Skip to comments.Detroit bankruptcy raises concerns about other US cites under huge retiree debt
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 Moodys 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 ...
Economics are like basic physics. The laws simply don’t change.
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.
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
Haven’t all those been under liberal governance for decades?
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.
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.
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.
You mean like Boston, Springfield, Lowell, and Lawrence, MA? There’s a storm comin’...
Let me check... looking hard... still looking... nope... can’t find a givadamn anywhere.
LibLieSlayer you are so careless, what do I have to do sew it inside your jacket? ;-)
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.)
:-) I reckon so!
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.
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!
Thank God I get a Federal pension, not a state or municipal one.
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.
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.”
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."
That sounds like a Coolidge statement.
He’s the patron saint of tea partiers in my book.
Should Read -— Our great cities Obituaries should read Serial Murder(s) caused by DemocRats/LIBERALS drowning them in debt.
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.
Close to going Galt here... they are driving me out of business... after 40 years.
Father Paul OBrien, the pastor at St. Patricks church in South Lawrence, takes to the podium at Lawrence High to deliver a prayer. We live in a community thats not safe. We all know that,he says.
A tall, imposing figure in his black clerical garb, OBrien 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.
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?
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 senators 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.