Detroit files bankruptcy

[bull]

I say raze the place, give some of it back to the indians and turn the rest of it back into farmland.

http://www.detroitnews.com/article/20130718/METRO01/307180103/Detroit-files-Chapter-9-bankruptcy?odyssey=mod

[Mike DC]

During a month of negotiations, Orr has reached a settlement with only two creditors: Bank of America Corp. and UBS AG. They have agreed to accept 75 cents on the dollar for approximately $340 million in swaps liabilities, according to a source familiar with the deal.

Unsecured creditors could take the biggest hit in bankruptcy court. Orr wants them to share a $2 billion payout on approximately $11.5 billion worth of debt, which includes an estimated $9.2 billion in health and pension benefits and $530 million in general-obligation bonds.

BofA & UBS will get 75% of what they are owed.  

Bondholders & pensioners will likely struggle to get 25%.



Now there's a shocker.   

[Cooter]

Now will it REALLY be 'Imported From Detroit'?

[DC_1]

Years of corrupt politicians, max exodus of the tax base, no inner-city jobs and out of control crime can't go on forever. 

[68X426]

[1970Moparmann]

Illinois isn't that far behind..  Hmm, what's the common theme here.

[chargerboy69]

Years of corrupt politicians, max exodus of the tax base, no inner-city jobs and out of control crime can't go on forever.  

All of this is true, right on the money. Politicians and gangs have ruined that city.

I am not old enough to remember Detroit the way it was, but I am lucky enough to drive through that war zone. . . I mean city    twice a month.

[Ghoste]

Illinois isn't that far behind..  Hmm, what's the common theme here.

Nor California.

[JB400]

I can see quite a few cities going bankrupt the way things are going.  Hopefully, the war zone doesn't spread.

[Mike DC]

  
Politicians?  Gangs?  


The overwhelming economic engine of that entire region has been steadily declining/leaving since before many of us were born.  The reasons for that were a century in the making and reflect worldwide changes in business.  Everything else happening to Detroit is details & effects of that basic cause.  

---------------------


Try looking at a mining town when the local mine quickly runs dry.  No political party or police force is going to keep that place successful & friendly for very long after that happens.

[Dino]

We've been waiting for it.  It is very very sad to drive through the city and see what has become of it.  You can still imagine how it once was, there's some beautiful architecture in Detroit, sadly much of it in disrepair.  Downtown is very nice but don't stray too far outside.

I hope they can save what is left of the city.  There were plans to knock down all the vacant buidlings and start farming again, maybe that is back in on the option list now.  Crime will never be controlled, not unless they finally clean up the gangs.  Too bad they're the ones that run the place.

[Old Moparz]

There are a lot of cities in similar financial trouble so this will be watched closely for many reasons, including the political ones. Anyone close to retirement that has a pension in Detroit may be ready to s**t a brick thinking about how sweet that "10 cents on the dollar" retirement package is going to be. Instead, they will be forced to work until they die broke. Say & think what you want, but the anti union/worker crowds are absolutely drooling over this as another way to completely bust up a union & screw over more people.

[Indygenerallee]

Sponsored by NAFTA!! We are all headed down this road unfortunately too many jobs have been outsourced to other countries.

[DC_1]

Sponsored by NAFTA!! We are all headed down this road unfortunately too many jobs have been outsourced to other countries.

It isn't NAFTA that caused this problem. If you think all the jobs that were in Detroit disappeared to México or Canada (which are the only other NAFTA participants) you are a little misinformed. Detroit has had a max exodus of jobs not only to low wage Asian counties but also to low wage southern US states. It all contributed to the situation they find themselves in....... Continuing services and running a city on revenue that is not there and will never be there for the foreseeable future is the problem. High crime is just the added bonus. Even if the murder rate of 354 per year drop to 0 it won't bring jobs and revenue to the city. Unlike the Auto companies bankruptcy, were after washing away most of their debt all they had to do is sell more cars to be profitable and viable again. What does Detroit do in the short term to generate the funds it needs to exist and grow?

No quick fix here even after bankruptcy I'm afraid.....

[Ghoste]

Not to mention the NAFTA jobs in Canada existed for decades, there were none that moved to Canada from the US because of the agreeement.  Jobs from both countries went to Mexico but as far as the Canadian part of it, all it did was make it easier for the two nations to trade.  They should have had a Canada Us trade agreement but without the Mexican job desperation it would have defeated the purpose I guess.

[Mike DC]

 
The industry & jobs came to Detroit in the first place because they were outsourcing away from the more expensive population centers where cars were selling big.  Everybody loves the principle on the way up, but hates it on the way down. 


Once China & India's populations start getting a better standard of living, industries will probably outsource again to someplace like Africa. 

[Troy]

 
The industry & jobs came to Detroit in the first place because they were outsourcing away from the more expensive population centers where cars were selling big.  Everybody loves the principle on the way up, but hates it on the way down. 


Once China & India's populations start getting a better standard of living, industries will probably outsource again to someplace like Africa. 

One of the IT companies I've worked with in the past outsourced to India, who outsourced the job to China, who outsourced it to Brazil. Yep, as soon as Africa has consistent electricity they'll be on the list!

Troy

[Old Moparz]

A judge just declared the bankruptcy filing to be unconstitutional.

http://www.reuters.com/article/2013/07/19/us-usa-detroit-ruling-idUSBRE96I11220130719

Michigan Judge Orders Withdrawal of Detroit Bankruptcy Petition

DETROIT | Fri Jul 19, 2013 3:21pm EDT

(Reuters) - A Michigan judge on Friday ordered Detroit's state-appointed emergency manager to withdraw the federal bankruptcy petition he filed for the city on Thursday.

Ingham County Circuit Court Judge Rosemarie Aquilina's order said the 2012 Michigan law that allowed Governor Rick Snyder to approve the city's bankruptcy filing, the largest municipal bankruptcy filing ever in the United States, violated the Michigan Constitution.

The declaratory judgment came in lawsuits filed this month by Detroit pension funds, retirees and workers, which sought to prevent a bankruptcy filing that would ultimately impair retirement benefits in violation of constitutional protections for those benefits.

[Budnicks]

Years of corrupt politicians, max exodus of the tax base, no inner-city jobs and out of control crime can't go on forever. 

Bingo

[Budnicks]

A judge just declared the bankruptcy filing to be unconstitutional.

http://www.reuters.com/article/2013/07/19/us-usa-detroit-ruling-idUSBRE96I11220130719

Michigan Judge Orders Withdrawal of Detroit Bankruptcy Petition

DETROIT | Fri Jul 19, 2013 3:21pm EDT

(Reuters) - A Michigan judge on Friday ordered Detroit's state-appointed emergency manager to withdraw the federal bankruptcy petition he filed for the city on Thursday.

Ingham County Circuit Court Judge Rosemarie Aquilina's order said the 2012 Michigan law that allowed Governor Rick Snyder to approve the city's bankruptcy filing, the largest municipal bankruptcy filing ever in the United States, violated the Michigan Constitution.

The declaratory judgment came in lawsuits filed this month by Detroit pension funds, retirees and workers, which sought to prevent a bankruptcy filing that would ultimately impair retirement benefits in violation of constitutional protections for those benefits.

I just read the same thing too... too bad they are so damn messed up in Detroit, a once proud thriving & growing Metropolitan & Automotive Manufacturing town/city, Gangs, Crime, corrupt Politicians in the Unions pockets, overreaching Pulbic Sector Union pensions, that can never be sustained for any period of time, high taxes, crumbling infrastructures, downward spiraling housing & good old greed, will do it every time....

[DC_1]

A judge just declared the bankruptcy filing to be unconstitutional.

http://www.reuters.com/article/2013/07/19/us-usa-detroit-ruling-idUSBRE96I11220130719

Michigan Judge Orders Withdrawal of Detroit Bankruptcy Petition

DETROIT | Fri Jul 19, 2013 3:21pm EDT

(Reuters) - A Michigan judge on Friday ordered Detroit's state-appointed emergency manager to withdraw the federal bankruptcy petition he filed for the city on Thursday.

Ingham County Circuit Court Judge Rosemarie Aquilina's order said the 2012 Michigan law that allowed Governor Rick Snyder to approve the city's bankruptcy filing, the largest municipal bankruptcy filing ever in the United States, violated the Michigan Constitution.

The declaratory judgment came in lawsuits filed this month by Detroit pension funds, retirees and workers, which sought to prevent a bankruptcy filing that would ultimately impair retirement benefits in violation of constitutional protections for those benefits.

Its only day one and its getting good already....


Michigan AG is pulling the rug from under this judges ruling


http://www.freep.com/article/20130719/NEWS06/307190075/

[mauve66]

good ol' pensioners giving up $ .90 on the dollar but the corporate giants only giving up $ .25, yeah, that will work for the long run when the pensioners can't afford to buy anything from the giants

[Tilar]

Gee imagine that. Detroit has been ran by unions and liberals for such a long time. I guess they finally ran out of everybody elses money.

[Budnicks]

Gee imagine that. Detroit has been ran by unions and liberals for such a long time. I guess they finally ran out of everybody elses money.

Bingo we have a winner 

[Paul G]

Say & think what you want, but the anti union/worker crowds are absolutely drooling over this as another way to completely bust up a union & screw over more people.

The unions have to take some responsibility for the decay and final demise. I was a union member for 31 years, USWA local 1010, in private industry. We had to give back benefits and take lower wages several times over the years to keep our company alive. Ever hear of a public workers union doing that? As the city got smaller I would doubt the public workers downsized. They never do. My pension is just a fraction of what a public workers pension is. At least mine is solvent, for now.

I just hope "we the people" don't have to pick up the tab for Detroit's mistakes. Nothing would piss me off more than knowing that my tax dollars are going to support some loaf on a state pension, who's pension is better than mine in the first place. Only difference is mine is a legitimate amount and his/hers is an overinflated govmnt deal.