Hamtramck seeks state permission to file for bankruptcy (it begins)

Zero Hedge ^ | 11/13/2010 | Mika Wilkerson and Paul Eagan

[frithguild]

The city of Hamtramck, desperate for cash, has asked the state for permission to take an unprecedented step: filing for bankruptcy. City Manager Bill Cooper said the city of roughly 20,000 people is staring at a $3 million deficit, fueled by a dispute with Detroit. Unless Hamtramck files for bankruptcy, it won't be able to pay its nearly 100 employees or 153 retirees, he said.

[frithguild]

AMBAC insures municipal bonds and has filed for bankruptcy

[gthog61]

Well it’s obvious they screwed up somewhere in the past by having more retirees than active employees.

[mamelukesabre]

not necessarily...could be it’s just a dying city, shrinking population.

[brownsfan]

A muslim dominanted dying city.

[ncfool]

Is this allowed under shariaia law

[backwoods-engineer]

Hamtramck used to be the largest population of Poles outside of Poland (hence its Polish name). Bet it’s more Muzzie than Polish now.

[5thGenTexan]

Anyone have the data on the political affiliations of the city government over the last, say, 50 years?

Will the RNC take advantage of an opportunity for a "teachable moment"?

[frithguild]

Get used to Municipal bankruptcy news. It wll put pressure on states, which will then seek federal aid. Challenge for the next Congress.

[WhyisaTexasgirlinPA]

I believe the article says Detroit is supposed to be paying them a share of GM revenue and they have had to sue Detroit for not paying them. Part of the problem is probably what you stated, but this could be a good portion as well.

[The Comedian]

Soylent Green is Mantramck!

Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

[WhoHuhWhat]

This is the city that Pope John Paul II visited. Now Islamic calls to prayer blare from speakers in the town.

No surprise that there was a bit of flight.

[upchuck]

Oh, this is in Michigan. Why didn’t you say so?

[MaggieCarta]

This is the city that Pope John Paul II visited.

:) That was back in the late 80's. I remember one T-shirt: "I went to Rome to visit the Pope, but, he was in Hamtramck."

Now Islamic calls to prayer blare from speakers in the town. No surprise that there was a bit of flight.

Um...no. I would argue that the flight started in the late 70's when the old Dodge Main plant closed. Or, perhaps, in 1980 when GM built their Poletown plant which took out more than a thousand homes and over 100 businesses.

Of course, I could be wrong.

[sharkhawk]

100 employees and 153 retirees. Does anyone else see the problem with this.

[MaggieCarta]

From the Article: Under a 1990 law, only an emergency financial manager appointed by the state can take a city into bankruptcy... No Michigan municipality has declared bankruptcy before or since the law was passed...

I don't think there is anyone appointed yet.

[MaggieCarta]

100 employees and 153 retirees. Does anyone else see the problem with this.

Just a little foretaste of the Social Security system...

[aces]

Let it rot, I am not interested in spending my grandchildrens future for them, let it all fall, gut the federal mgovernment, dissolve all taxes, starve the friggin beast, let the roads go for a few years, out of debt plan in 1 year..sell parks, whatever it takes, but do not allow government to rob the people to pay for their terrible choices, make the governmemnt pay by cutting departments etc..

[aces]

Sens them back to their hellhole of choice..

[Wissa]

100 employees and 153 retirees. Does anyone else see the problem with this.

They need to hire more employees to balance things out?

I'm not sure how that would help their budget situation.

[mamelukesabre]

You got my vote!