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Detroit To Default Today, "Shared-Sacrifice" To Follow
Zerohedge ^ | June 14, 2013 | Tyler Durden

Posted on 06/14/2013 9:24:34 AM PDT by Former Proud Canadian

And so the next casualty of the inevitable municipal collapse appears, which is, as expected, that one-time symbol of all that was right with a (once upon a time) manufacturing America, having since been replaced with the anti-symbol of all that is broken: Detroit.

DETROIT BEGINS MORATORIUM ON ALL DEBT SERVICE PAYMENTS FOR UNSECURED FUNDED DEBT

DETROIT TO DEFAULT ON CERTIFICATES OF PARTICIPATION DUE TODAY

And, true to from in the New Normal America, where the "fairness doctrine" rules supreme under Big Brother's watchful eye, the premise of the upcoming glorious recovery is a well-known one: "the shared-sacrifice." To wit: "The City currently faces approximately $17 billion in total liabilities. Detroit is insolvent...

(Excerpt) Read more at zerohedge.com ...


TOPICS: Business/Economy; Constitution/Conservatism; News/Current Events; US: Michigan
KEYWORDS: default; detroit; michigan; municipal
Population about 700,000 and $17 billion in debt. I live in a city of about 250,000 one mile from downtown Detroit. Municipal debt is about $115 Million, but there is a "rainy day" fund of approximately the same amount, therefore no net municipal debt.
1 posted on 06/14/2013 9:24:34 AM PDT by Former Proud Canadian
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To: Former Proud Canadian

Get ready,the state of Michigan will be reaching for your wallet soon.


2 posted on 06/14/2013 9:27:32 AM PDT by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: Former Proud Canadian

The democrats own Detroit.


3 posted on 06/14/2013 9:28:08 AM PDT by dragonblustar (NSA, can you here me now?)
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To: Springman; cyclotic; netmilsmom; RatsDawg; PGalt; FreedomHammer; queenkathy; madison10; ...
In my opinion, its better to default now that the state is in GOP hands when we can force fiscal responsibility. Granholm would have simply serviced Obama to take money from the taxpayers.

 photo MIPing_zps6ed55a1c.jpg

Michigan legislative action thread
4 posted on 06/14/2013 9:30:01 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Farmer Dean

Hahaha. They are getting a billion dollars interest free to build the bridge. That’s enough.


5 posted on 06/14/2013 9:30:20 AM PDT by Former Proud Canadian (The IRS--a softer Gestapo)
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To: cripplecreek

The proper solution would be to dis-incorporate the city of Detroit and form new communities from the remnants of that section of Wayne County.


6 posted on 06/14/2013 9:31:14 AM PDT by Publius
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To: cripplecreek

Bingo gringo! GM like screwing of bondholders to protect bloated pensions.

http://confoundedinterest.wordpress.com/2013/06/14/detroit-suspends-payments-on-unsecured-debt-sticking-it-to-bondholders-like-gm/


7 posted on 06/14/2013 9:31:15 AM PDT by whitedog57
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To: dragonblustar

“The democrats own Detroit.”

So ask them how they feel about “owning” something that’s worth less than nothing!


8 posted on 06/14/2013 9:31:36 AM PDT by vette6387
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To: Former Proud Canadian

yep... but when I talk to my liberal family back there, they blame everything on the evil Republican governor. It really is quite sickening, and I can’t talk to them about it. they are completely deluded.

after 80 years of dem/union rule, and it’s the fault of a guy barely in office 2 years.


9 posted on 06/14/2013 9:33:57 AM PDT by Chuzzlewit
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To: Publius

And the debt? The debt holders get the property?
notice i didn’t say a word about the unions.


10 posted on 06/14/2013 9:34:17 AM PDT by wiggen (The teacher card. When the racism card just won't work.)
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To: Former Proud Canadian
I think that the term ‘shared sacrifice’ translates into ‘Federal Bail-Out’!

It's just a matter of time

11 posted on 06/14/2013 9:35:17 AM PDT by SMARTY ("The man who has no inner-life is a slave to his surroundings. "Henri Frederic Amiel)
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To: wiggen

You liquidate anything owned by the city and distribute it among the bondholders. Consider it a going-out-of-business sale.


12 posted on 06/14/2013 9:35:44 AM PDT by Publius
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To: Former Proud Canadian

I guess if I lived there and owned a house, I’d equity it out to the hilt and walk away. Let Obama and government deal with it. Best thing to do is leave.


13 posted on 06/14/2013 9:36:25 AM PDT by Gaffer
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To: Farmer Dean

The deal was Obama would get a second term, and then bailouts of CA, IL, MI and NY would be forthcoming.

But that pre-supposed that he would have rolled the Pubbies on the sequester by now and have an open checkbook. OOOOOPS!


14 posted on 06/14/2013 9:36:38 AM PDT by Buckeye McFrog
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To: Former Proud Canadian
"the shared-sacrifice."

The taxpayers have sacrificed already. The residents have done nothing.

It's THEIR turn.

15 posted on 06/14/2013 9:36:54 AM PDT by Jim Noble (When strong, avoid them. Attack their weaknesses. Emerge to their surprise.)
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To: Former Proud Canadian

This means their creditors will be screwed with the exception of the union pension liabilities. The “shared sacrifice” will be something like the union will pay a few dollars for their own insurance or pension and taxes will be raised to pay for the rest of it.


16 posted on 06/14/2013 9:36:56 AM PDT by Rusty0604
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To: Publius

Maybe we should auction it off to the highest bidder.

I bet Merkel would be interested... it could be the US Euro annex!


17 posted on 06/14/2013 9:37:46 AM PDT by SMARTY ("The man who has no inner-life is a slave to his surroundings. "Henri Frederic Amiel)
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To: whitedog57

The democrats always demand money with no oversight. Its like giving a crack head a blank check. Jenny Granholm would have given it to them while cutting out some tax breaks for unions.

With republicans in control of the state, the crackheads aren’t getting a blank check. They’re getting things like privatization of services and carefully controlled allowances. Its why they fought so hard against a free bridge, the city doesn’t control the funds which is really all they wanted.

I’ve got fairly high hopes for Detroit despite the mess because this isn’t being done in typical democrat fashion and business is slowly returning to the city.


18 posted on 06/14/2013 9:47:08 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Former Proud Canadian

Just another way of making the productive people pay for the crime, drugs, prostitution and jihadi activity in that hell hole of a city.


19 posted on 06/14/2013 9:47:40 AM PDT by I want the USA back (If I Pi$$ed off just one liberal today my mission has been accomplished.)
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To: Former Proud Canadian

“Shared-Sacrifice”:

The politicians share.

The taxpayer sacrifices.


20 posted on 06/14/2013 9:49:17 AM PDT by Mr Rogers (Liberals are like locusts...)
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To: Rusty0604

all city pensioners should be required to live in the city to collect....if they don’t, they forfeit 50% of their pension...


21 posted on 06/14/2013 9:51:06 AM PDT by cherry
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To: Publius

Obama will find a way. I already am cursing at him for a bailout that has yet to occur but will. He bailed out GM. He will make up (someone will make it up foe him since he is pretty dumb)a story about how a failure of Detroit will cast the entire nation into a great depression and therefore its far better to bail them out and make his union pals whole.


22 posted on 06/14/2013 9:51:10 AM PDT by wiggen (The teacher card. When the racism card just won't work.)
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To: Mr Rogers

“Shared-Sacrifice”:

The politicians share.

The taxpayer sacrifices.


JUST ANOTHER BEAUTIFUL DAY IN THE NEIGHBORHOOD


23 posted on 06/14/2013 9:53:20 AM PDT by rdcbn
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To: rdcbn

Politicians say, “More taxes will solve everything”...

...and the band played on....


24 posted on 06/14/2013 9:54:51 AM PDT by dfwgator
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To: Former Proud Canadian

some may argue just living in detroit ia already a personal sacrifice.


25 posted on 06/14/2013 9:55:11 AM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: cripplecreek
They’re getting things like privatization of services and carefully controlled allowances.

They don't even deserve that. It's still wealth transfer from people that earned it to people that did not, only better managed.

26 posted on 06/14/2013 9:55:18 AM PDT by Count of Monte Fisto
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To: Count of Monte Fisto

Not all of us are afraid of losing a whipping boy.


27 posted on 06/14/2013 9:58:58 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Former Proud Canadian

Lefty quagmire, just walk away Re’nee.
But don’t come here!


28 posted on 06/14/2013 10:01:20 AM PDT by tumblindice (America's founding fathers: All armed conservatives.)
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To: Former Proud Canadian

I’m 55 and was born and raised about 100 miles West of Detroit. The town has always been, to my recollection, a failure of a city.


29 posted on 06/14/2013 10:01:59 AM PDT by Cyber Liberty (I am a dissident. Will you join me? My name is John....)
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To: Publius

That’s not a bad idea. Narrow it down and let the Democrat voters suffer the consequences of their actions.


30 posted on 06/14/2013 10:02:03 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: Chuzzlewit

Until Detroit addresses the problems essentially their tax/spending nothing changes except Michigan getting their bills instead of the residents of Detroit. Were I a Michigan governor/legislator I would tell Detroit, heal thyself or die, the choice is yours but the state will not fund your parasitic existence anymore.


31 posted on 06/14/2013 10:06:23 AM PDT by sarge83
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To: Former Proud Canadian
The rest of the US should NOT have to help Detroit out.

The voted the Leftists in the last few years. They need to figure out how to pay for things.

Maybe they could sell all the houses in Detroit for a dollar each and it could be bulldozed and a new city built with a promise of no new Democrats running things for the next 100 years.

If they don't like that plan, they should ask the Saudis to bail them out.

32 posted on 06/14/2013 10:20:20 AM PDT by PATRIOT1876 (The only crimes that are 100% preventable are crimes committed by illegal aliens)
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To: dfwgator
*Politicians say, “More taxes will solve everything”...

...and the band played on....*

People movin’ out, people not movin’ in,
Why, because of the mess the Dems have got them in.
Run run run, but you sure can't hide.

and the only safe place to live, is in Hamtramck on the weekends.

and the band played on....

33 posted on 06/14/2013 10:28:09 AM PDT by PATRIOT1876 (The only crimes that are 100% preventable are crimes committed by illegal aliens)
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To: wiggen

He had the votes in Congress for a bailout in 2009. He doesn’t have those votes today.


34 posted on 06/14/2013 10:35:24 AM PDT by Publius
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To: Publius

Yes. 100% correct but he’s done plenty on his own and gotten away with it. And when he starts using words like ‘entitled and we owe it to them’ Boehner will start to weep and he’ll get his way.
I never ever wanted to be wrong more.


35 posted on 06/14/2013 10:45:09 AM PDT by wiggen (The teacher card. When the racism card just won't work.)
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To: Former Proud Canadian
Put up toll booths to get the h*ll out of Detroit. That should generate some revenue.....
36 posted on 06/14/2013 10:51:33 AM PDT by Average Al ( Our founder fathers never knew we could fail due to a Techtatorship.)
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To: Former Proud Canadian

Is Suze Orman still swearing by Muni Bonds?


37 posted on 06/14/2013 12:53:17 PM PDT by Graybeard58 (_.. ._. .. _. _._ __ ___ ._. . ___ ..._ ._ ._.. _ .. _. .)
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To: Chuzzlewit

-— yep... but when I talk to my liberal family back there, they blame everything on the evil Republican governor. It really is quite sickening, and I can’t talk to them about it. they are completely deluded. ——

Wooooooooooooow.... You’re right. Words would be wasted.


38 posted on 06/14/2013 12:57:03 PM PDT by St_Thomas_Aquinas
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To: Former Proud Canadian

“Shared-Sacrifice” To Follow>>>>>>>

What a joke. The rest of Michigan will be forced to bail them out. There is no shared sacrifice.


39 posted on 06/14/2013 12:59:19 PM PDT by dennisw (too much of a good thing is a bad thing - Joe Pine)
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