Posted on 12/03/2013 3:41:13 PM PST by Brad from Tennessee
DETROIT — Detroit is eligible to shed billions in debt in the largest public bankruptcy ever in the United States, a federal judge ruled Tuesday, while also finding that the public pensions could be reduced during reorganization despite a provision in Michigan’s Constitution.
In ruling that Detroit was eligible to reorganize under federal bankruptcy law, Judge Steven W. Rhodes said the city met every test of insolvency, including failing to pay its debts and being unable to provide a minimum level of basic services to its 680,000 residents.
“This once proud and prosperous city can’t pay its debts,” the judge said. “It’s insolvent. It’s eligible for bankruptcy. But it also has an opportunity for a fresh start.”
Appeals were expected to be filed quickly. Bruce Babiarz, a spokesman for Detroit’s fire and police retirement system, which supports 8,500 retirees, said lawyers were reviewing the ruling and expected to file an appeal by the end of the week. But the case will continue to move forward, with the next step being the city filing a “plan of adjustment.” It is unclear, however, what portions of the judge’s ruling may be appealed.
Under the ruling, the vastly diminished city, once the nation’s fourth largest and the cradle of the American auto industry, will be allowed to search for a way to pay off some portion of its debts and to restore essential services to tolerable levels under court supervision. The goal, according to Kevyn Orr, an emergency manager appointed by the state of Michigan, is to emerge from court protection next year with a formal plan for starting over. . .
(Excerpt) Read more at nytimes.com ...
Seems to me that this is REALLY big news. I think this will be the first domino to fall, and now there’ll be a whole lot of cities, counties, and States to follow. I would be running to hide in the hills if I lived in Detroit. It is going to get real bad, real soon.
Indeed,
but Moroun STILL has a few dedicated shills and panty-huffers out there, including one or two on this site.
I shall call this city....Reaganville.
“I think this will be the first domino to fall, and now there’ll be a whole lot of cities, counties, and States to follow.”
Now there is “precedent,” there will be a lot more of them. Nobody really wanted to be first, now my bet is that nobody wants to be last, because the available “pot” will be shrinking quickly. What I want to see is what it ends up doing to PE unions.
As long as Dems are in control of the fedgov, don’t expect much bad to happen to one of their primary funding sources (PE unions).
I really think Maroun would let the Ambassador bridge fall into the river if he thought there was a buck to be made off it.
That brings me to the point of why thinking conservatives are looking for ways of fixing Detroit instead of the usual reactionary lip flapping. Its the second busiest freight crossing on the continent and its probably going to take the top slot when the new bridge is built. Only a moron would sit back and let the democrats remain in control of it.
If you put good free market conservatism back in control of the city and it will boom. The big players are moving into Detroit but they aren’t a stable economic base the way small business is.
Their was a serious proposal to buy Belle Isle from the City and make it a tax free haven and make it a territory with an entry price of 300 large, and exemptions for artist etc. The drawings were incredible, I would have called it Galtland or Galtville. Every cutting edge libertarian leaning entrepreneur in the US world would have flocked their. But RINO Governor Snyder couldn't have that, nor the Canadians, to much focus on what they are doing wrong...
There must be something good there. What about museums, the zoo and other attractions? Oh, they used to be free but now have expensive entry fees with little value. Lots of restaurants? Oh, expensive menus, restrictions on take-out packaging with high fees. Then there's the lack of parking, which has extremely expensive parking meters and overzealous enforcement with expensive traffic tickets, neighborhood parking permits gone wild with street-cleaning forcing one to constantly move your car. Restrictions on building permits, rent-controls unfavorable to owners. And high property taxes and utility fees to cover things you do not support (like transgender operations etc.). There must be some good reason to move back to the city...
Yeah, the Detroit Tigers, although the way they got rid of Doug Fister makes me wonder if that was part of the bankruptcy settlement. Congratulations Washington Nationals...you got a great pitcher for almost nothing...
In my planned opening offer, they were going to have to pay me about that amount to take it.
Detroit’s bankruptcy ruling clears the deck for Chicago’s. Chicago is in the same boat as Detroit, except not as far along. There are a lot of folks in this state that want to see these greedy public employee unions get theirs after the repeated financial rape of the taxpayers.
LOL!!!!
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