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Detroit bankruptcy raises concerns about other US cites under huge retiree debt
Fox News ^ | 7/23/13

Posted on 07/23/2013 9:07:54 AM PDT by Kartographer

Other cities now on the radar include Cincinnati, Minneapolis, Portland, Ore., and Santa Fe, N.M. -- following Moody’s saying in April that they and 11 other municipalities were being reviewed for a possible credit downgrade, the result of a new analysis system that further considers pension liabilities.

Though much of the national concerns have focused on pension liabilities, heath care costs for retired municipal employees pose an equally if not larger problem.

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


TOPICS: Business/Economy; Government; News/Current Events; US: Michigan
KEYWORDS: chapter9; detroit; michigan; rosemaryaquillina
Our great cities Obituaries will read Suicide by drowning in debt.
1 posted on 07/23/2013 9:07:54 AM PDT by Kartographer
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To: Kartographer

Economics are like basic physics. The laws simply don’t change.


2 posted on 07/23/2013 9:09:39 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Kartographer

A group of them will declare bankruptcy all at once and force a CRISIS that will not go to waste.

Bailouts will be forthcoming for all.


3 posted on 07/23/2013 9:10:55 AM PDT by Buckeye McFrog
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To: Kartographer

In thinking more about the Detroit judge’s quashing of the bankruptcy filing, the State Constitution clearly says the pensions are a contract and even though it also says they are not to be diminished, would not the voiding of an unconscionable contract under contract law be possible, bankruptcy or not? IANL


4 posted on 07/23/2013 9:12:08 AM PDT by NonValueAdded (Unindicted Co-conspirators: The Mainstream Media)
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To: Kartographer

Haven’t all those been under liberal governance for decades?


5 posted on 07/23/2013 9:12:41 AM PDT by Quickgun (I got here kicking,screaming and covered in someone else's blood. I can go out that way if I have to)
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To: NonValueAdded

It also says “by political subdivisions of the state”. That may leave them with no choice but to dis-incorporate the city and put the whole stinking mess into receivership. Then there’s no “political subdivision of the state” involved any more.


6 posted on 07/23/2013 9:18:40 AM PDT by tacticalogic ("Oh, bother!" said Pooh, as he chambered his last round.)
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To: Kartographer

Witness the end result of the Welfare State. The ever-increasing population of takers outstrip the ability of the producers to support them at anything other than confiscatory tax rates. So the producers flee and then the takers canibalize what the producers created. Eventually, the city or state or country runs out of other people’s money and assets and ends up a bombed out war zone.


7 posted on 07/23/2013 9:19:07 AM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Kartographer
Detroit:
A DEMOCRAT COLLECTIVE FAILURE

Democrats did it ALL BY THEMSELVES !

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

8 posted on 07/23/2013 9:19:37 AM PDT by Yosemitest (It's Simple ! Fight, ... or Die !)
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To: Kartographer

Somebody posted an article from Sultan Knish earlier. He made a good point. Cities used to be the place people went for jobs. Now, for a variety of reasons, there are fewer and fewer jobs in cities and the cities do everything to drive them away. So, what is the purpose of cities? His point is that bankruptcy might save a company, because a company has a reason to exist; it’s products. But the only reason for cities to exist is to provide benefits for city employees and services to the city’s parasites. No jobs. Therefore, no reason to exist.


9 posted on 07/23/2013 9:25:18 AM PDT by Gen.Blather
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To: Kartographer

You mean like Boston, Springfield, Lowell, and Lawrence, MA? There’s a storm comin’...


10 posted on 07/23/2013 9:26:58 AM PDT by pabianice
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To: Opinionated Blowhard
Not all completely bankrupt cities look like bombed out war zones. Boston and San Francisco are in just as dire fiscall shape as Detroit but on the outside the cities look fine. Industry and the private sector along with the producers will move on. The governments will only change their ways when the bankruptcy courts force them to.
11 posted on 07/23/2013 9:28:58 AM PDT by outpostinmass2
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To: Kartographer

Let me check... looking hard... still looking... nope... can’t find a givadamn anywhere.


12 posted on 07/23/2013 9:31:12 AM PDT by LibLieSlayer (FROM MY COLD, DEAD HANDS!)
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To: LibLieSlayer

LibLieSlayer you are so careless, what do I have to do sew it inside your jacket? ;-)


13 posted on 07/23/2013 9:34:46 AM PDT by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: outpostinmass2

Boston & San Fransisco have the surronding high tech industries to bolster them. Silicon Valley types go there to live.

Detroit’s main industry — automobile — is no longer viable. Also white flight drove out the tax base (I can’t blame them for leaving, though). I’m not an economist, so I can offer no knowledgeable solution.

Maybe if the city created something else to attract money or talent? AND drove out other elements. Basically the whole city would have to be restrucured. (In my dreams.)


14 posted on 07/23/2013 9:37:32 AM PDT by MoochPooch (I'm a compassionate cynic.)
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To: Kartographer

:-) I reckon so!


15 posted on 07/23/2013 9:39:03 AM PDT by LibLieSlayer (FROM MY COLD, DEAD HANDS!)
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To: Kartographer

How do you stop it? Bankruptcy is the only option.

Do you make laws that say you cannot vote for fiscally irresponsible rats?

You get what you vote for. Idiots leave their crumbling cities and states, and then vote for the same idiocy that caused their downfall.

I don’t believe that anyone should be allowed to vote unless they have skin in the game.

No welfare recipients, you are at the mercy of those that are providing your welfare, you should have to take a constitution test, to prove that you understand what it says, and be an American citizen and be able to prove it.

Over and over again, the founding fathers were right.

Instead we have idiots like Pelosi that say they are defending the constitution by enacting gun laws. All the Californians that believe that should stay in that rat state and all conservatives need to leave.

I have often thought that the best thing to do is that all conservatives move to conservative states and all liberals move to liberal states and see who fares better.

It will be the liberals begging for money, food and the basic necessities of life, from the producers of course.


16 posted on 07/23/2013 9:41:22 AM PDT by bobo1 (the KDE plasma desktop is awesome!)
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To: Kartographer

Minneapolis is in no danger what-so-ever. There os zero chance of a municipal default.

How do I know this and am so certain? We have one party rule here, and it’s party all the time!

Nothing but Spend-o-crats, as far as the eye can see!


17 posted on 07/23/2013 9:50:35 AM PDT by biggerten (Love you, Mom.)
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To: Kartographer

Thank God I get a Federal pension, not a state or municipal one.


18 posted on 07/23/2013 9:58:06 AM PDT by Poundstone (A recent Federal retiree and proud of it!)
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To: pabianice; Madame Dufarge
There’s a nor'easter comin’......Boston, Springfield, Lowell, and Lawrence, MA.......

THE GREEK SYNDROME--HOLLOWED FROM WITHIN Detroit was said to be spending $100 million per year more than it took in. When Greece turned sour, it was reported that the Greek govt had over 500 govt agencies with no discernible purpose other than to payoff political hangers-on.

NOTE: Lawrence Mass is also under the control of a latino Mayor whose loyalties lie in the Dominican Republic. Mayor Latingua is under investigation for all sort of crimes---extortion, money laundering, bid-rigging, appointing bagmen to loot public coffers, and so on. Latingua does a lot of offshore travel---could be he's laundering public money offshore using untraceable casino chips.

========================================

HOW THEY LOOT THE PUBLIC COFFERS

<><> Joint bank accounts might be used to facilitate the transfer of govt funds. Govt monies may pay for personal and private expenses, credit cards, real estate subsidies and vehicle purchases.

<><> To cover his tracks, fake invoices might be created to show that money deposited into accounts was being used for legitimate govt purposes.

The scheme might be advanced by issuing phony statements of payments from federal and state sources that actually covered the transfer of funds for his own use.

<><> L/E is directed to get ahold of: (1) copies of checks, (2) wire transfers, (3) account statements, (4) invoices, (5) bills, (6) delivery tickets, (7) correspondence including e-mail, contracts, loan agreements, and, (8) any other books or records. L/E should also explore (a) monies paid to brokers, sub-brokers, (b) family members, (c) mortgage brokers, (d) financial managers, and, (e) real estate agents, brokers, and developers.

<><> L/E should scrutinize bank accounts for suspicious activites: (A) large deposits, (B) funds transferred from one account into another, (C) frequent requests for withdrawals.

<><> Bank records might also show diversions to secret LLC other accounts, to operate personal businesses. Govt fraud can also be facilitated by withdrawals, gift cards purchases, credit card purchases and intrabank transfers from govt accounts into personal accounts.

<><> A huge tipoff is whether bank withdrawals support luxurious lifestyle including payments for real estate, investment and stock holdings, jewelry, luxury vehicles, resort travel and gifts from luxury outlets for wives and mistresses.

Taxpayers should demand the Bank Secrecy Act be used to prosecute this crook for govt fraud pronto.

19 posted on 07/23/2013 10:02:54 AM PDT by Liz
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To: MoochPooch
The automobile is no longer viable? People are driving more cars more miles than ever before. And these cars are all made or assembled in America. Boston and San Francisco suffered white flight but now are going through gentrification. Detroit not so much. As far industry goes the only thing replacing manufacturing in Boston and San Francisco is health-care and higher education. Neither of those fields have replicated manufacturing tax income. Yeah, they cleaned up the boarded up buildings and provide jobs and housing. But the tax drug the over unionized cities crave is not being produced at the old levels.
20 posted on 07/23/2013 10:09:04 AM PDT by outpostinmass2
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To: Poundstone

In the Carboniferous Epoch we were promised abundance for all,
By robbing selected Peter to pay for collective Paul;
But, though we had plenty of money, there was nothing our money could buy,
And the Gods of the Copybook Headings said: “If you don’t work you die.”


21 posted on 07/23/2013 10:17:32 AM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: cripplecreek
Economics are like basic physics. The laws simply don’t change.

That is exactly right. The law of 'supply and demand' always wins over time.

I believe it was Coolidge who said, "An economist is someone who observes reality and then tries to find a theory to fit."

22 posted on 07/23/2013 10:20:19 AM PDT by Parmy
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To: Parmy

That sounds like a Coolidge statement.

He’s the patron saint of tea partiers in my book.


23 posted on 07/23/2013 10:22:34 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Kartographer
“Our great cities Obituaries will read Suicide by drowning in debt.”

Should Read -— Our great cities Obituaries should read Serial Murder(s) caused by DemocRats/LIBERALS drowning them in debt.

24 posted on 07/23/2013 10:24:13 AM PDT by SandRat (Duty - Honor - Country! What else needs said?)
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To: outpostinmass2

Certainly cars are still popular. However, the auto industry in Detroit was weakened by Japanese & other foreign imports. Boston & SF are being gentrified partly because of Silicon Valley types. There is nothing — as far as I see — that would bring back affluent whites to Detroit. My cousin, who was born in Detroit (now a stockbroker in Chicago), saw long ago a dying city & left.

Again, if Detroit could somehow reinvent itself. But given its demographic, I just don’t know.


25 posted on 07/23/2013 10:37:06 AM PDT by MoochPooch (I'm a compassionate cynic.)
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To: LibLieSlayer
nope... can’t find a givadamn anywhere.

It'll turn up when they double your Fed taxes to pay for all these bailouts.


26 posted on 07/23/2013 11:07:56 AM PDT by Buckeye McFrog
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To: Buckeye McFrog

Close to going Galt here... they are driving me out of business... after 40 years.


27 posted on 07/23/2013 11:15:13 AM PDT by LibLieSlayer (FROM MY COLD, DEAD HANDS!)
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To: Liz
NORMALLY A CELEBRATORY EVENT, this year’s inauguration of Lawrence city council and school committee members is somber, almost funereal.

Father Paul O’Brien, the pastor at St. Patrick’s church in South Lawrence, takes to the podium at Lawrence High to deliver a prayer. “We live in a community that’s not safe. We all know that,”he says.

A tall, imposing figure in his black clerical garb, O’Brien swivels his head to the right, looking at the elected officials seated nearby — a group that includes Mayor William Lantigua. “Let us pray for those who serve in public safety. And for our elected officials, that they understand better that they must step away from corruption.”

On the night of the election, which Lantigua won with 54 percent of the vote, Luis Medina, a campaign volunteer who was born in the Dominican Republic and grew up in Lawrence, was among the throng of Lantigua supporters at his headquarters on Essex Street. When word spread that Lantigua had won, “it was a joyful moment,” says Medina, 44, a union electrician who works in Boston. “Some were crying. The rest were jumping up and down.”

But the honeymoon was short. Lantigua immediately generated controversy by trying to keep his job as a state representative while serving as mayor. He also feuded with the fire and police departments, the disagreements becoming acrimonious and personal and culminating in a claim that police officers had actually tried to run him down in an unmarked car.

Two years into his first term as mayor, Lantigua has been the subject of four voter recall attempts, and is the target of a federal probe into campaign-finance improprieties.

Lawrence, Mass - City of the Damned

28 posted on 07/23/2013 11:58:47 AM PDT by Madame Dufarge
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To: Madame Dufarge
Lawrence, Mass - City of the Damned --- these were once bucolic American enclaves. Now they are third World slums governed by corrupt latinos who have a visceral hatred for American values.

He's DOMINICAN FIRST---AMERICAN LAST---Mayor Lantigua has been the subject of four voter recall attempts, and is the target of a federal probe into campaign-finance improprieties.....with his corrupt fingers in every kind of govt fraud.

What would Fr O'brien say if he knew a crook like Latingua is protected by the reform bill.....Latingua would walk free if the immigration reform bill were to pass....w/ its self-serving provision to protect from prosecution corrupt latinos elected and appointed to US govt positions?

29 posted on 07/23/2013 5:55:22 PM PDT by Liz
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To: Madame Dufarge
FYI....Dominican Republic connection.

Mexican currency brokers charged in Miami with laundering millions through check-cashing businesses
The Miami Herald ^ | 3/19/13 | Jay Weaver / FR Posted by ruralvoter

The cargo and commercial flights carried millions of U.S. greenbacks in suitcases, containers and money bags from Mexico to Texas, and then to Miami International Airport, on a routine schedule. From there, authorities say, the money was laundered by two Mexican businessmen through a Miami-Dade check-cashing company that used the dollars to cash the payroll checks of undocumented workers at local supermarkets.

It was all part of a Mexican-Miami bulk-cash network that federal agents say may be funded by drug profits south of the U.S. border. On Tuesday, Martin Diaz and Enrique Guerra, arrested earlier this month, appeared before a federal magistrate on charges of conspiring to launder U.S. dollars to “harbor illegal aliens’’ in this country. (Excerpt) Read more at miamiherald.com ...

============================================

Mmmmmmm....that sounds familiar------ cargo flights carried millions of US greenbacks in suitcases, cargo containers and money bags from Mexico to Texas, and then to Miami Intl Airport, on a routine schedule.

From there, authorities say, the money was laundered by two Mexican businessmen through a Miami-Dade check-cashing company that used the dollars to cash the payroll checks of undocumented workers at local supermarkets.

It was all part of a Mexican- Miami bulk-cash network that federal agents say may be funded by drug profits south of the US border. The culprits-- Martin Diaz and Enrique Guerra, arrested earlier this month, appeared before a federal magistrate on charges of conspiring to launder US dollars for the purpose of “harboring illegal aliens’’ in this country. (Excerpt) Read more at miamiherald.com ...

===============================================

REFERENCE It was recently revealed that US Senator Robert Menendez (Democrat-NJ)---using US govt authority and resources---moved to discourage plans by the United States government to donate port security equipment to the Dominican Republic to detect drug cargo.

Menendez cited concern that the advanced screening gear might undermine efforts by a private company — a company run by Menendez's major campaign contributor---a friend w/ dual residences in Miami and the Dominican Republic.

Menendez's intervention with the Department of Homeland Security came even though Mr. Menendez has publicly chastised the Obama administration for not doing more to combat the surging drug traffic moving through Dominican ports.

And it came shortly after the senator’s Miami friend, Dr. Salomon E. Melgen, arranged to meet with a senior State Dept official, accompanied by a former aide to Mr. Menendez........in a related push to protect his company's port security contract, which is worth as much as $500 million over 20 years.

News reports also revealed the Dominican govt was meddling in US affairs---trying to save Menendez's Senate seat from the dreaded Christie appointment. Obama stands ready to write the Dominican foreign aid check----just has to ink in all the zeros.

30 posted on 07/24/2013 11:40:04 AM PDT by Liz
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