Posted on 07/18/2013 11:17:29 PM PDT by lbryce
DETROIT—The city of Detroit filed for federal bankruptcy protection Thursday after decades of decline, a new low for a city that once defined industrial America's might but was hollowed out by the flight of residents and businesses to the suburbs.
The filing by the automobile capital and onetime music powerhouse—which has liabilities of more than $18 billion—is the country's largest-ever municipal bankruptcy case.
The move to restructure the debt is bound to set off months, if not years, of legal wrangling, asset sales and cuts to benefits for Detroit workers and retirees, including 20,000 on city pensions. Owners of the city's bonds are expected to battle with retirees and others for pieces of the city's diminished wealth
(Excerpt) Read more at online.wsj.com ...
“The only true fix for Detroit and the other coming collapses of other larger cities are Family, Faith, and Free markets.”
In that case, the public employee and the teacher’s unions must DIE, because Detroit is OWNED by them. Nothing good will happen until the unions that strangle Detroit (and restrictions on businesses) are killed. The current political class in Detroit need to be doing hard time behind bars for the institutionalized corruption they have fostered in the city.
So how long before the USA declares bankruptcy? Next year? The year after that? Who’s gonna bail US out?
The unions are dying since the passage of the right to work law but it takes time for contracts to run out and attitudes to change. The big 3 will remain unionized because the companies want it that way but smaller shops that supply them will likely lose their unions.
I usually do mention the forced busing.
“Why not give it to Canada.”
Uh, I’m almost sure Canada would consider that an act of war.
BTW one advantage Detroit has over most large cities is the fact that private sector competition is legal with some public sector city services.
For instance the privately owned Detroit Bus company is growing competition for the city provided service. They’ve got an interesting business plan of no regular routes. They have a phone app to show where the nearest bus is if you want to meet it or you can call the driver directly and have him pick you up at the nearest stop or even at your front door. They can also be chartered to make regular stops.
On one of my trips to Detroit a while back and elderly woman was telling me how much she loves the new bus company. She said they don’t make her struggle down the block with two or three bags of groceries, they take her right to her door and even carry the groceries to the house.
Private neighborhood security companies are on the rise in Detroit as well. They are limited in what they can do but they do help. Now if only fire departments could be handled the same way. Electric and water are going to be opened up to privatization.
“Ya need to talk to “cripplecreek” who IMHO is wired to what is going on behind the scenes. It seems big and smart money is about to buy in low. He will give you the 411 on the Iron Ore and Tar Sands coming to the City via ships, how they will be powered by LPG, Trade and Manufacturing in Canada and a potential Manufacturing back in Detroit with resurgence of a healthy Detroit and how it may become a trading hot spot.... “
Why Detroit? What’s so attractive there? The infrastructure and school systems have crumbled. It’ll probably be paralyzed financially for years. Noting has changed one whit regarding the uneducated, welfare-dependent, violent population that will continue to elect criminals to “run” the city.
Why not just start over from scratch? Bulldoze some big fields and build a new city from scratch. Would be cheaper and more effective in the long run. Or just find a better city in the general vicinity.
My prediction is that anyone who invests significant money in Detroit will lose their shirts.
Thanks Cripplecreek!
BTW, this maybe the revenge of Meredith Whitney and her Muni Bond call, maybe all along she was hinting not at insolvency but the Corruption that is causing it, but it was to Un-PC to say so.
I am seeing on the web that the investigation into Detroit's Pension is on-going and I wonder what Corruption, Theft, and or other ailments they will find, and could this Chapter 9 be a move because a great deal of bad things did happen and they will be a shocker?
Tangent to this, are those 12 cities also in that boat where things have gone on with the pensions that might have some folks in chrome braclets?
Time will tell...
I suspect that misconduct with a teenager wasn’t the only reason city council president Charles Pugh fled from Detroit.
The city council has been on their best behavior recently and I’m betting a criminal crapstorm of investigation is going to break very soon.
I don't have a schadenfruede moment over that, it is actually sad. However, if your hunch it right it might fill Bing-Orr-Snyder's sails full of wind to clean it all up.
Maybe this is why Valerie Jarrett and "da-one" are steering clear, just like they steered clear of Kawame...
If you are right, and the level of corruption is shocking will that then have everyone shocked and then ask, well what about Baltimore, Chicago or insert city name here.....
I live in southern california and im basically waiting for los angeles to go through the same thing. Liberals destroy EVERYTHING they touch.
“Why not give it to Canada.”
The canadians ain’t that dumb.
Everyone knows why Detroit went to hell.
One reason can be openly discussed (the collapse of the local auto industry), the other reason can’t.
There are millions and millions of whites who hate republicans. They hate republicans and can’t give a reason why. It’s scary.
hollowed out by the flight of residents and businesses to the suburbs
HAHAHAHAHAHAHAHA
they blame flight in the first sentence and not what caused the flight... mismanagement of taxes and over regulations... this is the state of things to come for sure.
and the solution will be to ramp up agenda 21 to prevent anyone from leaving the cities.
obama will have to move swiftly on this... look for him to be in charge of the UN after his term and biden as the next ruler of america...
look for a truly international city with saudi building an enormous mosque with a replica of medina...
detroitistan is coming, complete with its own airport
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