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Detroit Files for Largest Municipal Bankruptcy in US History

Josie

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UPDATE: Detroit Files for Largest Municipal Bankruptcy in U.S. History | TheBlaze.com

From the Associated Press:
Detroit has become the largest city in U.S. history to file for bankruptcy.
State-appointed emergency manager Kevyn Orr on Thursday asked a federal judge permission to place the city into Chapter 9 bankruptcy protection.
Detroit-Bill-Pugliano-Getty-Images-GYI0064050564_0.jpg
Detroit- March 23: Buildings in an entire city block in what was once Detroit’s prime business district sit largly abandoned March 23, 2011. The new census figures show that Detroit has lost 25 percent of its population in the last ten years, bringing the city’s population down to its lowest since 1910. (photo by Bill Pugliano/Getty Images)


Detroit — once the epicenter of the American auto industry — may file for federal bankruptcy as early as Friday morning, the Free Press reports.
“The filing would begin a 30- to 90-day period that will determine whether the city is eligible for Chapter 9 protection and define how many claimants might compete for the limited settlement resources that Detroit has to offer,” the report notes.
“The bankruptcy petition would seek protection from creditors and unions who are renegotiating $18.5 billion in debt and other liabilities,” it adds....
 

Ontologuy

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So sad.

We continue to succumb to the lingering effects of The Great Recession.

There is no real recovery for the average American, and without that tax base of employed residents, cities simply have no collateral and thus can't continue to borrow any longer .. and now must fold.

It's an eventual process .. that eventually happened to Detroit.

I wonder who's next.
 

ttwtt78640

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UPDATE: Detroit Files for Largest Municipal Bankruptcy in U.S. History | TheBlaze.com

From the Associated Press:
Detroit has become the largest city in U.S. history to file for bankruptcy.
State-appointed emergency manager Kevyn Orr on Thursday asked a federal judge permission to place the city into Chapter 9 bankruptcy protection.
Detroit-Bill-Pugliano-Getty-Images-GYI0064050564_0.jpg
Detroit- March 23: Buildings in an entire city block in what was once Detroit’s prime business district sit largly abandoned March 23, 2011. The new census figures show that Detroit has lost 25 percent of its population in the last ten years, bringing the city’s population down to its lowest since 1910. (photo by Bill Pugliano/Getty Images)


Detroit — once the epicenter of the American auto industry — may file for federal bankruptcy as early as Friday morning, the Free Press reports.
“The filing would begin a 30- to 90-day period that will determine whether the city is eligible for Chapter 9 protection and define how many claimants might compete for the limited settlement resources that Detroit has to offer,” the report notes.
“The bankruptcy petition would seek protection from creditors and unions who are renegotiating $18.5 billion in debt and other liabilities,” it adds....

Watch as only the commercial interests must take the hit as the gov't unions/pensioners will be protected out of "fairness". Those that work(ed) for the gov't, our "sevants", are surely to be treated as masters in this situation.
 

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A big reason Orr did this was that the major creditors and pension holders would not give in to his demands. I strongly hope and pray that the judge will see the very practical difference between major corporations who hold bonds with the city and people on pensions who pushed a broom or cleaned bathrooms or drove a bus for 35 years to get a small pension. The judge should treat the two very very differently.
 

Jack Fabulous

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A big reason Orr did this was that the major creditors and pension holders would not give in to his demands. I strongly hope and pray that the judge will see the very practical difference between major corporations who hold bonds with the city and people on pensions who pushed a broom or cleaned bathrooms or drove a bus for 35 years to get a small pension. The judge should treat the two very very differently.
Millions of retired Americans are invested in municipal bonds. Those "major corporations" are the investment firms that handle the transactions. Don't think for a second that sparing pensioners and dumping the whole thing on the bond holders is going to spare the "little guy".
 

ttwtt78640

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MaggieD

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Millions of retired Americans are invested in municipal bonds. Those "major corporations" are the investment firms that handle the transactions. Don't think for a second that sparing pensioners and dumping the whole thing on the bond holders is going to spare the "little guy".

Exactly. I have 20% of MY funds invested in municipal bonds. Hopefully, the closed end funds I own aren't invested in Detroit. What a disaster. It's pretty much assured, I'd say, that more retired Americans will be hurt than pensioners. The pensioners have the PBGC behind them. Individual investors have nothing.
 

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A big reason Orr did this was that the major creditors and pension holders would not give in to his demands. I strongly hope and pray that the judge will see the very practical difference between major corporations who hold bonds with the city and people on pensions who pushed a broom or cleaned bathrooms or drove a bus for 35 years to get a small pension. The judge should treat the two very very differently.

I like how your characterize a government worker pushing a broom and cleaning bathrooms or drove a bus for 35 yrs to get a small pension. Not hardly, maybe you can explain what exactly is a small pension in dollars. I would suspect pushing a broom would not warrant a pension in the real world, only in government. Oh and just what percent of all the government workers in Detroit are pushing a broom.
 

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Re: Detroit emergency manager files bankruptcy

Watch as state/federal money is given to the "needy" gov't/union employees while all others are told to accept pennies on the dollar. ;)

That will be the liberal plan just like the California plan is to get Federal tax dollars to bail them out. Bankruptcy is a different animal though, should get interesting.
 

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Re: Detroit emergency manager files bankruptcy

Is there any other option here BESIDES a federal bail out?

It's going to look pretty bad if Detroit is left to twist in the wind after we bailed out Wall Street.
 

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UPDATE: Detroit Files for Largest Municipal Bankruptcy in U.S. History | TheBlaze.com

From the Associated Press:
Detroit has become the largest city in U.S. history to file for bankruptcy.
State-appointed emergency manager Kevyn Orr on Thursday asked a federal judge permission to place the city into Chapter 9 bankruptcy protection.
Detroit-Bill-Pugliano-Getty-Images-GYI0064050564_0.jpg
Detroit- March 23: Buildings in an entire city block in what was once Detroit’s prime business district sit largly abandoned March 23, 2011. The new census figures show that Detroit has lost 25 percent of its population in the last ten years, bringing the city’s population down to its lowest since 1910. (photo by Bill Pugliano/Getty Images)


Detroit — once the epicenter of the American auto industry — may file for federal bankruptcy as early as Friday morning, the Free Press reports.
“The filing would begin a 30- to 90-day period that will determine whether the city is eligible for Chapter 9 protection and define how many claimants might compete for the limited settlement resources that Detroit has to offer,” the report notes.
“The bankruptcy petition would seek protection from creditors and unions who are renegotiating $18.5 billion in debt and other liabilities,” it adds....

Sorry, Josie, but you beat me by about 9 minutes. We have a duplicate thread here. My apology
 

ttwtt78640

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Re: Detroit emergency manager files bankruptcy

Is there any other option here BESIDES a federal bail out?

It's going to look pretty bad if Detroit is left to twist in the wind after we bailed out Wall Street.

Better those morons that elected morons be allowed to suffer for their actions than simply all of those in the entire state/nation.
 

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Jack Fabulous

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Re: Detroit emergency manager files bankruptcy

Better those morons that elected morons be allowed to suffer for their actions than simply all of those in the entire state/nation.
I have no sympathy for those who are responsible for this. A good portion of it is criminal, IMO. But kids still need to go to school, they still need cops, firefighters, etc..

What a mess.
 

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Re: Detroit emergency manager files bankruptcy

I have no sympathy for those who are responsible for this. A good portion of it is criminal, IMO. But kids still need to go to school, they still need cops, firefighters, etc..

What a mess.

The corruption in major cities around the nation is going to lead to more of this and the Obama Administration is going to try and use federal taxpayer dollars to bail these cities out.
 

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Re: Detroit emergency manager files bankruptcy

Next to file....the entire state of California.

And yes, Obama will ask the red states to bail them out.
 

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Next to file....California.
 

Fisher

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Re: Detroit emergency manager files bankruptcy

Public pensions should be replaced with a fixed matching IRA systems. The city puts in whatever percent it puts in and then it is up to the employee to put more in or decide which funds the money goes in and when they part ways, they part ways for good.

That said, Detroit should have been retreating from big city status in an organized way since the 70's. This is what happens when you try to fake it until you make it a second time.
 

CanadaJohn

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Re: Detroit emergency manager files bankruptcy

Detroit emergency manager files bankruptcy - Chicago Sun-Times

Amazing how successful the liberal economic policies are for major cities in this country. This is the largest city in the nation to file for bankruptcy with more to come. Liberals better wake up

I'd make two points here:

1. I find it remarkable that a once great city like Detroit has floundered - equally so that it now only has a population of 700,000 when almost 2,000,000 people lived there in the 1950s. It's very sad.

2. I'd rather see your federal government bail out Detroit and put it back on solid financial ground than have it pour more wasted money into propping up Afghanistan, Pakistan, Egypt and others.
 

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Re: Detroit emergency manager files bankruptcy

I'd make two points here:

1. I find it remarkable that a once great city like Detroit has floundered - equally so that it now only has a population of 700,000 when almost 2,000,000 people lived there in the 1950s. It's very sad.

2. I'd rather see your federal government bail out Detroit and put it back on solid financial ground than have it pour more wasted money into propping up Afghanistan, Pakistan, Egypt and others.

The problem is the Federal Govt. has a history of throwing good money after bad by rewarding bad behavior, i.e. TARP therefore nothing changes and the problem recycles.
 

Captain Adverse

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Re: Detroit emergency manager files bankruptcy

I'd make two points here:

1. I find it remarkable that a once great city like Detroit has floundered - equally so that it now only has a population of 700,000 when almost 2,000,000 people lived there in the 1950s. It's very sad.

2. I'd rather see your federal government bail out Detroit and put it back on solid financial ground than have it pour more wasted money into propping up Afghanistan, Pakistan, Egypt and others.

Point 1 concerns the loss of industry caused by a combination of factors, coupled with an inability to re-introduce replacement industries to take up the slack.

Point 2 serves no useful purpose unless point 1 is successfully addressed.
 

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Re: Detroit emergency manager files bankruptcy

The problem is the Federal Govt. has a history of throwing good money after bad by rewarding bad behavior, i.e. TARP therefore nothing changes and the problem recycles.

This is true, and it would have to be well planned, but the upside in Detroit is far superior to the upside in Afghanistan.
 
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