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Detroit to go bankrupt in less than a month
RT ^ | 22 November, 2012

Posted on 11/21/2012 7:20:31 PM PST by Founding Father

The city of Detroit, facing a serious cash crisis, is set to go bankrupt by the end of this year and would put city workers on furlough unless it strikes a deal with the city council that would bring in $30 million before Dec. 14.

Detroit has been in financial turmoil for years, losing a quarter of its population in the past decade and facing a shrinking auto industry that has reduced tax revenues. The Detroit City Council gave the mayor the option to hire a financial advisor and in return receive $30 million by the end of the year.

But the Council on Tuesday voted 8-1 to delay the decision on the deal, which would pay the Miller Canfield Law Firm $300,000 to advise Mayor Dave Bing. The deal would have released $10 million in bond money on Tuesday and another $20 million in December.

The Council decided not to authorize the contract due to suspicions that Miller Canfield has conflicts of interests, since the firm handles other city business. The Council was also concerned that the firm’s contract may not be legal, since it was not prepared or approved of by the city’s chief on-staff lawyer. Council members were also upset that Bing only presented them with one law firm, denying them options to choose from.

"The Council’s rejection of the Miller Canfield contract means the city will not receive the first $10 million scheduled for release today,” Bing said in a statement. “As a result, it will be more difficult for the city to maintain its liquidity until the receipt of property tax revenues beginning in January. Today’s vote is one more example of how City Council has stalled our efforts to bring financial stability to the city of Detroit."

Some blame the mayor for the denied funds, claiming that his limited options gave the Council no choice but to reject the proposal.

“Why is Mayor Bing putting gthe city’s finances at risk by marrying himself to one law firm?” City Council President Charles Pugh told reporters.

If a deal cannot be struck within the upcoming weeks, then those who will suffer most are Detroit’s government employees. Bing plans to put city workers on furlough on Jan. 1 to save cash if fails to receive the much-needed money from the law contract. With a $30 million cash shortfall, the city would temporarily lay off thousands of workers to avoid bankruptcy. The only city workers who would be able to keep working are police officers, firefighters, EMS workers, or employees of departments that raise revenue for the city.

The City Council also rejected a proposed contract to overhaul the Detroit Water and Sewerage Department, proposing to cut 81 percent of its workforce in an attempt to save cash.

“If we don’t stop this, there will be nothing left of the city of Detroit,” Michael Mulholland, secretary treasurer of the American Federation of State, Council and Municipal Employees Local 207, told the Detroit Free Press. With a city that has already lost much of its population due to declining jobs, cutting the workforce with furloughs and layoffs is only worsening the crisis. At the current rate, Detroit is set to hit a weekly cash flow of $4.1 million in mid-December and drop to negative $4.8 million at the end of the year.


TOPICS: Business/Economy; Culture/Society; US: Michigan
KEYWORDS: bankrupt; detroit
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Coming to a city near you.
1 posted on 11/21/2012 7:20:40 PM PST by Founding Father
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To: Founding Father

Check the Detroit Public Library for the missing cash.


2 posted on 11/21/2012 7:22:43 PM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: Founding Father

The commie lib ‘RATS did a great job with Detroit. I wonder how soon it’s going to be before the rest of America goes in the sewer.


3 posted on 11/21/2012 7:23:31 PM PST by FlingWingFlyer (Amnesty - Obama's bailout of Mexico. Barry sticks it to America again!)
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To: Founding Father

oh well


4 posted on 11/21/2012 7:24:46 PM PST by Doogle ((USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: FlingWingFlyer

You’d think someone in the media would notice the correlation, wouldn’tcha?


5 posted on 11/21/2012 7:24:55 PM PST by Baynative
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To: Founding Father

OK, what do you guys want to sell off. Send me a list and I’ll get back to you.


6 posted on 11/21/2012 7:26:02 PM PST by Right Wing Assault (Dick Obama is more inexperienced now than he was before he was elected.)
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To: Founding Father
Prior to the election, "Rolling Stone" magazine ran an article on what America would be like if Romney were elected, and drastic cuts in government funding were rammed through by nasty Republicans. The article opened with the this (I paraphrase): "Want to know what America would look like under President Romney? You can go to Detroit now and see what it would look like."

Yeah. Detroit. It's the Republicans' fault.

7 posted on 11/21/2012 7:26:48 PM PST by ClearCase_guy (Global Warming is a religion, and I don't want to be taxed to pay for a faith that is not mine.)
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To: Springman; cyclotic; netmilsmom; RatsDawg; PGalt; FreedomHammer; queenkathy; madison10; ...
An emergency manager might have saved them. Oops.

Personally I suspect the governor is the one who called in the FBI who are now investigating the Detroit PD and raiding libraries.

Image Hosted by ImageShack.us
8 posted on 11/21/2012 7:27:33 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Founding Father

I thought it was bankrupt for years.


9 posted on 11/21/2012 7:27:39 PM PST by o-n-money
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To: Baynative

The “media” is next. The state controlled “media” is having a hard time staying afloat now. Wait until ObamaCare kicks in. LOL!


10 posted on 11/21/2012 7:28:37 PM PST by FlingWingFlyer (Amnesty - Obama's bailout of Mexico. Barry sticks it to America again!)
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To: Founding Father
OK .. a city has no money, so it's going to strike a deal with itself ...

Got it.

11 posted on 11/21/2012 7:29:59 PM PST by knarf (I say things that are true ... I have no proof ... but they're true)
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To: Founding Father

Gee, that’s a darn shame.


12 posted on 11/21/2012 7:31:06 PM PST by dinodino
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To: FlingWingFlyer

Actually I think much of America is a lot further down that sewer than we realize. Detroit hasn’t been propped up they way many American cities have been. Money has gone to Detroit but there’s been no pretense of doing anything for the city. The money has gone into a few pockets.

Cut the gravy train to Chicago and she’s gonna burn.


13 posted on 11/21/2012 7:32:48 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Founding Father

“If we don’t stop this, there will be nothing left of the city of Detroit,” Michael Mulholland, secretary treasurer of the American Federation of State, Council and Municipal Employees Local 207, told the Detroit Free Press.

Michael, enough of this financial stuff! Did you the watch Jerry Springer Show? Opera?


14 posted on 11/21/2012 7:34:03 PM PST by Mark (For the first time in my life, I'm no longer proud of my country.)
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To: Founding Father

Wow - it sucks to be them.

Now go pay your taxes, Detroit is going to need a bailout. :)


15 posted on 11/21/2012 7:34:42 PM PST by Tzimisce (What do you do when every every branch of the government is corrupt and aligned against you?)
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To: FlingWingFlyer

“The commie lib ‘RATS did a great job with Detroit. I wonder how soon it’s going to be before the rest of America goes in the sewer.”

Detroit has had “black leadership” since 1974. Coleman Young was the principal architect of the fall of Detroit. He was mayor for some twenty years! Now they have a former NBA basketball player as mayor. They’ve all pandered to the “Free Sh!t Folks,” and you can see where it has gotten them.


16 posted on 11/21/2012 7:40:12 PM PST by vette6387
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To: Mark

AFSCME ranks right up there with the SEIU in my book.

I wonder how they feel knowing that even the private sector unions voted against their attempted prop 2 power grab? LOL


17 posted on 11/21/2012 7:40:31 PM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: o-n-money
I thought it was too. I checked the date of the article because I swear I read the same story about the mayor bringing in cronies, the city lawyer being left out, and the council balking... Everything reminds me of the movie Groundhog Day. I'm sure if I drive my SUV into a gravel pit tonight, I'll wake up to “I Got You Babe” tomorrow morning.
18 posted on 11/21/2012 7:40:31 PM PST by uncommonsense (Conservatives believe what they see; Liberals see what they believe.)
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To: Founding Father

+Detroit to go bankrupt in less than a month>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

I thought it was liquidated already a couple decades ago. It certainly looks like that.


19 posted on 11/21/2012 7:40:31 PM PST by cunning_fish
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To: Founding Father

Couldn’t be. Obama saved Detroit.


20 posted on 11/21/2012 7:43:33 PM PST by SandyInSeattle (2 Corinthians 4:8)
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To: Founding Father

It wasn’t already?


21 posted on 11/21/2012 7:45:34 PM PST by Nik Naym (It's not my fault... I have compulsive smartass disorder.)
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To: ClearCase_guy
"Yeah. Detroit. It's the Republicans' fault."

They fled the city. Who is John Galt?

22 posted on 11/21/2012 7:47:02 PM PST by uncommonsense (Conservatives believe what they see; Liberals see what they believe.)
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To: Nik Naym

Happy news for the Union’s...... A tribute to their contribution to the success of cities all across America.


23 posted on 11/21/2012 7:47:59 PM PST by rovenstinez
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To: Founding Father

I’ve visited Detroit as well as Third World cities in Africa,Asia and South America.I can tell Detroit from the others only because some of the signs there are in English.


24 posted on 11/21/2012 7:51:27 PM PST by Gay State Conservative (Benghazi: What Did Baraq Know And When Did He Know It?)
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To: Founding Father

Obamanation Communism File.


25 posted on 11/21/2012 7:52:56 PM PST by Graewoulf ((Traitor John Roberts' Obama"care" violates Sherman Anti-Trust Law, AND the U.S. Constitution.))
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To: Founding Father
The outcome of the implementation of policies of the liberal faith have proven to fail every. single. time.
Finally, French millenials are seeing the errors of those policies.

Hopefully America and Britain and the rest of civilization won't wait too long but I'm not convinced.
26 posted on 11/21/2012 7:54:00 PM PST by rocksandbroncs
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To: Founding Father

We’ve all heard this Broken Record for years now..............LET’s SEE some ACTION ON This!


27 posted on 11/21/2012 7:54:40 PM PST by EnglishOnly (Fight all out to win OR get out now.)
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To: Founding Father
No problimo.....Obama money will be coming....from his "Stash".....

Let the parasitic inner-city tribes starve in ALL the cesspools run by Democrats.

28 posted on 11/21/2012 7:54:50 PM PST by traditional1 (Don't gotsta worry 'bout no mo'gage, don't gotsta worry 'bout no gas; Obama gonna take care o' me!)
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To: Founding Father

My only question:

WHAT TOOK SO LONG?


29 posted on 11/21/2012 7:58:09 PM PST by Cringing Negativism Network
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To: Founding Father
receive $30 million by the end of the year.

Let this guy write the check ---> Detroiters Elect Ex-Con Brian Banks As State Rep

30 posted on 11/21/2012 8:04:00 PM PST by Libloather (The epitome of civility.)
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To: Founding Father

Comparing Detroit to Hiroshima, then and now.

http://www.freerepublic.com/focus/chat/2349112/posts


31 posted on 11/21/2012 8:05:00 PM PST by Westbrook (Children do not divide your love, they multiply it.)
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To: Founding Father

It’s like a robber putting the gun to his own head and threatening to shoot if you don’t give him all your money. From their perspective, it’s worked before, so why not?

Sounds as if city council members are upset that they’re not getting their cut of the fee to me. Might not be “legal” because staff legal counsel didn’t draw up the contract, lol?

They’re fighting about something over which they honestly have no control. All they’ve got on their side is guilt and fear of rioting, but the wheels just fell off the guilt wagon so the threat starts to look like what it’s been all along, blackmail.


32 posted on 11/21/2012 8:06:46 PM PST by RegulatorCountry
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To: FlingWingFlyer
The “media” is next. The state controlled “media” is having a hard time staying afloat now. Wait until ObamaCare kicks in. LOL!

Yes, it's always been a mystery to me that the media remains liberal despite their certain knowledge that liberalism breeds problems with attaining and maintaining economic prosperity. And they must know that a declining economy will affect their sales of newspapers, cable TV fees, and advertising income. Yet they continue to support liberals in politics. Go figure. Makes no sense to me.

33 posted on 11/21/2012 8:09:47 PM PST by OldPossum
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To: Founding Father

Ok. What are the effects of bankruptcy?

No schools, no garbage collection, no police protection, no fire protection?

So basically, nothing changes.


34 posted on 11/21/2012 8:10:40 PM PST by CriticalJ (Suppose you were an idiot. And suppose you were a member of Congress.. But then I repeat myself. MT)
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To: CriticalJ

They’d have to open their books, can’t have that.


35 posted on 11/21/2012 8:17:09 PM PST by RegulatorCountry
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To: Founding Father

The great symbiotic relationship between the unions and city government has proven to be a failure.


36 posted on 11/21/2012 8:19:21 PM PST by jonrick46 (The opium of other people's money.)
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To: Founding Father

Too Big to Fail!


37 posted on 11/21/2012 8:20:44 PM PST by EnglishOnly (Fight all out to win OR get out now.)
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To: ClearCase_guy
here is what Detroit looks like after deacdes of democrat/socialist/union control. It's a third world hell hole if ever there was one. Go ahead and get lost in that neighborhood. Hopefully your affairs are in order.
38 posted on 11/21/2012 8:24:26 PM PST by RC one (Akin/Mourdock-2016)
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To: cripplecreek
Good I will bring the marshmellows just make sure RE and O are invited.
39 posted on 11/21/2012 8:24:29 PM PST by funfan
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To: o-n-money
I thought it was bankrupt for years.

Well, "morally" bankrupt anyhow.

40 posted on 11/21/2012 8:26:31 PM PST by The Duke
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To: ClearCase_guy
"Want to know what America would look like under President Romney? You can go to Detroit now and see what it would look like."

Crystalline idiocy. Detroit has had Democratic mayors since 1962.

http://en.wikipedia.org/wiki/List_of_mayors_of_Detroit

41 posted on 11/21/2012 8:29:32 PM PST by TChad
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To: Westbrook
Comparing Detroit to Hiroshima, then and now.

That would make an excellent one-liner talking point when confronting our domestic enemies. "Liberal economic policies have destroyed more cities than nuclear weapons."
42 posted on 11/21/2012 8:53:37 PM PST by SpaceBar
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To: Founding Father

Please just let it die.


43 posted on 11/21/2012 9:01:47 PM PST by Vince Ferrer
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To: Founding Father

Please just let it die.


44 posted on 11/21/2012 9:02:26 PM PST by Vince Ferrer
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To: Founding Father

Detriot is a picture postcard of what happens when RATS are allowed free reign.

Coming next: California.


45 posted on 11/21/2012 9:13:26 PM PST by upchuck (America's at an awkward stage. Too late to work within the system, too early to shoot the bastards.)
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To: Founding Father

Dave Bing represents the only semblance of sanity in this God forsaken city. Charles Pugh, former newscaster, is a complete buffoon as are the rest of the Council Members. The best thing that could happen here is that they go broke and renegotiate all the city contracts and get people who actually want to work.


46 posted on 11/21/2012 9:14:40 PM PST by kempster
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To: Founding Father
then those who will suffer most are Detroit’s government employees.

Schadenfreude

(That's Austrian for "self sticking it to the man")

47 posted on 11/21/2012 9:16:28 PM PST by spokeshave (The only people better off today than 4 years ago are the Prisoners at Guantanamo.)
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To: ClearCase_guy

You’ve got to be kidding me? They actually had the audacity to write that?

Detroit has ONLY had extreme liberal governance and policies to make it what it is today?

How could they seriously write that?

I mean, WTF?!?!?!

True insanity. Does anyone read that rag of a magazine? Why doesn’t someone make a youtube video calling out that absurdity.

Man we are living in 1984.


48 posted on 11/21/2012 9:25:18 PM PST by Individual Rights in NJ (Let's settle somewhere new?~ I'm thinking places people call "blue".)
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To: upchuck
Isn't California doomed to get nuked and have headquarters for an evil Master Computer named Skynet in the Near Future?


49 posted on 11/21/2012 9:27:52 PM PST by Morpheus2009
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To: TChad
Ineptocracy

New word for the day.

50 posted on 11/21/2012 9:37:11 PM PST by justrepublican (Screaming like a "Vexatious requester" at a Wellstone memorial...........)
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