Posted on 07/18/2013 1:27:38 PM PDT by tcrlaf
DETROIT (AP) -- Detroit has become the largest city in U.S. history to file for bankruptcy.
State-appointed emergency manager Kevyn Orr on Thursday asked a federal judge permission to place the city into Chapter 9 bankruptcy protection.
(Excerpt) Read more at hosted.ap.org ...
Do the math.
Yes they have income.
But.
Calculate the sum total of retired government workers and workers who will be retiring in the next decade, and extend that out through these people’s expected lifespan. Throw in Federal, State, County, and city. All of them. Everyone drawing a government retirement.
Compare the two.
This is why government was projected (from a 1970s vantage point) to collapse down the road. Well, now we are pretty much there and natural lifespans are longer than at the time this was calculated.
There is no simple solution. We have more employees than we can afford. A lot of jobs that used to be staffed for a few years with people who felt they were doing a service have become lifelong careers. The cost for the change wasn’t paid up front. We now have byzantine regulatory agencies that employ an army of paper shufflers..
You look at how many people work for the government per producing taxpayer now, and compare that to forty years ago.
Pollyanna denial isn’t going to make this go away.
Just as the same sort of Pollyanna denial didn’t stop the entirely predictable real estate bubble burst.
Wanna bet?
Just saw an article that NJ is sitting on millions....and the EUA recently donated millions to Sandy.....so there’s no reason for them not to clean things up...except they have no desire or they’re using it otherwise...or both.
Christy said some of it is going to the schools to upgrade their technology.
That’s 1 for Meredith Whitney. Her mistake was in not understanding that trillions of Bernanke bucks would be splashed into the big city slush funds. Many more to come. Welcome to Ar-hen-ti-na.
companies and productive people are pouring out of CA - public pension obligations and public spending is bankrupting cities counties and the state. Pretending everything is fine because one industry is still there - for now - is a banana republic delusion. Just trying taxing those companies enough to cover that hole and see what happens. Remember what Amazon did?
And the Shale oil will NOT be explored. Are you kidding me...Not going to happen.
I lived in SoCal....born and raised there.
The state is doomed....and the next "immigration bill" will finish the state.
Enjoy it while you can...........
Detroit is CA future....because it's run by Democrat Socialist Marxist's...........They ruin everything they touch!
There's always the The Trillion Dollar Coin.
You can almost hear how breathlessly excited this d-bag Weisenthal was.
“....My money would be on Baltimore, but it is close enough to DC to be able to have a life line from there....”
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Baltimore itself probably won’t go bankrupt for a very long time. The radical progressive wing of the Democrat party is firmly entrenched in power at the state level (and increasing its hold on power as time goes on) and will use the financial resources of the entire state to keep the Democrat areas afloat despite their massive spending problems.
I guess its possible that the entire state will go bankrupt at some point. Much of its “wealth” comes from feeding from the federal public trough (both federal employees & contractors). The best things that other states can do is keep the lid on federal paychecks (keep the freeze going indefinitely on this overpaid crowd) and try to gradually reduce staffing levels. Believe me, there is a great deal of pure fat in the federal bureaucracies.
A Democrat-created disaster, 60 years in the making, and nothing will be learned.
Thank you LSM!™
The key is to get out before the tipping point.
High tech keeps Massachusetts alive. Once the tech sector goes, we'll be gone.
I dunno. To deal with that freakshow, he has to have the patience of a saint.
But deep down, you know the Democrats can do it.
You have to admit that the coin part was a stroke of genius.
We all know that paper money can be worthless, but a coin? Maybe, just maybe, if we all hope really hard...
And you studied Aristotle. Tsk-tsk.
Detroit gonna be ruled by a caliph.
I would have to agree 100%. Keep the areas with Ford Field, Comerica Park and Joe Louis Arena as Detriot and all the surrounding suburban residential areas become their own towns/cities.
Do Not Invest in Muni-Bonds of any city, county, or any other geographical entity with a >40% minority population.
I will just leave it at that.
lots of vegetable farming in the central valley, and aerospace manufacturing.
With the sequester effecting FY funding, the aerospace manufacturing sector is in a severe downturn. Contracts are not being awarded readily. With the EPA withholding irrigation waters...the CA central farming sector has been in a severe recession for 2.5 years. Unemployment and welfare recipients are UP in the central valley.
“Municipal bonds Ted, I’m talking double A rating. . . the best investment in America.”
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