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Unions ask Obama for Detroit bailout
The Hill ^ | July 26, 2013 | Megan R. Wilson

Posted on 07/26/2013 9:25:06 AM PDT by jazusamo

Union leaders are calling on Congress and President Obama to provide a federal bailout to the city of Detroit.

The executive council of the AFL-CIO, the nation’s largest labor federation, called for an “immediate infusion of federal assistance for Detroit” to be matched by the State of Michigan, which they say has not done enough to keep the city from going through bankruptcy.

“Bankruptcy must not be used as a tool to impoverish City of Detroit workers or retirees. City workers have already made severe concessions to keep the city afloat,” the executive council said in a statement. “They are not to blame for Detroit’s financial problems, yet they have been making sacrifices all along the way to help the city out.”

The executive council, which consists of more than 50 leaders from various organized labor groups, are angry about pensions for retired workers facing suspension if Detroit goes through Chapter 6 bankruptcy.

“It appears that Governor [Rick] Snyder and [Emergency Financial Manager] Kevyn Orr are pushing Detroit into bankruptcy to gut the modest benefits received by Detroit’s retired public service employees,” the AFL-CIO’s statement reads.

Snyder appointed the emergency financial manager in March to try and help the Motor City sort out its finances.

The governor has come under fire for hiring a Washington bankruptcy attorney, which the AFL-CIO said shows bankruptcy was his plan all along.

“Mr. Orr’s decision to file for bankruptcy can be taken as confirmation that he was hired, secretly and ahead of a declared financial emergency, because he is a bankruptcy expert,” the organization writes.

Orr represented Chrysler during the car company’s 2009 bankruptcy and restructuring.

Snyder said on Sunday that he can “empathize” with the city’s retirees, but said the decision to go into bankruptcy had to be made, given the city’s financial state.

He noted that, due to cutbacks, most of the city’s street lights no longer work and police often take up to an hour to respond to calls.

“There were no other viable options,” Snyder said on NBC’s “Meet the Press.”

Earlier this week, Detroit Mayor Dave Bing said he had been receiving “great support” from the White House, but that it would be difficult to ask for direct assistance.

“They have been helpful, but now that we've done our bankruptcy filing, I think we've got to take a step back and see what's next,” he said on ABC’s “This Week. “I'm not sure exactly what to ask for. I mean, money is going help, no doubt about that, but how much?”

Members of Congress have rejected the calls to bailout the city.

On Thursday, Sen. John Cornyn (R-Texas) filed an amendment to appropriations legislation that would ban the federal government bailing out financially troubled cities.

“There's no good reason why Detroit or any other American city ought to receive a taxpayer-funded bailout from Washington," Cornyn said. "I hope that the normal bankruptcy process will be allowed to go forward, and I hope that the bankruptcy follows the rule of law, and the Obama Administration resists any temptation to meddle in the process and play politics."

Detroit would be about $600 million in the red this year, if it hadn’t pulled out loans to finance the deficit.

Orr said in his earlier report about the city’s finances that it had “exhausted” its ability to borrow anymore and will finish out the current budget year with a $162 million cash-flow shortfall.

Detroit's bankruptcy would be the largest for a municipality in U.S. history.


TOPICS: Crime/Corruption; Culture/Society; Government; News/Current Events; US: Michigan
KEYWORDS: aflcio; bailout; detroit; pensions; unions
Cry us a river. Unions are one of the reasons Detroit is where it's at now.

Trumka and his AFL-CIO along with other unions should bail out the city with the hundreds of millions in their Democrat political fund.

1 posted on 07/26/2013 9:25:06 AM PDT by jazusamo
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To: jazusamo

What took so long?


2 posted on 07/26/2013 9:26:32 AM PDT by SMARTY ("The test of every religious, political, or educational system is the man that it forms." H. Amiel)
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To: jazusamo

Well, that was unexpected.


3 posted on 07/26/2013 9:27:57 AM PDT by Billthedrill
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To: Springman; cyclotic; netmilsmom; RatsDawg; PGalt; FreedomHammer; queenkathy; madison10; ...
No way. They're going to have to be forced to deal.

Image Hosted by ImageShack.us

Michigan legislative action thread
4 posted on 07/26/2013 9:29:35 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: SMARTY

Some backdoor Federal bailout of Detroit is inevitable IMO.
Public sector unions are just too valuable to the Dems as a money laundering operation. Not to mention the AFL-CIO may beat us to the third-party punch if things don’t start going their way soon.

Look for a steady string of media sob stories about retired Detroit police and firefighters eating dog food to commence.


5 posted on 07/26/2013 9:30:29 AM PDT by Buckeye McFrog
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To: jazusamo

They really need a bailout... should not be pitting their profligate spending habits over impoverished horse-shoe laborers...


6 posted on 07/26/2013 9:30:32 AM PDT by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: jazusamo

They are asking for a bailout for themselves, not Detroit. By their attitudes they prove they don’t give a rip about Detroit.


7 posted on 07/26/2013 9:30:49 AM PDT by DManA
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To: jazusamo

Someone please explain to me why my federal tax dollars should be used to bail out one of the most corrupt city’s in the country? If you live in Detroit and you care about your city, maybe you need to pay closer attention to who you vote into office. For those of us in the other 49 states...not our problem. Your leaders dug this hole and put you in it. It’s up to them to fix it...not the rest of us.


8 posted on 07/26/2013 9:31:10 AM PDT by econjack (I'm not bossy...I just know what you should be doing.)
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To: jazusamo

Say buddy, can you spare a massive cash infusion so a guy can get a, uh, something to eat?

Maggie Thatcher warned us about money and running out, etc. This would be cash pounded down a rathole. And Zero knows it.


9 posted on 07/26/2013 9:31:35 AM PDT by tumblindice (America's founding fathers: All armed conservatives.)
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To: jazusamo

Twenty-thousand retired and ten-thousand employed plus all the other non-Detroit unions probably equal 100,000 votes. They will probably get something. A direct bailout won’t work, it will be hidden in other 10,000 page bills way down in the fine print. It may be a medical subsidy or a tax write-off or special grants, it won’t be called a bailout.

Republicans must be vigilant, but even so, throw enough sh*t at the wall some of it is bound to stick.


10 posted on 07/26/2013 9:32:45 AM PDT by Gen.Blather
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To: jazusamo

In 2009 - 2010, the federal government bailed-out California and other states out using back door medicaid reimbursement schemes. I am sure that if the bail-out was 50% fed and 50% state for Detroit, back-door funding channels would mean 100% bail out by the feds.


11 posted on 07/26/2013 9:33:23 AM PDT by 11th Commandment (http://www.thirty-thousand.org/)
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To: jazusamo

If they start bailing out bankrupt cities, that is a slippery slope that has no end.

Some 200 cities are in dire financial condition, similar to Detroit. Probably, hundreds of other cities and towns have financial problems, too.

If the FED ever started bailing them out, hundreds of cities and towns would jump on that bailout wagon and want their ‘fair’ share.

==

Let Detroit take care of itself. It got itself in that predicament. It didn’t happen overnight. It took years. Let those politicians ‘fiscally’ responsible assume the liability.


12 posted on 07/26/2013 9:33:59 AM PDT by TomGuy (.)
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To: DManA

If we had a real department of justice that was actually interested in enforcing the law, the FBI would be down there seizing the records of the city council and the unions.

That’s really what it will take on the government end.


13 posted on 07/26/2013 9:34:13 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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Please bump the Freepathon or click above and donate or become a monthly donor!

14 posted on 07/26/2013 9:34:45 AM PDT by jazusamo ("I am so old that I can remember when most of the people promoting race hate were white." T. Sowell)
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To: jazusamo
Chutzpah to the max.
15 posted on 07/26/2013 9:34:59 AM PDT by JPG (Obama Does Egypt.)
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To: Buckeye McFrog

“Look for a steady string of media sob stories about retired Detroit police and firefighters eating dog food...”

I haven’t seen any yet, and that’s the first thing I thought they’d foist onto center stage, here.

Detroit is now a war zone. Maybe “O” needs to declare it an open city and send the guard.

If he has to ‘nationalize’ the infrastructure, so be it.


16 posted on 07/26/2013 9:35:10 AM PDT by SMARTY ("The test of every religious, political, or educational system is the man that it forms." H. Amiel)
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To: jazusamo

Not a bailout.

A Detroit stimulus.

That last ~1T$ stimulus really revved up the US economy.

Clearly we need to throw money at Detroit as well.

Debt is obviously not a problem anymore.

And I have a bridge for sale, cheap.


17 posted on 07/26/2013 9:35:14 AM PDT by ltc8k6
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To: jazusamo

There WILL BE A BAILOUT but it will come from 0bama’s stash in a stealthy UNtransparent way.


18 posted on 07/26/2013 9:35:33 AM PDT by shove_it (long ago Orwell and Rand warned us about 0bama's America)
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To: jazusamo

I suspect that Obama is really leaning toward this. His pals Jay Z and Beyonce are pushing it too.


19 posted on 07/26/2013 9:35:38 AM PDT by BunnySlippers (I LOVE BULL MARKETS . . .)
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To: jazusamo

The only surprise here is that it took them almost a week to ask for the bailout.


20 posted on 07/26/2013 9:36:19 AM PDT by 0.E.O
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To: econjack

Amen to that. Corruption in Detroit and their unions is a primary reason and the rest of the country should not pay for it.


21 posted on 07/26/2013 9:37:48 AM PDT by jazusamo ("I am so old that I can remember when most of the people promoting race hate were white." T. Sowell)
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To: SMARTY
“Look for a steady string of media sob stories about retired Detroit police and firefighters eating dog food...” I haven’t seen any yet

ABC News ran one last night.


22 posted on 07/26/2013 9:39:16 AM PDT by Buckeye McFrog
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To: TomGuy

Pat Robertson’s idea for an International Year of Jubilee sounds less and less wacky with every passing year.


23 posted on 07/26/2013 9:40:13 AM PDT by Buckeye McFrog
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To: jazusamo
Here's the punchline to the joke (from the article):

"“It appears that Governor [Rick] Snyder and [Emergency Financial Manager] Kevyn Orr are pushing Detroit into bankruptcy to gut the modest benefits received by Detroit’s retired public service employees,” the AFL-CIO’s statement reads.

24 posted on 07/26/2013 9:43:08 AM PDT by shove_it (long ago Orwell and Rand warned us about 0bama's America)
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To: jazusamo

Detroit has already gotten their bailout with the auto fiasco


25 posted on 07/26/2013 9:43:58 AM PDT by yldstrk (My heroes have always been cowboys)
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To: shove_it
You nailed it. I wonder why the AFL-CIO didn't publish just what those modest benefits are. Pathetic.
26 posted on 07/26/2013 9:46:18 AM PDT by jazusamo ("I am so old that I can remember when most of the people promoting race hate were white." T. Sowell)
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To: jazusamo

“Corruption in Detroit and their unions”

California truckling to the “undocumented immigrant” lobby: same thing.
Any municipality, for that matter, that can’t handle its own financial matters (or national gooberment FTM) is just going to have to suffer the indignity and inconvenience and pain of bankruptcy.
Of course Barrack Clause having usurped the power of the purse from the Congress feels differently.


27 posted on 07/26/2013 9:48:06 AM PDT by tumblindice (America's founding fathers: All armed conservatives.)
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To: jazusamo

Does anyone really believe it won’t end up happening?


28 posted on 07/26/2013 9:55:25 AM PDT by cdcdawg (Be seeing you...)
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To: Buckeye McFrog
Some backdoor Federal bailout of Detroit is inevitable IMO.

Which will open the door to federal bail outs for the hundreds of other cities teetering on the brink of bankruptcy.

If Obama goes there, he will be declaring war on half the country, and they will respond in kind.

29 posted on 07/26/2013 10:12:05 AM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: TomGuy

You forgot several states..Illinois, California among others..


30 posted on 07/26/2013 10:13:50 AM PDT by ken5050 (Due to all the WH scandals, MSNBC is changing its slogan from "Lean Forward" to "BOHICA")
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To: jazusamo

now it’s michigan’s fault detroit failed. republican governor at the helm currently. nothing about granholm presiding while it continued to tank.

liberals are such juveniles. everything bad is everyone else’s fault, anything they consider good they can’t take credit for fast enough.


31 posted on 07/26/2013 10:21:12 AM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: econjack

it’s not even the state’s’fault, it’s the people of detroit that have allowed this to occur the last 52 years.


32 posted on 07/26/2013 10:23:02 AM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: jazusamo
A bailout for the City of Detroit? Great idea! I'm all for it as long as the AFL-CIO is footing 100% of the bill for it.

My interest in any such proposal, however, is inversely proportional to the amount of public money required for implementation.

After all...the taxpayer has done everything it can do for Detroit. It's time for the AFL-CIO to step up and meet its responsibilities.
33 posted on 07/26/2013 10:26:41 AM PDT by Milton Miteybad (I am Jim Thompson. {Really.})
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To: jazusamo

Pure Detroit
http://youtu.be/l4ZQooPHHAA
And you can find out more at barak obama . com


34 posted on 07/26/2013 10:37:38 AM PDT by sunny48
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To: Windflier
Which will open the door to federal bail outs for the hundreds of other cities teetering on the brink of bankruptcy.

That was the plan. Implicitly promised in his '12 campaign. If had been able to roll the Pubbies on the sequester it would be happening today.


35 posted on 07/26/2013 11:15:28 AM PDT by Buckeye McFrog
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To: Secret Agent Man
it’s not even the state’s’fault, it’s the people of detroit that have allowed this to occur the last 52 years.

Exactly what I said, too.

36 posted on 07/26/2013 11:31:33 AM PDT by econjack (I'm not bossy...I just know what you should be doing.)
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To: TomGuy

“If they start bailing out bankrupt cities, that is a slippery slope that has no end.

Some 200 cities are in dire financial condition, similar to Detroit. Probably, hundreds of other cities and towns have financial problems, too.

If the FED ever started bailing them out, hundreds of cities and towns would jump on that bailout wagon and want their ‘fair’ share.”

Exactly. Why didn’t the unions ask for bailouts for Stockton and San Bernardino?

CC


37 posted on 07/26/2013 11:53:08 AM PDT by Captain Compassion
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To: jazusamo

Anyone surprised?

The allure of OPM is just too strong for greedy liberals.


38 posted on 07/26/2013 11:56:19 AM PDT by GeronL
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To: jazusamo

We ALL KNOW why Detroit is a mess. There is ONE KEY REASON. But nobody wants to state the obvious for fear of being called a racist.

All I will say here is that first-world, Christian, FREE MARKET Western culture works. Third-world, socialist, anything goes culture does not.


39 posted on 07/26/2013 2:08:33 PM PDT by GodAndCountryFirst
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To: jazusamo

Unions and Democrats are the ONLY reasons that city is in bankruptcy.

Not my money AFL/CIO


40 posted on 07/26/2013 2:10:05 PM PDT by ThomasMore (Islam is the Whore of Babylon!)
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To: jazusamo

I was going to post something about a neutron bomb but I decided not to....


41 posted on 07/26/2013 2:13:07 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: shove_it
"There WILL BE A BAILOUT but it will come from 0bama’s stash in a stealthy UNtransparent way.

Despite the frequency with which the unions reached into their back pockets to shake comrade obama's hand, they always failed to notice that for every dollar he shoved in there he pulled two out. It was called "quantitative easing" and it turned out to be a clever way to steal from everyone.
42 posted on 07/26/2013 11:06:10 PM PDT by clearcarbon
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