The court "will not participate or perpetuate hasty and imprudent financial decision-making," federal bankruptcy judge Steven Rhodes said last week in his decision to strike Detroit emergency manager Kevyn Orr's proposed swaps settlement. The financing deal can be redone, but the judge should also keep his words in mind as the state and private foundations attempt a deus ex machina to save the public pension status quo.

Detroit's bankruptcy has turned into a brawl, prolonging the pain and impairing Mr. Orr's plans...