Skip to comments.Record Bankruptcy for Detroit
Posted on 07/18/2013 11:17:29 PM PDT by lbryce
DETROITThe city of Detroit filed for federal bankruptcy protection Thursday after decades of decline, a new low for a city that once defined industrial America's might but was hollowed out by the flight of residents and businesses to the suburbs.
The filing by the automobile capital and onetime music powerhousewhich has liabilities of more than $18 billionis the country's largest-ever municipal bankruptcy case.
The move to restructure the debt is bound to set off months, if not years, of legal wrangling, asset sales and cuts to benefits for Detroit workers and retirees, including 20,000 on city pensions. Owners of the city's bonds are expected to battle with retirees and others for pieces of the city's diminished wealth
(Excerpt) Read more at online.wsj.com ...
The city has been living on borrowed money and time for decades. This was going to happen sooner or later. Decades of piss-poor management and the unholy symbiosis between unions and liberal politicians finally, “fundamentally transformed” Detroit.
This city will never recover.
and somehow the commie rats who ran it into the dirt, will blame whitey and republicans for their own 52 years of liberal rule.
Why not give it to Canada.
and they wouldn’t be liberals without finding at least one way to blame republicans for their own self-inflicted suicide.
It’s like we rearranged the deck chairs and then suddenly the iceberg appears. Not a harbinger of good things to come.
Most of the tax-paying whites moved out, either outside of Detroit or out of state.
Meanwhile, the democrats gained control by default. The black panthers and the SDS absolutely loved it.
You really can't blame whites for leaving, but you can blame the black panthers and their lib-commie friends for willingly instilling fear in the vital portion of the taxpaying public.
The vital public will not move back. Detroit is dead. Even Mo-Town has left.
It is time to turn out the lights and close the door.
Liberals and their black shock-troops have destroyed more cities than nuclear weapons.
Once it was the wealthiest city in America. Socialism crept in and has done what it always does. Made it destitute. Soon this will come to States and then to America completely.
Hey bonehead liberals, you can’t borrow money forever. You must at some point pay the piper for the music you’ve enjoyed.
This is so sad. Sad for those who trusted the unions and the government.
Obama, and Jarret, said, “Nyet!” to a bailout.
Lordy...he does love the citizens of Detroit...doesn’t he?
He was bragging about saving it during the last election.
“This city will never recover.”
Most likely, neither will America, after a few more years of Obumbo and his band of Dimorats.
Detroit going bankrupt is a function of unsustainable union and pension obligations. Chapter 9 bankruptcy is a great tool to renegotiate those contracts, as happened in Stockton.
Detroit’s actually on a rebound, thought it is and does need to shrink. This was a move made by the state-appointed emergency manager because it is the only option that will give him sufficient leverage to renegotiate union deals.
Thanks! I know a bit about bankruptcy, and think you are right. However, it is sad because there are many individuals who will suffer, even though it’s their own fault.
I still find that sad, because that’s all that they knew.
“Why not give it to Canada.”
Depends on how much they charge to haul it away.
detroit is french for “to the right”
what is french for “to the wrong”?
I never put it past God to do wonders. BUT. God needs to be invited into our struggles. God won’t barge in without being invited. And to be frank, Christianity (and Judaism) lite failed to prove inviting to the Lord. One way it can be “lite” is to depend more on institutions than upon our private heart obedience, by the way. For example, people complain about the loss of prayer in schools, and that indeed was a loss of a nice thing, but more importantly it was a symptom of a deeper spiritual laxity. The US government was set up to be a mirror of the people and the less trouble the people at large put into keeping the mirror clean and free from graffiti, the dirtier it gets.
Wrong = faux
mal - bad
mauvaise - worse?
My coonass is rusty. Anyhow, I’m going to bed.
Goodbye Detroit! Hello Defaux! Desinistre?
So is mine, LOL.
This is what being run entirely by Democrats and Unions since 1961 looks like. Sweet, right? Just sit there on that Plantation and don't question when we tell you that this is the best you can get.
Oh, yeah, and be sure to hate Republicans... you know, those guys who died by the millions to free you, then keep your lazy, useless asses free? Yah, they're your real enemy.
You brian-dead, ghetto trash, oxygen-wasting butt-pimples. If you doubt my veracity, just watch one episode of "Hard Core Pawn." It's quite an eye-opener. You'll get it, real quick.
If Obama ran the country will it look like Detroit?
This won’t matter to the Detroit populace. They made this city and are responsible for what is has become.
Where’s Jesse and Al?
“BUT. God needs to be invited into our struggles.”
When I was in public school back in the 50s, we started every morning, taking turns, reading a short bible passage. The Jewish kids would read from the old testament, Christians from the new.
Today, the teachers and every one involved would be thrown in jail for doing that.
They will put Detroit up for sale and China will buy it and open a Chinese industrial complex. watch.............
Detroit fell because of corruption, liberal ideas, and white fools.
town ran by liberals.. BK.. who are they going to blame? they had a free run of that city and no republican had one damn word to say about it.. so liberal policies work?
200 years ago they walked in and took it without a fight.
We should stage a reenactment, and conveniently let them keep it.
Worse. The Federal government has guns and can print money.
Obama: “If I had a home town, it would look like Detroit.”
This is a fitting epithet for the city of Detroit. When filling pot holes for 25 years entitles one to retire at age 50, God help us.
The Union Pension Protection Fund, or whatever the real name is, guarantees that you will pay for all the debt that Detroit just defaulted on. Bend over so Obama can smile.
If it’s that federal insurance program, it only pays a percentage of the insured pension and their is a maximum that any given retiree can get. In other words, every retiree would take som “bath”, but those with the higher pension would see their pension cut by a higher amount & percenctage. This is from my memory only so don’t take it to the bank.
You didn’t mention forced busing of school children. When children were forced to ride a school bus for 45 minutes each way, rather than walk 5 minutes to a nearby school, parents moved outside the busing zone. And it was the intact families, with tax paying parents, that moved.
When pothole repairmen only have to work 25 years, and can retire at age 50 (meaning he will probably collect a pension for more years than he actually worked) is it any wonder the city is broke?
The critical point in the Detroit bankruptcy is how the Bond Holders are treated. Unless the bonded investments are a guarantee of repayment, Bonds of all municipalities(and state, and federal) are in jeopardy. Easy money to local government will evaporate, and we will see a large increase in the interest rates of those willing to buy bonds, to cover the risk of default. How the courts treat Bond holders will be critical in whether Detroit is the first of many to default or only a local tragedy.
Ya need to talk to "cripplecreek" who IMHO is wired to what is going on behind the scenes. It seems big and smart money is about to buy in low. He will give you the 411 on the Iron Ore and Tar Sands coming to the City via ships, how they will be powered by LPG, Trade and Manufacturing in Canada and a potential Manufacturing back in Detroit with resurgence of a healthy Detroit and how it may become a trading hot spot....
Will the Indians take it back?!?
How do they do that without residents of Detroit becoming citizens of Canada, free to roam their country at will? I assume you're being sarcastic, but selling them the lakeside and the other side of the bridges connecting with Canada, population (what's left of it) moved elsewhere in Detroit would have benefits.
Another idea that comes up every now in then is breaking up these large, dysfunctional cities. Instead, politicians keep coming up with schemes to integrate smaller towns with each other or folded into adjacent cities. Smaller governments work best, as long as they're not starved by all state and federal money going to propping up unsuccessful cities.
Often times, a good idea is just something that starts out silly being twisted and turned a bit. Problem is, no one in charge is dealing with problem-solving anymore.....except for propping up the puppet masters. JMHO
Why did Detroit go bankrupt? Look for the Union Label.
My favorite quip is that at one point MI and OH fought for Toledo....and OH lost.
No it isn't.
Hey, what have we ever done to you?