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Detroit Files for Bankruptcy
#1
http://www.philadelinquency.com/?p=3103

Well, it’s finally over. Done. Complete. Finito. [Update: Now it's really over... they just filed.] Detroit has finally admitted it must give up. The Motor City, once a burgeoning bustling metropolis at its peak of 1.8 million people (that’s about 100K more people than Philadelphia has right now) is going to file for Chapter 9 bankruptcy most-likely tomorrow morning according to the Detroit Free-Press.


In a way, we should be jealous. Once the court fight over whether Detroit can actually file a petition is settled (expected to be in Detroit’s favor), intransigent municipal unions unwilling to work with the city’s government will suddenly have to deal with the power exerted by a single Federal bankruptcy judge against a dying city with few options to raise revenue. Detroit is already under an emergency manager after the sudden resignation of former mayor Kilpatrick over his text message scandal.

The bankruptcy allows much deeper scrutiny into minute details of the Detroit’s budget. While muni bankruptcies are windfalls for forensic accountants, actuaries, policy wonks and even journalists; vendors, contractors, suppliers and consultants get just as much scrutiny as well as the bellyaching over municipal benes and pensions.

State government in Michigan is not in any financial shape to thwart Detroit’s bankruptcy by covering over its liabilities. It could offer to restructure them, but those overtures came and went apparently. The public will no doubt learn precisely who holds Detroit’s bonds expecting to be paid back and will have to eat haircuts on the debt.

While bankruptcy sounds absolutely ghastly and drastic, it does one thing to muni balance sheets that no amount of revenue-raising efforts can do: downsize Detroit’s government to match what the city looks like today.

While Philadelphia is forbidden by its Home Rule Charter to go this route, if Detroit enters this process and comes out fiscally healthy at the end, this could eventually put Detroit on a path to sustainability and growth which decades of endless depression never did. If this works out for Detroit, bankruptcy might become more alluring for other cities facing the same balance sheet blues.

Motown’s Mowing Down Its Creditors:
http://www.scribd.com/fullscreen/1545872...share=true
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#2
Saw a headline that they're requesting that the feds bail them out with tax monies. What do you think the odds are of that happening? I think they're pretty damn good.
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#3
streaker69;111381 Wrote:Saw a headline that they're requesting that the feds bail them out with tax monies. What do you think the odds are of that happening? I think they're pretty damn good.

of coarse, What are brothers for..Tongue
With the Second Amendment saying what it says, Why isn't the Federal Government Suing NY
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#4
Why don't they just pawn the place?
The Second Amendment does not GIVE us the right. It tells the gov they can not infringe our right.
[Image: s2b0iw.jpg]
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#5
kadar;111397 Wrote:Why don't they just pawn the place?

Even Chumlee isn't dumb enough to give them anything for it.
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#6
Yeah like House Republicant's would ever agree to that.

This is the best way out. No politicians required.
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#7
kadar;111397 Wrote:Why don't they just pawn the place?

Can you imagine Seth and the fat chick running the city?
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#8
I hope they get the BK. It's the taxpayers money that is at stake. Maybe they can start over and be fiscally responsible next time around.

Yeah right! Angry
LostCyborg, proud to be a member of pa2a.org since Jun 2013.

You wouldn't be able to run as many people over with that car if it didn't drive as far. It should only have a 10 gallon fuel tank.
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#9
It only took 51yrs of being the "most Liberal large city in the US" to bring about its financial ruin!!
NRA Life Member, NRA Certified Instructor:  HFS, Pistol, Rifle, PPIH,PPOH
Suarez Combat Arms Instructor School
Admit nothing.  Deny everything. Demand proof.
If we lie to the government, it's a crime. If the government lies to the people, it's called politics.
Paying for welfare is slavery.
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#10
streaker69;111381 Wrote:... What do you think the odds are of that happening? I think they're pretty damn good.

I do too. Highly likely.
JeffreyD - recovering Statist
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