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.