Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Detroit declares bankruptcy, with $18 billion in debts
Los Angles Times ^ | 07/18/13 | Tina Susman and Matt Pearce

Posted on 07/19/2013 6:55:20 AM PDT by AngelesCrestHighway

Detroit on Thursday became the largest American city to declare bankruptcy, officially succumbing to job losses in the auto industry, decades of population flight, and the collapse of revenue to cover everything from policing to street lighting. "Let me be blunt: Detroit's broke," Michigan Gov. Rick Snyder said as he recited a litany of ills that helped steer the decision and that made Detroit — once a gleaming example of American industry — into an urban wreck with debts of $18 billion. The announcement came four months after Snyder named Washington bankruptcy expert Kevyn Orr — who represented Chrysler during its successful restructuring — as Detroit's emergency financial manager to try to heave Detroit out of its fiscal morass.

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


TOPICS: Business/Economy; Culture/Society; Miscellaneous; US: Michigan; Unclassified
KEYWORDS: chapter9; detroit; detroitbankrupcy; michigan; rosemaryaquillina
Obama won't step in this cow pie!...Just the first one in the road of many to come! The democrats will run from this at top speed! Thet don't want to be saddled with "Americas problems". They just want to grow government! To bad Detroit...No political reason to save your ass!
1 posted on 07/19/2013 6:55:20 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | View Replies]

To: AngelesCrestHighway

NBC Nightly News showed a couple from Detroit. They were BOTH retired Police Officers and said the owed more money on their house than it was worth. Guess they spent the Detail Money on vacations.


2 posted on 07/19/2013 6:58:41 AM PDT by massgopguy (I owe everything to George Bailey)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway

NBC Nightly News showed a couple from Detroit. They were BOTH retired Police Officers and said the owed more money on their house than it was worth. Guess they spent the Detail Money on vacations.


3 posted on 07/19/2013 6:58:59 AM PDT by massgopguy (I owe everything to George Bailey)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway

Now Obama wouldn’t turn around and put Detroit on the back of the American tax payer...would he?...Just work you dogs!


4 posted on 07/19/2013 6:59:04 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway
Coming soon: The Detroit Bailout Telethon
5 posted on 07/19/2013 6:59:46 AM PDT by Dr.Deth
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway

I heard this morning that the population of detroit is 700,000 people. That means that every man, woman and child in that city currently owes, on behalf of the city, $25,715.

Which is $25,714 more than the equity many of them have in their homes, even owning them free and clear.

This will not end well.


6 posted on 07/19/2013 7:00:18 AM PDT by cuban leaf (Were doomed! Details at eleven.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway

If Romney was president right now, the liberals would be out of their skulls in anger...


7 posted on 07/19/2013 7:00:35 AM PDT by corlorde (forWARD of the state)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Dr.Deth

8 posted on 07/19/2013 7:00:55 AM PDT by dfwgator
[ Post Reply | Private Reply | To 5 | View Replies]

To: AngelesCrestHighway
From the article ...

"But the destruction proved too great. Two days ago, Orr sent a letter to the governor saying he saw no alternative to filing for Chapter 9, blaming decades of fiscal mismanagement, plummeting population, decaying infrastructure and failing services."

And of course, no mention from the presstitutes at the LA Times that Detroit hasn't had a Republican mayor in over fifty years.

9 posted on 07/19/2013 7:01:08 AM PDT by Colonel_Flagg (Army dad. And damned proud.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway

They need to really think outside the box with Detroit. But they won’t. They will push government intervention, in one way or another, as a “solution” to the past 50-60 years of government intervention.

If I had my way, I would eliminate almost all laws in Detroit. Pretty much anything goes. And, yes, I would include the laws that block citizens from dealing with “problem” citizens. I would like to see extremely lenient “punishment” meted out to people who engage in cleanup.

Most people are not too bad. The bad ones are typically easy to identify. Society doesn’t need them.


10 posted on 07/19/2013 7:02:38 AM PDT by ClearCase_guy (21st century. I'm not a fan.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway
The current mayor, David Bing, who was elected in 2009, began tearing down abandoned buildings as part of a revitalization effort for the city, but he lamented what he called a sense of "entitlement" among some residents who he said were unwilling to accept painful moves, such as leaving homes in abandoned neighborhoods and helping repopulate other parts of Detroit.

Hmmmm.....

11 posted on 07/19/2013 7:02:47 AM PDT by Timber Rattler (Just say NO! to RINOS and the GOP-E)
[ Post Reply | Private Reply | To 1 | View Replies]

To: massgopguy

Sorry, I don’t watch NBC or CBS or ABC or CNN or MSNBC. Can’t take the liberal cheerleading.


12 posted on 07/19/2013 7:05:30 AM PDT by From The Deer Stand
[ Post Reply | Private Reply | To 2 | View Replies]

To: corlorde
If Romney was president right now, the liberals would be out of their skulls in anger...

Here is something I've posted multiple times in the past year or so -- In their Sept 2012 issue, "Rolling Stone" magazine asked the question: "What would America look like if Romney is elected in Nov?"
Their answer: America would look like Detroit.

Staggering stupidity. Liberals come up with stuff like that and they believe that they are "thinking". Nope. That isn't what it is at all.

13 posted on 07/19/2013 7:06:17 AM PDT by ClearCase_guy (21st century. I'm not a fan.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Dr.Deth
Better link to the Motor City Telethon from Robocop 2... hate to say it, but what was campy sci-fi fantasy 20 years ago has become grim reality today. What's next for Detroit, Sin City? 300?
14 posted on 07/19/2013 7:06:49 AM PDT by Dr.Deth
[ Post Reply | Private Reply | To 5 | View Replies]

To: AngelesCrestHighway

And when interest rates rise to their historical average levels how many other cities will follow?


15 posted on 07/19/2013 7:07:10 AM PDT by albionin
[ Post Reply | Private Reply | To 1 | View Replies]

To: Dr.Deth

Laugh at Detroit now, but it certainly won’t be the only city to suffer a similar fate.


16 posted on 07/19/2013 7:10:24 AM PDT by dfwgator
[ Post Reply | Private Reply | To 14 | View Replies]

Comment #17 Removed by Moderator

To: AngelesCrestHighway

I’ve seen reports that Obama is keeping a close watch on Detroit. Some of their city officials are demanding a federal bailout. We need to write our reps and tell them not even to think about it.


18 posted on 07/19/2013 7:10:46 AM PDT by Rusty0604
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway

Just saw Steve Ratner, the man behind Obama’s automaker bailout, on CNBC. He was saying that Detroit won’t be able to cut public pensions enough to save the city; therefore it was a situation requiring infusions of ‘federal’ dollars.


19 posted on 07/19/2013 7:12:28 AM PDT by dogcaller
[ Post Reply | Private Reply | To 4 | View Replies]

To: AngelesCrestHighway
 photo morning_picdump_391_640_19_zps42a02f0d.jpg
20 posted on 07/19/2013 7:13:28 AM PDT by SkyDancer (Live your life in such a way that the Westboro church will want to picket your funeral.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway

Even the Kos kids are subdued on this topic, they much prefer the distractions tossed to them like abortion and racial witch hunts and the biggie of moral superiority, gay marriage. Stepping back I can say one thing to my fellow citizens of African-American heritage, you are no longer a real priority, hope you love your tweets from the racial agitators, but they don’t spend like money.


21 posted on 07/19/2013 7:13:29 AM PDT by junta ("Peace is a racket", testimony from crime boss Barrack Hussein Obama.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rusty0604

You know the “bailout” is coming. It’s the democrat/socialist way. Punish success, reward failure.

You’ll get a lot less success and a lot more failure that way.


22 posted on 07/19/2013 7:13:58 AM PDT by henkster (The 0bama regime isn't a train wreck, it's a B 17 raid on the rail yard.)
[ Post Reply | Private Reply | To 18 | View Replies]

To: Dr.Deth

It’s the only possible answer.

http://www.youtube.com/watch?v=yFyVs_766S4

CC


23 posted on 07/19/2013 7:14:13 AM PDT by Captain Compassion
[ Post Reply | Private Reply | To 5 | View Replies]

To: AngelesCrestHighway
Obama won't step in this cow pie!

Good. This one is ours to fix with Faith, Family, and free markets.

Just the first one in the road of many to come!

And it will look like an ant hill next to Mt Everest when the gravy train is cut off to places like Chicago, Philly, and others.
24 posted on 07/19/2013 7:14:29 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway

Detroit is a shining example of what happens when you let Rats run everything.


25 posted on 07/19/2013 7:15:54 AM PDT by Blood of Tyrants (Inside every liberal and WOD defender is a totalitarian screaming to get out.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AngelesCrestHighway
Have they blamed this on racism yet? Oh no, just by me mentioning racism that means...


26 posted on 07/19/2013 7:16:13 AM PDT by GrandJediMasterYoda (Someday our schools will teach the difference between "lose" and "loose")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Timber Rattler
My family left (fled?) Detroit for the suburbs in ‘65 due to the deterioration of the city in terms of education and increased crime.

Then in 1967 Detroit burned itself to the ground. After that they were foolish enough to elect Mayor Coleman Young, a corrupt city councilman. From that point forward, 1972-73, Detroit entered a spiral death spin of mismanagement and corruption.
Mayor Young tried to revitalize the city with an empty slogan, “Renaissance”. well, it never worked.
Unfortunately, this curse upon Detroit was further reinforced by the influx of better cars from Japan after the 1973 Oil Embargo and Yom Kippur War between Israel and Egypt/Syria.

I left Michigan altogether in 1983 but it is a beautiful Great Lake state with so much to offer and yet, today, we see that it is all over for the city.

Maybe the city can sell off huge tracts of land and bargain prices and encourage investment in businesses or agriculture. The ONLY way Detroit will ever recover is to eliminate the crime fear. Until that happens, Detroit will remain in the Middle Ages.

An appropriate analogy for Detroit is the DEATH GRIP held by the Ford family on the Detroit Lions football team which has lost consecutively since 1958!!
Once they relinquish ownership, Detroit sports fans will be able to breath again and the team will begin winning. The same holds true about how the city is run. The Democrats have run it into the ground. Detroit needs new management, Republican management but the UNIONS will never budge so nothing will change as private sector employees have gotten used to handouts and entitlements while public sector employees have gotten used to graft and corruption, who's going to change that now?

27 posted on 07/19/2013 7:32:40 AM PDT by Netz (Netz)
[ Post Reply | Private Reply | To 11 | View Replies]

To: AngelesCrestHighway
"Obama won't step in this cow pie!...Just the first one in the road of many to come! The democrats will run from this at top speed! Thet don't want to be saddled with "Americas problems". They just want to grow government! To bad Detroit...No political reason to save your ass!"

Betcha he will. It may be disguised as a Federal guarantee of bonds, money laundered through the state, or new Federal legislation, but I bet Detroit will get Federal dollars and pick our pockets.

28 posted on 07/19/2013 7:33:02 AM PDT by Truth29
[ Post Reply | Private Reply | To 1 | View Replies]

To: Truth29
I bet Detroit will get Federal dollars and pick our pockets.

You've got it right. It will be called the Great American Cities Act, or something like that. It might not even mention Detroit by name.

The Republicans in Congress will grumble, but they will eventually support it in exchange for, well, nothing at all.

29 posted on 07/19/2013 7:47:24 AM PDT by Leaning Right
[ Post Reply | Private Reply | To 28 | View Replies]

To: ClearCase_guy

For any democrat the only answer to a crisis is “Government intervention” which translates to pissing away the taxes we pay...


30 posted on 07/19/2013 7:50:09 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | To 10 | View Replies]

To: AngelesCrestHighway

After pouring billions into that hellhole, the productive people will now be asked to fork over billions more to support that decaying pile of steaming manure.


31 posted on 07/19/2013 7:55:04 AM PDT by I want the USA back (If I Pi$$ed off just one liberal today my mission has been accomplished.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cuban leaf

I have read that a good percentage of people in Detroit don’t feel the need to pay property taxes and haven’t done so for years (which to most Americans, is positively mind-blowing, because just about anywhere else, your stuff would be in the street within six months). The unions are complaining that Detroit can’t go bankrupt because these taxes are owed. I don’t know about you, but I’m popping some popcorn!


32 posted on 07/19/2013 7:56:04 AM PDT by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
[ Post Reply | Private Reply | To 6 | View Replies]

To: Leaning Right

The Republicans in Congress will grumble, but they will eventually support it in exchange for, well, nothing at all.

I’m not so sure the democrats will “step in it”. Elections are coming and they may back way off (for Hilary’s sake). Then once Hillary’s elected the pottie will be flushed again with out tax money...WHOOSH!


33 posted on 07/19/2013 7:56:17 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | To 29 | View Replies]

To: Dr.Deth

Detroitapalooza...?


34 posted on 07/19/2013 7:59:32 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | To 5 | View Replies]

To: Blood of Tyrants

Save Detroit!...Why?


35 posted on 07/19/2013 8:00:51 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | To 25 | View Replies]

To: Dr.Deth

36 posted on 07/19/2013 8:03:53 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | To 5 | View Replies]

To: AngelesCrestHighway
Perhaps this event will make the libs and the blacks realize that they should cherish the ordinary white Americans whose taxes pay the bills.
Or not.
37 posted on 07/19/2013 8:08:27 AM PDT by expat2
[ Post Reply | Private Reply | To 1 | View Replies]

To: massgopguy

Mostly this was a problem due to the long and continued drop in real-estate values in Detroit as a result of its collaps as a city.


38 posted on 07/19/2013 8:10:20 AM PDT by expat2
[ Post Reply | Private Reply | To 2 | View Replies]

To: AngelesCrestHighway

No, this is going to be done quietly. Money will be somehow laundered through GM.

I predict GM will somehow experience a remarkable turnaround and they will pay back the government. Except the money will go to Detroit and the will disappear from the Feds books.

Making 20 billion vanish is easy.


39 posted on 07/19/2013 8:16:01 AM PDT by EQAndyBuzz (The reason we own guns is to protect ourselves from those wanting to take our guns from us.)
[ Post Reply | Private Reply | To 36 | View Replies]

To: AngelesCrestHighway

Somehow the language in the photo does not seem authentic for the locale.


40 posted on 07/19/2013 8:21:23 AM PDT by Senator_Blutarski
[ Post Reply | Private Reply | To 36 | View Replies]

To: expat2

Or not...


41 posted on 07/19/2013 8:27:02 AM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | To 37 | View Replies]

To: Truth29

The bailout will be framed in the context of race. Anyone who opposes it will be called a racist. After all, it is a disproportionately black city.

Pensions are the key to the bailout. Instead of reducing the obscene union pensions, the federal government will assume them for 100 cents on the dollar. After all, it isn’t fair for these hard working government employees to take the kind of hit those of us in the private sector have been taking for decades. Politicians can frame this as a humanitarian gesture and not a direct bailout of the city.

The second dimension will be huge infrastructure projects, funded by the federal government. These will be packaged as investments in people and jobs. Of course they will really be payoffs to the unions and corrupt politicians. None of the unskilled chronically unemployed in Detroit will benefit from these jobs.

With the federal government bankrolling pensions and infrastructure, and the debt service eliminated in bankruptcy court, the city’s operating budget can probably be brought in line with tax revenue for a few years. This will allow Obama and Congress to claim they didn’t bail out the city’s operating budget and the city is making it on its own. After a few years the city will start borrowing again to add to the bureaucracy, pay higher benefits to union public workers, and repair the “new” buildings that have been vandalized by the citizens. The slide to bankruptcy will begin again.

Clearly the bondholders will lose 100% in bankruptcy. But as we know, Wall Street today doesn’t take kindly to losses. The question therefore is, how will Congress bail out the holders of Detroit’s debt and keep it secret from the public? Sounds like a job for a Congressional staffer. Bury a payoff to the banks in a 2000 page bill such as the coming amnesty bill. The press will never report it and both parties will be complicit.


42 posted on 07/19/2013 8:28:29 AM PDT by Soul of the South (Yesterday is gone. Today will be what we make of it.)
[ Post Reply | Private Reply | To 28 | View Replies]

To: SkyDancer

What a telling photo. It would be interesting to see a timeline with pictures of the city’s demise and who was in charge.


43 posted on 07/19/2013 8:55:12 AM PDT by Maudeen (Proverbs 3:5-6)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Maudeen

Been to H - amazing city. Went to the A-Bomb building which is an historical site. They maintain it to keep it from collapsing. Also stood at ground zero.


44 posted on 07/19/2013 9:13:22 AM PDT by SkyDancer (Live your life in such a way that the Westboro church will want to picket your funeral.)
[ Post Reply | Private Reply | To 43 | View Replies]

To: expat2

what you said translations as follows:

blah blah blah blah taxpayers give you free stuff blah blah blah blah


45 posted on 07/19/2013 9:30:30 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
[ Post Reply | Private Reply | To 37 | View Replies]

To: dogcaller

then the assets of the city are liquidated and the city ceases to exist. period.

This is a failed government scenario. Just like all the case law with the CSA creditors.


46 posted on 07/19/2013 9:31:47 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
[ Post Reply | Private Reply | To 19 | View Replies]

To: Dr.Deth
"What's next for Detroit, Sin City? 300?"

Frog Town. Or maybe Barter Town?

Yeah, it's coming.

47 posted on 07/19/2013 10:01:34 AM PDT by StormEye
[ Post Reply | Private Reply | To 14 | View Replies]

To: Soul of the South

Well stated and very plausible.


48 posted on 07/19/2013 11:33:30 AM PDT by Truth29
[ Post Reply | Private Reply | To 42 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson