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Thread: Detroit files largest municipal bankruptcy in US history

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    Detroit files largest municipal bankruptcy in US history

    http://news.msn.com/us/detroit-files...-in-us-history

    Detroit files largest municipal bankruptcy in US history



    DETROIT– Detroit filed the largest-ever municipal bankruptcy in U.S. history on Thursday, marking a new low for a city that was the cradle of the U.S. automotive industry and setting the stage for a costly court battle with creditors.

    In a letter accompanying the filing, Michigan's Governor Rick Snyder said he had approved a request from Detroit Emergency Manager Kevyn Orr to file for Chapter 9 bankruptcy protection noting, "Detroit simply cannot raise enough revenue to meet its current obligations, and that is a situation that is only projected to get worse absent a bankruptcy filing."

    Snyder, a Republican, named Orr in March to tackle the city's spiraling long-term debt, which is estimated at $18.5 billion.

    Detroit was once synonymous with U.S. manufacturing prowess. Its automotive giants switched production to planes, tanks and munitions during World War Two, earning the city the nickname of the "Arsenal of Democracy."

    Now the city's name has become synonymous with decline, decay and crime. Detroit has seen its population fall to 700,000 from a peak of 1.8 million people in 1950. The city's government has been beset by corruption cases over the years. Waning investment in street lights and emergency services has left it struggling to police the streets.

    The city's murder rate is at its highest in nearly 40 years; only a third of its ambulances were in service in the first quarter of 2013; and its nearly 78,000 abandoned buildings create "additional public safety problems and reduces the quality of life in the city," the governor noted in his letter.

    In June, Orr presented a proposal to creditors offering them pennies on the dollar. His plan had met with resistance from some creditors, most notably Detroit's two pension funds representing retired city workers. The funds recently filed lawsuits in a state court challenging the governor's ability to authorize Orr to file for bankruptcy.

    Creditors are expected to mount a stiff challenge to the bankruptcy, which was filed in the U.S. Bankruptcy Court in the Eastern District of Michigan.

    Douglas Bernstein, a bankruptcy attorney at Plunkett Cooney in the Detroit suburb of Bloomfield Hills, said he expected the case would last one-to-three years and would be very costly.

    "This could run to tens-of-millions to hundreds-of-millions of dollars," he said.

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    A good example of end-stage all-liberal management of a Government.

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    Quote Originally Posted by Churchill View Post
    A good example of end-stage all-liberal management of a Government.
    It really is. But people will not heed the warnings.

    It is a shame things literally have to hit rock bottom before something is done.

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    It is funny, The city workers have already filed a lawsuit to protect their pensions and benefits which they pay next to nothing for. To them uppa ur ass.

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    Quote Originally Posted by Churchill View Post
    A good example of end-stage all-liberal management of a Government.
    Hilarious that somehow Snyder will get the blame for this...

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    http://www.nytimes.com/2013/07/19/us...ruptcy.html?hp


    Detroit expanded at a stunning rate in the first half of the 20th century with the arrival of the automobile industry, and then shrank away in recent decades at a similarly remarkable pace. A city of 1.8 million in 1950, it is now home to 700,000 people, as well as to tens of thousands of abandoned buildings, vacant lots and unlit streets.

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    Quote Originally Posted by DDNYjets View Post
    It really is. But people will not heed the warnings.

    It is a shame things literally have to hit rock bottom before something is done.
    what will be done? Libs will find a way to pin this on Republicans and/or Conservatives, not their own failed policies.

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    Quote Originally Posted by quantum View Post
    what will be done? Libs will find a way to pin this on Republicans and/or Conservatives, not their own failed policies.
    You're right.

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    Is there any real doubt the end-game of this will be a full Federal bailout for Detriot that preserves all the Pensions and Union Contracts/Services, but will short the private debt-owners? We've seen this before, after all.

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    In the end Romney was prophetic and correct.

    If the feds step in then I expect other cities to follow suit. Why be accountable when you can just get bailed out.

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    Quote Originally Posted by Churchill View Post
    A good example of end-stage all-liberal management of a Government.
    Please expand on your vast knowledge of the management style of Detroit. By the way Detroit got f'd by LIBOR as well. But you must of already known that or you wouldn't of made that post, right?

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    Quote Originally Posted by cr726 View Post
    Please expand on your vast knowledge of the management style of Detroit. By the way Detroit got f'd by LIBOR as well. But you must of already known that or you wouldn't of made that post, right?
    Becausse you're a subject matter expert on LIBOR (London Interbank Offered Rate) too right, just like you are on bullet size (lol).

    Look, I can haz google too: http://mfi-miami.com/2013/03/libor-r...troits-demise/

    TLDR: Banks kept giving to Detriot to cover their expenses, Detroit failed to pay them, got hosed by the type of loans they were able to get when the rates changed, then some blame the banks for loaning (for profit), not Detriot for being unable to pay it's bills without such low-class loans.

    Typical, it's always someone elses fault, right?
    Last edited by Churchill; 07-19-2013 at 01:55 PM.

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    Quote Originally Posted by Churchill View Post
    Becausse you're a subject matter expert on LIBOR (London Interbank Offered Rate) too right, just like you are on bullet size (lol).

    Look, I can haz google too: http://mfi-miami.com/2013/03/libor-r...troits-demise/

    TLDR: Banks kept giving to Detriot to cover their expenses, Detroit failed to pay them, got hosed by the type of loans they were able to get when the rates changed, then some blame the banks for loaning (for profit), not Detriot for being unable to pay it's bills without such low-class loans.

    Typical, it's always someone elses fault, right?
    You do understand cities like Detroit got F'd for years and the banks have finally acknowledge they were at fault. Low class loans? Billions upon billions of dollars is not low class loans. UBS paid a huge fine and that didn't help the cities that got screwed. Yup it was all their own liberal fault, you keep on generalizing it's awesome on here. 36 other municipalities have declared bankruptcy, I guess they all must of been liberal too?

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    Yup it was all their own liberal fault, you keep on generalizing
    The last (R) Mayor of Detriot left office in Jan. 1962. The Detriot City Council has also been made up almost exclusively of Democrats since the early 60's as well.

    That's 52 consecultive years of Democrat Party administration of the Government and budget of the City of Detriot.

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    Quote Originally Posted by Churchill View Post
    The last (R) Mayor of Detriot left office in Jan. 1962. The Detriot City Council has also been made up almost exclusively of Democrats since the early 60's as well.

    That's 52 consecultive years of Democrat Party administration of the Government and budget of the City of Detriot.
    Ok, that's the problem, I guess in order to be a profitable city you must elect Republicans. Problem solved.

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    Quote Originally Posted by cr726 View Post
    Ok, that's the problem, I guess in order to be a profitable city you must elect Republicans. Problem solved.
    50 years. There is no way around it. A city that once had a population of over 2 million is now down to about 700k. Failed policies.

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    Quote Originally Posted by DDNYjets View Post
    50 years. There is no way around it. A city that once had a population of over 2 million is now down to about 700k. Failed policies.
    Detroit made Strohs sell and GM fail?

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    Quote Originally Posted by cr726 View Post
    Detroit made Strohs sell and GM fail?
    So,

    1. Martin/Zimmerman was purely about racism.

    2. The IRS Scandal was NOT about Politics, at all.

    3. And now Detriot's fiscal problems have nothing to do with 50 years of one-party administration.

    You're certainly on a roll.

  19. #19
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    Quote Originally Posted by cr726 View Post
    Detroit made Strohs sell and GM fail?
    In part. A city is supposed to provide an environment in which businesses can thrive.

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    Quote Originally Posted by DDNYjets View Post
    In part. A city is supposed to provide an environment in which businesses can thrive.
    Corrupt politicians the Auto unions and too many taking over making money.. The rich and middle class fled Detroit.. They even had a Detroit school board president thats a functional illiterate..

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