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Detroitís bankruptcy: A warning to NYC
New York Post ^ | 07/23/2013 | Nicole Gelinas

Posted on 07/23/2013 7:47:14 AM PDT by SeekAndFind

Edited on 07/23/2013 7:47:53 AM PDT by Admin Moderator. [history]

What a difference four decades makes. In the mid-í70s, New York Cityís threat of bankruptcy was a horror that the state, feds and city ultimately avoided. Last week, Detroit declared bankruptcy because Michigan thought it was the best choice ó and Washington stayed silent.


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


TOPICS: Culture/Society; Government; News/Current Events; US: Michigan; US: New York
KEYWORDS: bankruptcy; chapter9; detroit; lessons; michigan; newyork; nyc; rosemaryaquillina
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1 posted on 07/23/2013 7:47:14 AM PDT by SeekAndFind
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To: SeekAndFind

2 posted on 07/23/2013 7:48:29 AM PDT by SeekAndFind
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To: SeekAndFind

And Chicago, LA, St Louis, Philly, Baltimore...........


3 posted on 07/23/2013 7:49:01 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: SeekAndFind
New York - mid 70's.

In the early 80's in the middle of Upstate New York cars still bore bumper stickers reading "Let the Apple Rot". Today I suppose somebody in Michigan might make a few bucks with the motto "Let Motown Go Down (and good riddance)".

4 posted on 07/23/2013 7:55:04 AM PDT by katana (Just my opinions)
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To: SeekAndFind

Bailing out Detroit will be about as effective long term as if the the crew of the Titanic bailed out every bathtub on the ship. The ship and the crew would still be lost. Obama is probably telling the Chinese not to worry. He is not using the money he is borrowing tom”save”Detroit, Bernacke is simply going to print it. Absurdities lead to collapse.


5 posted on 07/23/2013 7:56:22 AM PDT by allendale
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To: allendale

Detroit should not be bailed out but its the least of our problems. Cities with much much larger debts are going to come looking for money at some point.


6 posted on 07/23/2013 7:59:38 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: SeekAndFind
Detroit:
A DEMOCRAT COLLECTIVE FAILURE

Democrats did it ALL BY THEMSELVES !

Ah ha, ha, ha, ha, ha, ...

7 posted on 07/23/2013 8:03:01 AM PDT by Yosemitest (It's Simple ! Fight, ... or Die !)
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To: cripplecreek

I have little hope for Detroit. They have crashed and will be rebuilt with the same cast of characters in charge. Unlike NYC, and other cities, Detroit’s current population are not tasxpayers. So, after the crash, I see no real possibility of revenue creation. Even if outside business interests move in, they still have a crime-ridden uneducated populace.


8 posted on 07/23/2013 8:04:15 AM PDT by umgud (2A can't survive dem majorities)
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To: umgud

Skipping the usual fixation on Detroit.

Is a magical unicorn going to crap gold coins in America’s cities? Their debt is growing perpetually and there aren’t enough taxpayers in the world to save them from the inevitable. Believing otherwise is just standard Keynesian thinking.


9 posted on 07/23/2013 8:09:10 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: umgud

Some parallels between Detroit and NYC ( from the article):

* Detroit owes $5.7 billion for retiree health care. New York owes $88.2 billion — and has no money squirreled away. That’s $20 billion more than Detroit when adjusted for NYC’s larger population (NYC is 12 times bigger).

* Pensions? New York owed pensioners $69.9 billion more than it set aside as of last year’s annual report. Adjusted for population, that’s $28 billion more than Detroit owes.

* Bondholder debt? New York owes $77.3 billion. Detroit beats NYC there by about $34 billion — but even that should be a warning, not a comfort. People kept loaning until it was too late to maintain the illusion that Detroit could afford its retirement benefits — and now both groups will suffer.

What about budget deficits?

* Detroit can’t balance its annual budget because it must spend one-third of its revenues on health retirement benefits and debt. Well, New York’s budget has run an operating deficit six of the past seven years (with the shortfalls covered by pre-2008 surpluses).

And NYC spends one third of the budget on health and retirement benefits and debt.

* Detroit lost the auto industry. And New York, half a decade after Lehman Bros. collapsed, is still missing more than 30,000 jobs from its premier industry, finance. The sector’s ranks remain down 7.5 percent.

That’s important, because finance still provides 28.9 percent of New York’s income from wages — and we need the taxes on those wages to keep city services up so the world’s global elite don’t decamp with their cash.

* One difference -— NYC’s median household income, about $51,270 (thanks to Manhattan), is nearly twice Detroit’s.


10 posted on 07/23/2013 8:30:50 AM PDT by SeekAndFind
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To: SeekAndFind

The difference between NYC and Detroit, is that there is tremendous wealth in NYC that can (and will) be taxed to increase revenues - at least in the short run. There is no way for Detroit to increase revenues - there is almost nobody left with any money to tax.


11 posted on 07/23/2013 8:36:47 AM PDT by qwerty1234
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To: SeekAndFind; umgud; cripplecreek; Yosemitest; allendale; katana

While it’s true that there aren’t enough taxpayers in the world to solve the cesspool that is Detroit (and Chicago, LA, Philly, NYC etc.), as a member of the taxpaying chumps of the country, there are also too many tax evaders in the country, be they corporations big or small, your friendly neighborhood secretary, or black conservative underground restaurant owning tax evaders.

And while Detroit is a cesspool (and I hope when it finally gets to the sucking sound around the drain, it takes a bunch of unions, union-types, criminal elements, and commies with it), it will be deemed too big to fail and the temporary fix will AGAIN come out of our pockets.


12 posted on 07/23/2013 8:46:31 AM PDT by viaveritasvita ("The One who reigns forever, He is a friend of mine, the G-d of angel armies, is always by my side.")
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To: viaveritasvita
it will be deemed too big to fail and the temporary fix will AGAIN come out of our pockets.

Only because conservatives lack the courage and vision to come up with solutions of our own. Democrats know us far too well to simply let our inaction go unnoticed.
13 posted on 07/23/2013 8:51:37 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: viaveritasvita

Bulldoze it!


14 posted on 07/23/2013 8:56:38 AM PDT by Yosemitest (It's Simple ! Fight, ... or Die !)
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To: SeekAndFind
Detroit should not be bailed out but its the least of our problems.

Of course Detroit should not be bailed out . . . but . . . what problems?

There’s no problem. People (politicians, welfare recipients, rich people, students on scholarship) spend money they don’t have, they make promises thay know can’t be kept, they put off consequences until the consequences can no longer be put off, then reality comes knocking.

Sure . . . it’s brutal. It’s tragic. A lot of people get hurt. Public health declines, suicides increase, crime becomes worse . . . but . . . no problem.

Folly finds its own solution.

What did everyone think would happen?

15 posted on 07/23/2013 8:57:20 AM PDT by YHAOS
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To: SeekAndFind

I’m an NYPD cop. I sure hope my pension is there when I am eligible for retirement. Luckily I’ll be young enough to begin a whole new career if need be.


16 posted on 07/23/2013 8:59:33 AM PDT by thefactor (yes, as a matter of fact, i DID only read the excerpt)
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To: YHAOS
What did everyone think would happen?

Looking at the answers in this thread I'd say a lot of people think growing debt will never become a problem as long as there are taxpayers to milk.

The taxes in Detroit were jacked up to pay down debt and they just ended up with even less taxpayers. Anyone who thinks any other city in America is immune to the same economic reality is a moron.

Chicago is $97 billion in debt and just got a credit downgrade which will make the debt grow even faster. The city will inevitably seek to increase revenues and people will flee.
17 posted on 07/23/2013 9:06:32 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: katana

The difference between Detroit and NYC?

NYC has the financial industry to paper over with illusion and BS the insanity of the city failure.

Detroit only has vacant manufacturing buildings in rubble and social leaches who will beg the Feds to feed them.

Show me a city run by ComDems that is not a total failure. There is not one.


18 posted on 07/23/2013 9:07:31 AM PDT by Texas Fossil
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To: cripplecreek
"The city will inevitably seek to increase revenues and people will flee."

As I said . . . No problem. Folly finds its own solution.

19 posted on 07/23/2013 9:13:28 AM PDT by YHAOS
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To: YHAOS

Unfortunately people running away just go somewhere else and start the process all over. After all, the democrats of Detroit came to what was once a republican city.


20 posted on 07/23/2013 9:20:29 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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