Detroit, Mi USA .. Bankrupt!!!

Received: Jul 18, 2013 4:43 PM
Subject: Detroit files for bankruptcy m.

Detroit files for bankruptcy m.cbsnews.com

What could the USA face! How does this afect Americans? How could this finnaly happen? What will this do to auto makers there? How will this affect Michigan?

 

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Surely that is big news, and shows how a famous city in usa was not working.

But what happens to cities in america that cannot pay there bills? For people not watching the news, what happens after such a thing?

Will that bring in administrators from the federal gov to run it, or what happens?

 

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A few more banktrupcies. A lot of cities have done this already, including Stockton, Harrisburg and San Bernadino.

Not too much. If you work for, owe money to, or are owed money by Detroit you might have to renegotiate. Beyond that not too much change.

Same way any other bankruptcy happens.

Won't make much difference.

No, a judge or arbiter sits down, basically 'takes over' fiscal responsibility, renegotiates the debt and decides who gets paid first. They don't "replace the government" or anything. For 99% of the people there it will be business as usual.

 

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The Ruins of Detroit

Although the actual bankruptcy probably won't change America or even Detroit much, what preceded certainly has. Take a look at what's left of the city's past grandeur...

From Time's "Detroit's Beautiful, Horrible Decline"

Michigan Central Station
Detroit's main train station, opened in 1913, has not been used since 1988.

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William Livingstone House
Constructed in 1893 in the once elegant Brush Park neighborhood, this home, designed by architect Albert Kahn, was moved from its original location several years ago by preservationists who hoped to maintain it. It was demolished last year.

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St. Margaret Mary School
Many of the city's Catholic schools have been closed, though the churches they are affiliated with remain active.

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David Broderick Tower
One of the city's most prominent skyscrapers, this 35-story tower once housed the offices of many doctors, lawyers and dentists. It has been virtually empty since the 1980s. Developers hope to convert the building to residential units by 2010.

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United Artists Theater
This spectacular Spanish Gothic theater, built in 1928, was closed in the 1970s.

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Packard Plant
Luxury-auto maker Packard produced its last car here in 1956.

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Ruins of Detroit cont...

Lee Plaza Hotel
Once one of the most luxurious residential hotels in Detroit, Lee Plaza closed in the 1990s.

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Lee Plaza Hotel Room
Marchand and Meffre found a lot of furniture and appliances left behind.

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Wilbur Wright School
This public school closed in 2005.

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Remains of a City
On their website, the photographers write, "Ruins are the visible symbols and landmarks of our societies and their changes ... the volatile result of the change of eras and the fall of empires. This fragility leads us to watch them one very last time: to be dismayed, or to admire, it makes us wonder about the permanence of things."

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Rather sobering...

 

Now lets see the pictures of Detroit´s citizens. Awaiting...

 

You've lost me here youreyes. What are you getting at regards the citizens?

 

Right on Schedule

Given that the whole point of suspending democracy and placing Detroit under emergency rule was to avoid bankruptcy, and that the emergency manager never really tried—it was a fifty-fifty shot—it would seem this experiment in noble dictatorship has failed about on schedule. The upshot, though, is that if they get away with this, they'll strip over ninety cents on the dollar from public employee pension funds.

And that's really what this is about.

 

And social services, probably.
When the IMF moves on a country with too much debt, they usually shut down the free clinics and environmental protection agencies first.
Riot-police and arms merchants stay in business.
It will be interesting to see how the US devolves into a `developing nation`.

 

Thx for the Pictures Ran.
Those were very interesting.

 

I guess they finally ran out of other people's money

 

Honestly, I think there was a hidden agenda behind the "emergency managment" thing.

 

This will have virtually no impact on the USA. It will have a big effect on Detroit pensioners, as they are the city’s largest creditors and are going to lose a good portion of their pension and healthcare benefits as a result of this bankruptcy. The bankruptcy court will take over the city and appoint a trustee to work with city and oversee its finances. The bankruptcy court will approve all expenditures and a financial reorganization plan will be created, approved by the court and implemented.

City services will continue and city schools will continue. Secured creditors will be given preference for payments. Unsecured creditors will get less than they are owed – in some if not many cases substantially less than they are owed. City pensioners are going to get hurt as they are a very big part of the city’s fiscal burden. The court appointed trustee is will ultimately decide how city resources are divided, if the city’s creditors cannot come to an agreement amongst themselves. Detroit city pensioners had best hope for a pension friendly court appointed bankruptcy trustee.

The city’s finances will be restructured (i.e. some debts will be forgiven) and the city will, in a year or so, exit bankruptcy and be financially viable which is light years ahead of where it is today. Restructuring will be the result of negotiations with the city’s creditors, the city, and the bankruptcy court. Detroit will come back and it will be better and stronger as a result of this bankruptcy. It will be much better able to deliver services to residents than it is today. And that is a good thing, a very good thing for the residents…not so much for city creditors.

This will have little impact on most Americans. Detroit only has about 20 billion in debt of which 12 billion is unsecured. While that is a lot for the average Joe and for a municipality like Detroit, it is a pittance in a 16+ trillion dollar economy. The resolution of this bankruptcy may have some minor impacts on the markets for municipal debt, but I think any impact will be minimal. It’s not like anyone couldn’t see this coming. Detroit has been in financial trouble for a very long time now. And city leaders have not been very responsible in managing the city’s finances for a very long time now.

This won’t affect car production or the US auto industry as relatively little car production remains in Detroit. Since the 1970’s almost all manufacturers have been globalizing production. Globalization was one of the causes leading to Detroit’s fiscal woes. It was the genesis of their woes.

This is not the first time a municipality has filed for bankruptcy, nor is it unexpected especially after a major recession. There have been some 600 municipal/government bankruptcies since 1934. The bankruptcy code will allow the city an opportunity to emerge from bankruptcy stronger and better able to serve its residents. I think there is certainly a lot of potential in Detroit. It has a lot to offer. And I have every confidence it will emerge from bankruptcy in the not too distant future better and stronger. It is an opportunity for a new beginning.

http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter9.aspx

 

Blame it to the unions black and Hill billy; but the Arabs will rebuild it again.

 

Most democratic run big cities may see the same fate. Corrupt governments, too much public union leverage and too much welfare state slowly bleeds the the cash cow, until there is productivity flight to the suburbs to avoid the cancer. Detroit is now a ghost town of its former self, which at one time in the 1950's had the highest per capita wealth in the country. The auto industry could not handle, regulations, union costs and high taxes. The bankruptcy will excise the cancer

 

Let the demographics statistics speak for Detroit´s demise. Go ahead: http://www.urbanresearchmaps.org/comparinator/pluralitymap.htm
choose Detroit and side by side comparison.

 

I would agree

Oh, there is. It's about securing Republicans in political office. The emergency management has hurt blacks, and the union fight the emergency manager lost today is part of the governor's acknowledged vendetta against organized labor.

Still, though, they did lose round one of the pension theft:

A Michigan judge declared that Detroit's Chapter 9 bankruptcy filing violated the state's constitution and ordered Gov. Rick Snyder to withdraw it.

Circuit Court Judge Rosemarie E. Aquilina in Lansing Friday criticized Mr. Snyder for rushing the filing into court Thursday before she could rule on a bid by city workers and their pension funds to consider an emergency request to block the filing.

“I'm finding the actions that were taken in filing bankruptcy as overreaching and unconstitutional,” she said.

She ordered the governor to direct Detroit emergency manager Kevyn Orr to immediately withdraw the bankruptcy petition. She also said he cannot authorize further filings that would impair or diminish public pension benefits.

Attorney General Bill Schuette applied for permission to appeal the decisions. He also filed a motion to suspend Ms. Aquilina's rulings pending appeal, said Joy Yearout, a spokeswoman for the attorney general, in an e-mailed statement.

(Bloomberg)​

Actually, as you might notice, they lost the whole thing in court today.

And they're fuming angry for having lost. Kenneth Klee, who filed the bankruptcy, apparently in order to disrupt another proceeding, complained that the judge could be thrown in jail for defying his authority.

This is all about two things—white supremacy and union-busting. Nearly half of Michigan's black residents are now living under emergency suspension of democracy. And, yes, the Detroit emergency management team just got smacked down for trying to illegally usurp pension funds.

And given the lack of efficacy about the whole emergency management program, it really is hard for the program's supporters to dodge the most blatant outcomes, the partial disenfranchisement of nearly half the state's blacks, and the attempt to destroy organized labor.

Congressmen Gary Peters and John Conyers have asked the Government Accountability Office to look into the efficacy of the Emergency Financial Manager Law in Michigan as well as whether or not it has resulted in any conflicts of interest or other improprieties as the law has been enforced.

[They] refer to specific items such as “misuse of federal or other funds”, “efficacy in apply for and obtaining federal grants, loans, and other funds”, prevention of “conflicts of interest, self-dealing or other mismanagement of such funds”, whether actions by EFMs has resulted in “greater dependency actions on federal government programs”, and “an overall assessment of costs, benefits, fiscal or other efficacy of” emergency managers.

Congressman Conyers said in a statement, “It is difficult to identify a single instance where an emergency manager has succeeded in turning around the financial fortunes of a city or jurisdiction. The history of the emergency manager Law in Michigan is replete with fiscal mismanagement and conflicts of interest. In the absence of any sort of checks or balances at the state level, it is vital that the GAO examine the law and its impact, particularly the impact on federal funding.”

Congressman Peters made a similar statement saying, “By focusing only on short-term budgetary patches, emergency managers have failed to address the long-term systemic issues confronting older urban areas. The consistent record of poor results we’ve seen from emergency managers is why I’m joining with Congressman John Conyers in calling for a GAO review.”

Congressman Peters knows about this first hand. He stepped in to make sure the Pontiac Emergency Manager Lou Schimmel didn’t allow his city to miss out on over $1 million in federal dollars over a year ago.

(Eclectablog)​

Apparently, for some reason, the appointed Consul of Pontiac, Lou Schimmel, specifically refused over a million dollars worth of federal HUD funds because, you know, it just would have been bad for the books to have an extra $1.4 million for local housing issues.

This is the kind of thing we're seeing. They're tearing apart the schools, aggravating low-income housing, trying to bust unions, and essentially do everything they can to reduce the quality of life in Michigan. On top of that, there is also that ugly racial appearance.
____________________

Notes:

Bloomberg News. "Michigan judge says Detroit bankruptcy must be withdrawn". Pensions & Investments. July 19, 2013. PIonline.com. July 19, 2013. http://www.pionline.com/article/201...dge-says-detroit-bankruptcy-must-be-withdrawn

EclectaBlog. "Congressman Peters & Conyers summon the cavalry, ask Government Accountability Office to investigate Michigan Emergency Managers". March 22, 2013. EclectaBlog.com. July 19, 2013. http://www.eclectablog.com/2013/03/...-investigate-michigan-emergency-managers.html

 

$1.4 million is not even remotely close to how much local housing requires for infrastractural repair. He refused scraps, because I am sure he asked for much more but instead got bullshit from government.

 

Thanks for the map, let this open minded move in there in order to disperse the parasite, I see the bastard unionist tun out the town . Interesting Dear born population decreased , then increased , thanks to the Muslim. Eventually Suthern trash will go back

 

The Facts Crumble Under the Weight of Your Speculation?

It wasn't meant to be the whole kaboodle. It was a block grant.

U.S. Rep. Gary Peters, D-Bloomfield Township — flanked by Oakland County Commissioner Tim Greimel, D-Auburn Hills, Pontiac City Council President Lee Jones and other city officers — said he prevented Pontiac from missing out on millions of dollars in Housing and Urban Development (HUD) Community Development Block Grant money at risk because of a mismanaged contract signed by Schimmel.

"We had a situation in Pontiac where (Schimmel) was going to shift block grant money away from city to the county," said Peters.

Had the shift occurred, Peters said, it would have meant a "significant loss" of funds — up to $800,000 — to the city.

Peters said Schimmel approved having the county manage Pontiac's block grant funding.

Schimmel disagreed with Peters' statements.

In a written statement almost the same time as the Peters press conference, Schimmel said there was never an intention to lose unspent and uncommitted funds from federal programs, contrary to "statements by others" ....

.... Peters said the HUD funding situation highlights another issue.

"Emergency managers come in and are focused on balancing budgets in the short term, and because of that they make decisions that aren't necessarily in the best interest of the city," he said.

"They're interested in taking things off books to make their job a little easier. That maybe be good for them but it's not good for the city.

"It highlights why we have to have elected officials, accountable to the people."

Lee Jones called the HUD announcement "a victory for Pontiac," he said.

"We need to keep the dollars here."

(Hopkins)​

As Congressmen Conyers and Peters explained to Acting Comptroller General of the United States Gene L. Dodaro in March:

Several recent and troubling events have prompted our request. First and foremost, Lou Schimmel, the emergency manager appointed for the City of Pontiac, risked forfeiting almost $700,000 per yera in federal funds. Mr. Schimmel signed a contract to turn over Pontiac's FY 2012, FY 2013, and FY 2014 Community Development Block Grant (CDBG) funding to Oakland County. Under the contract, these funds, which normally would have gone directly to Pontiac, would have been directed to Oakland County as part of the "Urban County" formula for fund allocation. Because they would no longer be calculated under the "Entitlement City" formula previously used, Pontiac would have missed out on nearly $700,000 per year. Rep. Gary peters intervened and asked HUD, Oakland County, and the emergency manager to reexamine the contract, after which Pontiac's $1.4 million FY 2012 CDBG funding was restored.​

And as Steve Yaccino reported for The New York Times earlier this year:

Unfettered by normal checks, balances and the pressures of getting re-elected, emergency managers here have overhauled labor contracts, sold off city assets and privatized nearly every service Pontiac once provided to citizens. Its police force has been outsourced to the county. Its Fire Department belongs to a nearby township. The city's payroll, once numbering more than 600 workers, now amounts to about 50 public employees. Even parking meters have been sold. All this, and more cuts may be coming, all on the way to balancing the books.​

I mean, sure, these are all facts on the record, but—

"He refused scraps, because I am sure he asked for much more but instead got bullshit from government."​

—quite obviously it isn't as really real as your speculation.

So let's be clear: Your speculation is about as wrong as we might expect. Mr. Schimmel was not asking for "much more", but, rather, trying to find a way to make his job easier by abdicating his responsibilities and passing them to the county. Quite technically, that lesser sum is what he was asking for.
____________________

Notes:

Hopkins, Carol. "U.S. Rep. Gary Peters restores HUD funding to Pontiac, not the county—and slams Emergency Manager plan". The Oakland Press. January 11, 2012. TheOaklandPress.com. July 19, 2013. http://www.theoaklandpress.com/articles/2012/01/11/news/local_news/doc4f0e03168a640912428732.txt

Conyers, John and Gary C. Peters. Letter to the Honorable Gene L. Dodaro, Acting Comptroller General of the United States. March 21, 2013. EclectaBlog.com. July 19, 2013. http://www.eclectablog.com/wp-conte...etter-to-GAO-from-Reps-Conyers-and-Peters.pdf

Yaccino, Steven. "Lessons for Detroit in a City's Takeover". The New York Times. March 13, 2013. NYTimes.com. July 19, 2013. http://www.nytimes.com/2013/03/14/u...in-pontiacs-years-of-emergency-oversight.html