Skip to comments.Detroit emergency manager: We’re flat broke and can’t borrow any more
Posted on 05/13/2013 5:01:16 PM PDT by SeekAndFindEdited on 05/13/2013 5:05:53 PM PDT by Admin Moderator. [history]
Emergency Manager Kevyn Orr says the city of Detroitâ€™s cash-flow crisis makes it â€śinsolventâ€ť and unable to borrow more money to mask over debts being made worse by skipping millions in payments for retiree pensions and health care.
After 45 days on the job, Orrâ€™s initial assessment of Detroitâ€™s perilous finances is laid bare in a 41-page report to be delivered today to state Treasurer Andy Dillon.
(Excerpt) Read more at hotair.com ...
Timmmmberrrrr everbody out of the way !
Quite amazing, actually. Dude wrote almost a page a day.
obama actually loves this.’detroit will be the first city taken over by martial law, it will be obama’s testbed for the rest of the country.
Bulldoze every square inch.Turn it into a museum displaying the evils of Marxist unions and politicians.
50 years of Democrats in control of the city and this is what you get. They have finally run out of other people’s money. You can’t run a city when the majority of its population are on welfare and expect it to go on forever. And, I was born there.
What are we going to do when ALL the property tax revenues and local sales taxes go to PAY THE PENSIONS OF RETIRED “PUBLIC” EMPLOYEES??
I’ve read lately about a couple of cities where THEY ADMIT they spend more money on retired LE than they do for the current police force!
It’s coming. It’s just a matter of time. Will retired public employees be another part (along with the SNAP people and SS recipients) who are the main parts of the zombie hoards?
Now I know their are also a number of pensions, with the police dept being the most solvent, but they are all underfunded badly.
Call your unions and your democrat leaders.... they’ll kiss your boo boo and make it feel better.
Results of rule by socialist democrats = Broke and Busted.
No further questions, your Honor.
As I understand Detwaa's situation, even though Orr is trying to find a way to solvency ( the Pensions ) or re-negoiate them, by State Law the ultimate responsibilty for these reside with the State of Michigan. Which is unfair in a way, for 50 years they have been the drunken sailor, and everyone else will potentially get the hangover.
NYC allows cops to retire on half pay after 22 years of service. So somebody starts at 21, retires at 43, and has maybe another 30-40 years of collecting pension payments and health benefits.
We’re Democrats and we’re broke broke broke!
That’s why I say we’ve got to fix it even though we didn’t break it.
Fortunately things are moving in the right direction with a lot of quiet growth.
That is the entire country in a couple decades. Its the end result of the giant Ponzi scheme called the Welfare State. The majority of the population are net takers who expect an ever-dwindling number of "rich" to pay for everything. Eventually the "rich" either flee or collapse under the weight of the burden. And then there are no more suckers to borrow from. So you have a population that is used to screaming "gimme gimme gimme" who no longer has anyone to scream to who will listen. So, like locusts, the population abandons the city and moves on to the next feeding ground where they can vote themselves a government check paid for by "the rich."
Is that a myn or a womyn?
Outside of retired police and firefighters, Detroit has 18,500 retirees currently collecting benefits from their pension plan. Orr is requesting docs from the pension plans, as we speak, because it had been assumed that the pension plans were the bright spot (ie fully funded). It turns out that, using his back of the napkin calculations, they are over $1 billion underfunded and the city will be forced to cough that up on top of what they have been shorting in payments to their own pension funds. There is no way to save it without a massive federal "gift" or bankruptcy. Unfortunately, with the current administration, I wouldn't rule out them dumping it on the taxpayers as a precedent with IL and CA coming up next...
Detroit is another Democrat garbage pile, it’s been that way for 50 years.
Cut-off all of the staff positions on the City Council.
The Socialist Workers seem to think that if Detroit goes into bankruptcy, that the public employees’ pensions could be sacrificed:
So does the Detroit News:
Achtung! You just couldn’t make this stuff up fast enough to beat the Fuhrer; he just went there May 2013 and I quote from CNSNEWS.COM: “Obama said in Michigan that if the federal government does not take more money away from people who have earned it, the public schools may not be able to buy school books.” The Fuhrer has spoken! Whenever the problem is cash, Hussein’s solution is the same: tax, spend, tax, print, tax tax tax and capitalism just fades away leaving a pure socialist paradise.
You’re a genius! I’d buy one of each if they made them: 55Chevy, 57T-bird, 54Corvette, MGB and TR6.
(It's (much) less than perfect given that it was marginal when I bought it 37 years ago and I haven't driven it in 35 years).
Here's Detroits school book depository
When the initial numbers came out months ago of being 18 billion in the red, I think the total pension liabilities were way North of that....
I agree. It kills me to know how many idiots that keep voting democrat after the years of abuse they did to Detroit.
What part of squalor is so attractive that people just love to keep voting for it?
“unable to borrow more money to mask over debts”
Jeesh, when you find yourself in a deep hole, you should stop digging!
From the article: “If all we did was collect taxes and pay our debt, we couldnt pay it off in 20 years. Thats the situation that were in now.”
To wich you posted: “That is the entire country in a couple decades.”
I agree and would like to point out one more thing. If you confiscated ALL of the money in the entire world, that is all money in every currency that currently exists, you would still not be able to pay off the debt of the US.
Looks like they didn’t appreciate the books taxpayers bought them.
That is the most beautiful automobile built in America, post war.