Posted on 03/01/2013 11:58:22 AM PST by Responsibility2nd
(Newser) – Ah, Detroit—it's miserable, murderous, and, as of noon local time today, likely officially in a state of financial emergency. Per Mayor Dave Bing, Gov. Rick Snyder is set to declare that emergency today, which is expected to result in Snyder appointing a financial manager who will seize hold of the city's finances, reports the Detroit Free Press. As Reuters explains, that means the state will effectively take over the city, a move that the Free Press notes is "sure to ignite anger."
The state imposed some oversight on the city in April 2012, but Snyder was frustrated by the slow pace of reforms and instituted a review in December; earlier this month, that review team determined that the situation should be labeled an emergency. Detroit currently has $14 billion in long-term liabilities and a deficit of $327 million, a figure that could grow by $100 million by July. Bing didn't divulge details about what Snyder was going to talk about, but said, "I think everybody's got a pretty good idea of what the announcement will be."
There’s a lot more going on here than meets the eye and a lot of people are going to end up eating their words.
The democrat gem of the midwest (Chicago) will end up wishing they had Detroit’s luck.
So people in the rest of the state will be paying more because Detroit is a basket case.
And the people who drove Detroit into the ground? Will they lose their jobs? Probably not. They’ll keep their salaries for their failing performance.
Detroit’s last Republican Mayor was Albert Cobo. He died in office in 1957. It was a city of 2,000,000 back then with a White majority. Now it is below 700,000 and Whites make up less than 8% of the population (meaning well over 1,000,000 Whites 50 years ago and just a bit over 50,000 of them today).
-——a lot of people are going to end up eating their words.——
Please expand that thought. Freepers dissing Deeetroit or Eurocrats dissing Republican pillaging their turf?
Did you see this bit of good news?
The SEIU dues skim (theft) ended today.
http://www.michigancapitolconfidential.com/18344
Ideal for retired Freepers, not so good if you need to make a living.
A turnaround will be very difficult when the problem is corruption in the hearts of every resident, politician, city contractor and employee of the city. Vipers is what you find in a den of vipers.
Might be better to just bulldoze the entire region and let it return to forests and farmland.
Both. I personally am real happy to see republicans taking bold moves. Rick Snyder is a businessman with lots of big business contacts. He’s correct in saying that the city needs to run as a company and treat the people as customers.
There is a lot of private money pouring into Detroit mostly in the form of prime riverfront or industrial property being bought. Its happening because they knew this was coming and that big money is stepping up to rebuild.
There was a billion dollars offered for Belle Isle and that kind of money doesn’t get offered without an reasonable chance of real success.
Name it Liberal National Park.
****” They need to demolish Detroit and return it to farmland. No amount of emergency CPR can save it. It is a conclave of criminal activity and condemned buildings.” *****
Moving to a City near you. (I remember Katrina)
TT
Copper was abundant in the Lower Peninsula of Michigan and the little trading post of Detroit grew to include machinists who could turn that copper into engine parts to keep the boats running. As happens, that industry fed others -- rope makers found a home in Detroit, too -- and eventually the expertise of the marine engine industry spawned the automobile engine business.
But that was then. Nowadays, most of Detroit's population huddles there because there's nowhere else to go that pays welfare benefits like Michigan does. Sure, there are plenty of good, hard-working sorts, but Detroit has lost its economic reason for being.
What's left of the Big 3 is in the suburbs [and we must remember that the Detroit Metro is still huge at 5 million -- it's just the core city that's a basket case] and the shiny headquarters downtown may pay property taxes but the bulk of the workers go home to burbs at night.
Michigan can try to put Detroit's finances in order, but it can't bring its economy back to life. Eventually, people have to do that.
Bing’s a CLASS DUDE, at least in my book. He could shoot some hoop and seemed to be a good guy back then. But NO ONE can work to improve Detroit WITHIN THE SYSTEM, so it’s best to see the city government get crushed.
But don’t be surprised if Bing rises up and is amount the people that actually turn the city around.
I hope that my “reading between the lines” is not accurate this time, but it sounds like this Republican governor is about to embark upon a bailout of Detroit. At least in my experience “let’s work together” means folks who haven’t caused the problem are going to be required to “solve” it.
I REALLY hope this does not turn out to be the case—for the sake of the good Michigan folks outside of Detroit.
Tell me more. While I know Chicago is corrupt, taxes are far too high, and the city government is no doubt filled with bloated government employees, at least Chicago has some strong revenue sources that haven’t left town yet — thinking here of the financial industry, the trading and commodities floors, etc.
Is there a chance that some of these are about to bail from the city or the state?
Chicago is racking up debt at an astounding rate with every intention of the feds paying it off. When it doesn’t happen, the city will burn.
As far as Detroit is concerned, most of the lip flapping here at FR is just a childish pissing contest to see who can trash the city the most but they’re about as knowledgeable as Rachael Maddow. Some of us have actually been watching and know what’s going on with business investing in Detroit.
So you’re implying that Detroit will emerge stronger than ever .... the confluence of having grownups fix the finances and investors continuing to invest. Cool.
Give it to Mitt!
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