Author Topic: Detroit Declares Bankruptcy  (Read 1246 times)

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Offline JustABear

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Detroit Declares Bankruptcy
« on: July 18, 2013, 10:50:59 PM »
The City of Detroit has declared backruptcy. The largest US city to do so. How many more are on the edge? What is the next step? What will this mean for the thousands on Government handouts? It will be close watching to see how and if City employees continue to be paid, what services are reduced and how much, the fate of city pensions... scary SCARY stuff...

 "The team said Detroit was defaulting on about $2.5 billion in unsecured debt to "conserve cash" for police, fire and other services.
"Despite Mr. Orr's best efforts, he has been unable to reach a restructuring plan with the city's creditors," the governor wrote. "I therefore agree that the only feasible path to a stable and solid Detroit is to file for bankruptcy protection."
Detroit's budget deficit is believed to be more than $380 million. Orr has said long-term debt was more than $14 billion and could be between $17 billion and $20 billion." ... From CBC News

JAB
« Last Edit: July 18, 2013, 10:54:33 PM by JustABear »
THERE ARE NO PROBLEMS... ONLY OPPORTUNITIES FOR SOLUTIONS

JAB

Gravlore

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Re: Detroit Declares Bankruptcy
« Reply #1 on: July 19, 2013, 02:01:22 AM »
Every Detroit resident owes 25K and this is the 'math' that forced them into bankruptcy. What of the federal debt per person that is 53K? Why isnt America as a whole bankrupt? Hmm.

Detroits police response time is 58 min. Why even bother having a 'force'?

http://www.cnbc.com/id/100898169
« Last Edit: July 19, 2013, 02:02:41 AM by Gravlore »

Offline thecrownsown

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Re: Detroit Declares Bankruptcy
« Reply #2 on: July 19, 2013, 10:09:32 AM »
No one likes to see this kind of situation..but if there is a rosey side...it's that reality is starting to catch up with our governments, and to the general populations.

Governments are realizing that currency, debt, is real, not a political tool or paper to be passed onto the next political power that comes in.  When you can't even pay the interest on your debt and you go bankrupt doesn't matter what your political stripe is...no money means no money.  The US government, though acting very bipartisan now is at least talking about it.  They are between 14 - 20 years from being in the exact same situation as Greece.  The difference is, they are not burying there heads in the sand pretending everything will be ok, and save the problem for the next gov't. 

so in a way, recessions, depressions are a way of economic reality sinking back into the system.  Tipping the boat back upright from an unrealistic or unsustainable phoney economy.

The recovery will be slow, but more solid than previous recessions.  There has to be more bankruptcies.  If not...if we still pretend that we can ignore the problem or make temporary amends....then it will just be worse down the road when we leave an even bigger debt/deficit for the next generation.


"Individual rights are not subject to a public vote; a majority has no right to vote away the rights of a minority; the political function of rights is precisely to protect minorities from oppression by majorities and the smallest minority on earth is the individual."

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Offline thecrownsown

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Re: Detroit Declares Bankruptcy
« Reply #3 on: July 19, 2013, 10:32:13 AM »
Like things like this just have to stop:

https://www.youtube.com/watch?v=oKUwRbrmlgw 

They will just keep on spending...and spending...and spending.....


"Individual rights are not subject to a public vote; a majority has no right to vote away the rights of a minority; the political function of rights is precisely to protect minorities from oppression by majorities and the smallest minority on earth is the individual."

Ayn Rand

Offline Greenguy

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Re: Detroit Declares Bankruptcy
« Reply #4 on: July 19, 2013, 11:34:33 AM »
Growing up in that neck of the woods I personally spent a lot of time in Detroit as a young adult and love the city.  I can tell you that the bullet that probably killed Detroit was fired in 1967.  It just took this long for the city to bleed out.
The race riots lit the whole city up in flames.  My parents remember watching the city burn from the safety of Riverside Drive in Windsor.  After the riots, the exodus began.  Everyone that had money moved out of Detroit city and into the surrounding towns.  Large areas of once vibrant communities stand completely vacant.  The people that are too poor to move out are also too poor to pay taxes, fix their properties, etc... 
Some areas, like Indian Village, managed to fight back and maintain their properties.  Those areas are now like little oases in the desert.   Grosse Pointe Michigan is like the 90210 zip code of California.  A few minutes drive from downtown Detroit, they are their own town and are filthy rich. 
Areas like Greek Town and Mexican Village are still popular places to go. 
It is a shame that this once mighty giant has fallen, but there isn't enough of a tax base inside the city limits to keep up with the huge infrastructure.  Anyone driving on I-75 can see how bad it is, even from the freeway.