaing. a huge amount of money and to your point about it being a low tax base, that is true. only 13,000 per year. you do the math, 17 billion is a huge number. gerri: cities go up and cities go down thk you for coming on tonight. onto our other big story tonight, the sec has slapped llionairhedge fund mana

to see, maybe bankruptcy is the answer, but this may mean stiffing to the people who were promised pensioey may get $0.20 on the dollar >> i know. the golden age is over. we really just run it. or in a new era now. who even knows what money is worth. a promise, contract. pensioners might take a very bad it. it's what was left us, neglect, sloth, and ripping people off the people didn't take it. who took it? >> detro was perpetually on fire. >> we have 7,000 carsons per year. do the math. thirty days. we have a fire department where the alarm still working inside. holes in the booths. the engines we quarter. sometimes the engine show up and can pump water. that's not the fault -- go ahead john: they took out the fire polls and sold the brass. >> scrap them. they did. gone. everything now is a personnel. john: the city did manage to build a new $60 million building to hse fire department officials. you tried to confront the deputy fire commissioner about that. he was not eager to talk. >> deputy commissioner. >> and not sure if he was talking to me or you. >> you're in charge of the mainten

the state cut the revenue sharing last year by approximately the same amount as in taylor pensio imacenterra p. dennis: we're going to have to wrap. i was live got another more, but we look for the rattle rousing on the other side. my apologies, thank you for being with us. now we want to know what you guys think. should workers in bankrupt cities lose their pensions? log onto gerriwillis.com, vote on the right-hand side of the screen and i will share the results at the end of the show. a lot still to come this hour in putting tips on the best way to rent your vacation home. and taco bell shocking the fast food world by saying adios to kids meals. at dry cleaner, we replaced people with a mhine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your mey needs an ally. ♪ ♪ ♪ [ male announcer ] if y can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, o