I thought cities and other municipals had bond ratings, the worse the rating the higher theAs Detroit teeters on bankruptcy, creditors are left holding the bag - The Washington Post
"Good God, who in their right mind would ever loan Detroit any money?" was what went through my head when I saw this headline.
At $19 billion in debt there must be a whole heap of idiot lenders out there.
Yes, the decline of industrial business led to Detroit's decline, but the massive debt was due to mismanagement by city government. When revenues fell they should have pared back spending, but they went to unions and the unions refused to countenance any cuts, and there was no political will to do the right thing. They just went on spending as if there was no loss of revenues with plenty of corruption to boot.
And now the whole thing has been taken out of their hands and left to a special manager to resolve.
The hope of some in the city government was that they'd get a bailout from President Obama, but Obama has long since thrown the lot of them under the bus.
Creditors have always assumed that holders of municipal bonds will get their money back no matter what, but Detroit may be unable to hold to that. If so it will throw a monkey wrench into the entire municipal bond market, which has already taken hits over poor city performance and falling ratings.
I thought cities and other municipals had bond ratings, the worse the rating the higher the
interest rate. So at the point of near bankruptcy the rate should be near 100%,
but there would be a lot of risk
As Detroit teeters on bankruptcy, creditors are left holding the bag - The Washington Post
"Good God, who in their right mind would ever loan Detroit any money?" was what went through my head when I saw this headline.
At $19 billion in debt there must be a whole heap of idiot lenders out there.
Yes, the decline of industrial business led to Detroit's decline, but the massive debt was due to mismanagement by city government. When revenues fell they should have pared back spending, but they went to unions and the unions refused to countenance any cuts, and there was no political will to do the right thing. They just went on spending as if there was no loss of revenues with plenty of corruption to boot.
And now the whole thing has been taken out of their hands and left to a special manager to resolve.
The hope of some in the city government was that they'd get a bailout from President Obama, but Obama has long since thrown the lot of them under the bus.
Creditors have always assumed that holders of municipal bonds will get their money back no matter what, but Detroit may be unable to hold to that. If so it will throw a monkey wrench into the entire municipal bond market, which has already taken hits over poor city performance and falling ratings.
Yeah.....there's no way any part of this could be laid on the greedy brass at the motor companies who continued to rake off all the profits instead of retooling everything and trying to compete with the foreign auto manufacturers. Not only did the dinosaurs from the 60's and 70's burn twice as much gas they were half as reliable and half as safe as the imports.
Yeah.....there's no way any part of this could be laid on the greedy brass at the motor companies who continued to rake off all the profits instead of retooling everything and trying to compete with the foreign auto manufacturers. Not only did the dinosaurs from the 60's and 70's burn twice as much gas they were half as reliable and half as safe as the imports.
You're suggesting that motor company executives have taken every nickel of
profit for themselves? Pure emotion. No fact.
Yeah.....there's no way any part of this could be laid on the greedy brass at the motor companies who continued to rake off all the profits instead of retooling everything and trying to compete with the foreign auto manufacturers.
Not only did the dinosaurs from the 60's and 70's burn twice as much gas they were half as reliable and half as safe as the imports.
How many blue cities and states aren't teetering? :giggle1:
Ohhh, you're good__what gave me away?!LOL That's a rhetorical question, right?
How many blue cities and states aren't teetering? :giggle1:
California has been receiving billions annually in federal aid_(that means your money)Actually, blue states are mostly holding up the red ones.
Most people would agree that it is probably due to bad management____very bad liberal management_SAN FRANCISCO — After years of ballooning budget deficits, California finally seemed on firmer footing. Unemployment remained high, but revenues and housing prices were up. Taxpayers even voted themselves a tax increase to bring deficits down.
And then came the automatic federal budget cuts known as sequestration.
As the $85 billion in spending cuts slowly roll out nationwide, California officials are girding themselves for a blow not only to the state’s large military industry but also to its nascent economic recovery. Still, experts say, it will most likely slow down, though not derail, the state’s economic growth.
http://www.nytimes.com/2013/03/06/u...back-in-federal-cuts.html?pagewanted=all&_r=0
Fraid not Smokey__at least not according to the federal government_25% of my federal taxes go to red states that are going broke while Minnesota weathers the storm with relative grace.
If you don't trust The Blaze then click this government site where it got these stats: State Summary
As you can clearly see, there’s a difference in the distribution of federal funds among the states. In fact, if you combine “strong GOP” with “likely GOP,” the amount is still less than then amount “strong Dem” states have received in the last 12 years
Red State, Blue State: Which States Have Received the Most Federal Funds Since 2000? | TheBlaze.com
California has been receiving billions annually in federal aid_(that means your money)
Although the federal sequestration budget cuts will reduce that by 9 billion this year_
I think we can both agree that California is not a red state Smokey_
Do you ever wonder how a state with the 12th largest economy in the world got in such a mess?!
Most people would agree that it is probably due to bad management____very bad liberal management_
Fraid not Smokey__at least not according to the federal government_
Most of your tax dollars have been propping up blue states for the last 12 years_
If you don't trust The Blaze then click this government site where it got these stats: State Summary
There is never enough red to bring California out of the blue_Well I think we can all agree that California is a uniquely mismanaged state, and it's also worth noting that in some parts it's quite red.
Excuse me? What are you talking about?As far as your federal funding statistics, they conveniently ignore income taxes, which is the way the blue states prop red states on the regular and continual basis, so they don't really show the whole picture.
To par down the disease of the dyingest city in America to a partisan talking point is pretty damn low. To admit to taking joy in watching it burn, as another did, is even lower.
The reality is that Detroit has been going down for way, way longer than the recent fiscal issues of America. It's been going downhill since I've been alive.
And in reality, people have been studying and debating and trying to figure out WHY for that entire time, because it's just not that simple. Every problem that afflicts Detroit is something that some other city has survived, and there is no obvious answer to why Detroit isn't.
There is never enough red to bring California out of the blue_
It's not even considered red when it has a republican governor_
California is a hard-core leftist state which is why it is in such a mess_
Excuse me? What are you talking about?
Are you suggesting that federal income taxes are not part of those federal funds?
The answer is obvious, you simply ignore it. The unions and democrat officials. The same thing is happening in each area liberals who now call themselves progressive..lol rule. Their answer to everything is raise taxes, hire government workers and spend like there's no tomorrow. Pssssssst......Tomorrow's here.
The answer isn't at all obvious to anyone who isn't a hack. Plenty of cities are blue and have unions, and rank as some of the best-off cities in the country, including the one I live in (I started avoiding red cities after I saw what so many of them are like: no jobs, huge poverty, persistent crime... and it's a shame since so many of them once had a thriving culture).
You have a superficial and entirely self-serving concept of what is actually happening.
As you suggested, I have re-read my own statistics but found absolutely nothing that disputes the fact that blue states do indeed receive more federal funds than red states_If you read your own dishonest statistics, you'd be able to answer that yourself.
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