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Wall Street: $474 Million, Detroit: 0

Tyler Durden's picture




 

Submitted by Michael Krieger of Liberty Blitzkrieg blog,

The more time passes, the more skeletons emerge from the closet.  So what’s the punishment for an industry that has literally destroyed countless communities across the American landscape?  Trillions in taxpayer bailouts and even more control over our government.  They say “it would’ve been much worse without the bailouts.”  Tell that to Detroit.  From Bloomberg:

The only winners in the financial crisis that brought Detroit to the brink of state takeover are Wall Street bankers who reaped more than $474 million from a city too poor to keep street lights working.

 

The city started borrowing to plug budget holes in 2005 under former Mayor Kwame Kilpatrick, who was convicted this week on corruption charges. That year, it issued $1.4 billion in securities to fund pension payments. Last year, it added $129.5 million in debt, 9.3 percent of its general-fund budget, in part to repay loans taken to service other bonds.

 

“We have no lights, no buses, poor streets and now we’re paying millions of dollars a year on our debt,” said David Sole, a retired municipal worker and advocate for Moratorium Now Coalition, a Detroit group that fights foreclosures and evictions. “The banks said they need to be paid first. But there is no money.”

 

The debt sales cost Detroit $474 million, including underwriting expenses, bond-insurance premiums and fees for wrong-way bets on swaps, according to data compiled by Bloomberg. That almost equals the city’s 2013 budget for police and fire protection. 

 

Municipal borrowers from the Metropolitan Water District of Southern California to Harvard University in Cambridge, Massachusetts, have paid billions to banks to end interest-rate swaps that didn’t protect them.  

 

As banks were collecting fees from bonds, some targeted city homeowners with subprime loans that led to foreclosures, depressing real-estate values and tax revenue, Sole said. 

 

Last year, Detroit’s water and sewer utility borrowed to pay more than $300 million to unwind swaps.

The only thing that has recovered is Wall Street’s parasitic business model.  They will never stop until they destroy the entire country.

Full article here.

 

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Sun, 03/17/2013 - 23:08 | 3340907 cifo
cifo's picture

Is anyone here sleeping tonight?

Sun, 03/17/2013 - 23:09 | 3340910 CvlDobd
CvlDobd's picture

Girl claims "I'm too tired tonight." So uh, I'll be up.

Sun, 03/17/2013 - 23:33 | 3340978 YBNguy
YBNguy's picture

Isn't Detroit the set for "The Walking Dead"?

Mon, 03/18/2013 - 00:07 | 3341098 darteaus
darteaus's picture

Nope - too depressed.

Mon, 03/18/2013 - 00:46 | 3341179 DJ Happy Ending
DJ Happy Ending's picture

I hear Detroit real estate is booming and there is a thriving startup scene.

Mon, 03/18/2013 - 04:08 | 3341415 TwoShortPlanks
TwoShortPlanks's picture

I wonder what it feels like to live in a country which will die of financial cancer over the coming years.

About 2 years ago I wrote on ZH that business suits will one day be looked upon no better than a Nazi uniform, and that neck ties - after being used for hanging - will be put to good use staking up Tomato bushes.

Let's see if I'm right.

Mon, 03/18/2013 - 07:07 | 3341593 dick cheneys ghost
dick cheneys ghost's picture

Wall St did the same thing to philly...............

 

http://www.citypaper.net/blogs/nakedcity/How-Wall-Street-took-331-millio...

Mon, 03/18/2013 - 10:07 | 3342205 johnQpublic
johnQpublic's picture

philly has a way of shooting themselves in their damn dirty democrat feet.....any city that allows folks to pay themselves a half a million dollars to retire for one day deserves what they get

and with almost zero public outcry.....

the entire state is fucked due to this same kinda crap statewide

houses in the poconos can be had for just about twice the cost of the yearly property tax+association fees

right behind detroit, and it was once a vacation mecca, and now its a mountain ghetto 

Mon, 03/18/2013 - 13:00 | 3343111 IrritableBowels
IrritableBowels's picture

Philthadelphia

Mon, 03/18/2013 - 08:21 | 3341758 Widowmaker
Widowmaker's picture

Damn right you are.

Faggots in pinstripes will join the rank of the Dodo.

Wach money try and "hide" among the decent, like rats in a chicken coup.

Mon, 03/18/2013 - 07:34 | 3341659 Son of Loki
Son of Loki's picture

"There's never been a better time to buy a house," is what they say in Detroit on the radio. Just pull the  boards off the window and stomp out the rats and you'll have a perfect "Fixer-Upper."

Mon, 03/18/2013 - 07:47 | 3341683 tabasco71
tabasco71's picture

+1 for humour

Mon, 03/18/2013 - 09:17 | 3341979 SnobGobbler
SnobGobbler's picture

"thriving startup scene" = the six blocks around the casinos...

Mon, 03/18/2013 - 00:08 | 3341099 Pure Evil
Pure Evil's picture

What!? Only 429 million dollars? That seems like spare change to Wall Street.

I guess the only people left making any money are in the sex and drug trade, and we all know where those profits go, right CIA?

Mon, 03/18/2013 - 06:58 | 3341580 Offthebeach
Offthebeach's picture

If it is between Wall Street and union municipal slugs, I'll take The Street.
Fun Deeetroit. And a hundreds other Dem/union/welfare plantation urban zones.

All these dumps sold mamma down river years ago. Wall Street is just killing off the dead, pulling a trigger on Old Trigger that can't get around anymore.

Empires, cities commit suicide. Wall Street is just trying to stuff the skank sour corpse in a body bag and recover the financed grill and Medicaid titanium hip implants.

Mon, 03/18/2013 - 09:16 | 3341976 IamtheREALmario
IamtheREALmario's picture

"Sold down the river"

The problem is debt. At first the debt allowed huge expansion... until the day it was clear to even the mathematically impaired and parasitically greedy that all debt cannot be repaid. There can be redistribution, but ultimately there must be failure and a re-set.

We all know where debt comes from.

Mon, 03/18/2013 - 07:51 | 3341687 tabasco71
tabasco71's picture

LOL +1

Sun, 03/17/2013 - 23:11 | 3340917 Gidas19
Gidas19's picture

No, I'm waiting on my bank to open.

Sincerely,

 

Cyprian

Sun, 03/17/2013 - 23:18 | 3340940 permafrost
permafrost's picture

After you bulldoze your way into your bank, do you want to head over to the Audi graveyard? I'll pay for gas.

Sun, 03/17/2013 - 23:29 | 3340970 holdbuysell
holdbuysell's picture

Nice linking of multiple articles. Well done.

Sun, 03/17/2013 - 23:41 | 3340994 yogibear
yogibear's picture

Those in Cyprus need to head to Brussels to serve some justice!

Sun, 03/17/2013 - 23:52 | 3341000 Dr. Engali
Dr. Engali's picture

I'll be sleeping peacefully tonight. After the events in 08 I took everything out of the system knowing full well this is where we were headed. I only keep enough in the system to pay the bills, everything else, that isn't at the bottom of a lake, I can get my hands on in a moments notice.

Mon, 03/18/2013 - 00:05 | 3341084 darteaus
darteaus's picture

What's your address?

Mon, 03/18/2013 - 00:30 | 3341111 Dr. Engali
Dr. Engali's picture

1600 Pennsylvania ave..... Better be careful though I sleep with an AR by the bed stand an a 9 mil under my pillow. My wife sleeps with a Remington 870 on her side of the bed.

Mon, 03/18/2013 - 03:16 | 3341370 A Nanny Moose
A Nanny Moose's picture

Your wife is a Wookie?

Mon, 03/18/2013 - 00:21 | 3341128 Pseudo Anonym
Pseudo Anonym's picture

smart.  all those who accepted the fact that the hofjuden run fractional reserve central banking is a 2000 year old money changer scam of theft, usury and enslavement by debt took their money out of the fraudulent banking system and invested in other kinds of money, tangible money.

Mon, 03/18/2013 - 00:33 | 3341149 toady
toady's picture

That's my situation too, except I've slipped a little. I've let an extra 10k accumulate. Now I'll be up all night until the bank opens ...

Mon, 03/18/2013 - 00:06 | 3341087 darteaus
darteaus's picture

Might as well nod off then, it's going to be a while.

Sun, 03/17/2013 - 23:25 | 3340959 brettd
brettd's picture

Sleep?  The best show in town is watching these debt-rat-politicians destroy the things they profess to cherish.

Sun, 03/17/2013 - 23:26 | 3340963 fudge
fudge's picture

it's not night everywhere ,i got 12hrs to go before sleep .. lots o' charts to watch :-))

 

Sun, 03/17/2013 - 23:58 | 3341057 neutrinoman
neutrinoman's picture

Out of Ambien - no.

Mon, 03/18/2013 - 00:36 | 3341155 outamyeffinway
outamyeffinway's picture

I live near Detroit and I'll tell you, it's pretty terrible. The roads are literally coming undone. Inner city residents are fleeing en masse much to the chagrin of the suburbs. I was involved in an inner city gardening project and the only people who showed up were white people from the suburbs. Anyone who gets mad at that statement, fuck off, come here and live. I don't want to hear it.

"Detrois" as we call it is a war zone. I was in South America last year and I tell you, some of the parts of Lima, Peru, are indistinguishable from "Detrois" save a few faces.

Currently making plans to get away and I can't wait. Hopefully it works out.

Mon, 03/18/2013 - 00:45 | 3341176 DoChenRollingBearing
DoChenRollingBearing's picture

Without doubt I would prefer living in Lima.

Mon, 03/18/2013 - 01:46 | 3341260 outamyeffinway
outamyeffinway's picture

I feel I should say there were some very beautiful parts of Lima(ish) that I would have been comfortable staying.

Mon, 03/18/2013 - 03:18 | 3341372 A Nanny Moose
A Nanny Moose's picture

My only question: Who has the best Mountain Biking, and rafting? Peru, Chile, or Argentina.

Where would I find it easiest to traverse among the countries?

Mon, 03/18/2013 - 01:06 | 3341213 Meat Hammer
Meat Hammer's picture

I had the unfortunate experience of going to the Detroit area for business in 2007.  I'm a huge baseball fan and always wanted to see Tigers Stadium so I ventured downtown.  I've never seen such depression and ruin.  The paint was peeling off of the stadium; there were boarded up skyscrapers downtown.  People think I'm exaggerating when I tell them.  

Mon, 03/18/2013 - 01:17 | 3341221 akak
akak's picture

I am from Detroit originally, and in fact was just back there last month, and there are NO WORDS that can describe the depth of the destruction, ruin, decay, and general physical and spiritual rot that that city has seen in the last 50 years.  It is simply beyond explanation or exaggeration.  Only by seeing it with one's own eyes can one even begin to appreciate it ---- but without knowing just what a prosperous and vibrant economic and industrial powerhouse it was for many years, less than one lifetime ago, one can only superficially appreciate the magnitude of the ruin of Detroit, even by seeing it in its decadence today.

Mon, 03/18/2013 - 01:35 | 3341247 Totentänzerlied
Totentänzerlied's picture

Your plane was diverted, you were in Manhattan the whole time!

Mon, 03/18/2013 - 02:25 | 3341284 TruthInSunshine
TruthInSunshine's picture

I went to Detroit on a freebie trip a few short years ago that an acquaintance couldn't use (who am I to decline an excuse to skip working and fly in a fully stocked bar Learjet) to see the Tigers & Yankees face off in the playoffs (I cheered for the Tigers only because I hate nearly everything about New York) & Comerica Park (I think that's the name of it) is fairly new and actually one of the nicest major league stadiums that I've been to (and I've been to quite a few).

There's also a new, very modern football stadium immediately adjacent to the baseball stadium where the hapless Lions play, but I didn't see the inside (obviously).

As to the rest of the city, I didn't see much of it since I was only there for a night and 1/2 a day, and there are so few even decent hotels in the actual city I ended up staying in one by the airport, but from what I did see, the downtown area is WAY smaller than what I had anticipated, being MAYBE 1/10th as large as Chicago and MAYBE 1/4 the size of Toronto in terms of actual proper skycrapers or pedestrians, and I did notice several extremely large industrial type buildings of WWII (maybe even WWI) age that literally looked like they had been carpet bombed while driving along I-75 and I-94 on my way to the airport.

I'm not sure if the former criminal mayor had yet been indicted or convicted of 2,085 counts of federal crimes as of that time, yet.

Mon, 03/18/2013 - 03:58 | 3341411 MisterMousePotato
MisterMousePotato's picture

Thirty years from now, akak will instead write:

I am from America originally, and in fact was just back there last month, and there are NO WORDS that can describe the depth of the destruction, ruin, decay, and general physical and spiritual rot that that country has seen in the last 50 years.  It is simply beyond explanation or exaggeration.  Only by seeing it with one's own eyes can one even begin to appreciate it ---- but without knowing just what a prosperous and vibrant economic and industrial powerhouse it was for many years, less than one lifetime ago, one can only superficially appreciate the magnitude of the ruin of America, even by seeing it in its decadence today.

Mon, 03/18/2013 - 05:59 | 3341531 negative rates
negative rates's picture

I can explain how and why Detroit is a goin in the shitter. That's easy. 

Mon, 03/18/2013 - 10:34 | 3342310 sunnyside
sunnyside's picture

The elephant in the room does not like to be talked about.

Mon, 03/18/2013 - 08:55 | 3341776 Widowmaker
Widowmaker's picture

Oh there are words;

"Record bonuses" fits like a glove in skank bank, NYC.

Mon, 03/18/2013 - 00:47 | 3341182 squid virtuous
squid virtuous's picture

might as well get some zzz's - the PPT is on the case, will have us back to -10.0 by the open, and then you can still BTFD...

Mon, 03/18/2013 - 04:24 | 3341435 dolph9
dolph9's picture

I sleep very soundly every night.  My metal is underwater, my scuba gear is ready and my soul is at peace.

Sun, 03/17/2013 - 23:13 | 3340922 Smegley Wanxalot
Smegley Wanxalot's picture

Yeah but they say Wall Street leads by about 9 months so by Christmas time Detroit should be a vibrant beautiful city again, right?

Sun, 03/17/2013 - 23:16 | 3340928 TruthInSunshine
TruthInSunshine's picture

It's larger than Wall Street-Financial-Banking Parasite Complex vs Detroit; it's Wall Street-Financial-Banking Parasite Complex -vs- the United States.

And it's a hell of a lot larger parasitic drain than a half a billion dollars.

The Wall Street-Financial-Banking Parasite Complex has a parastic IV and is suckling on trillions upon trillions of what Chuck Schumer gibly refers to as "flyover country's" money.

Sun, 03/17/2013 - 23:16 | 3340933 palmereldritch
palmereldritch's picture

FRNs: The Crack of Currency

Sun, 03/17/2013 - 23:36 | 3340982 otto skorzeny
otto skorzeny's picture

you have to differentiate the "citizens of the US" instead of the "govt of the US"

Mon, 03/18/2013 - 00:06 | 3341088 TruthInSunshine
TruthInSunshine's picture

Especially true now that the U.S. form of government is explicitly and irrefutably "of, by and for private banking interests..."

Sun, 03/17/2013 - 23:17 | 3340936 Lordflin
Lordflin's picture

The drums are beating louder and faster... Can you hear them?

Sun, 03/17/2013 - 23:19 | 3340946 permafrost
permafrost's picture

So without government money New York (a one industry town) is Detroit?

Sun, 03/17/2013 - 23:21 | 3340950 brettd
brettd's picture

Here's an idea for Detroit/Jefferson Co./ILL/CA/USA:

Don't spent more than you make and you don't need a bank!

Want a new landfill?  Save for 4-5 years and buy it.

Want Pensions?  Pay as you go.

Want a new firehouse?  Save for a few years and build it.

The added bonus in this leadership style is that when you've spent 4-5 years planning a firehouse, 

you'll be very focused and buttoned-up when you DO build it!

 

Sun, 03/17/2013 - 23:43 | 3340993 wee-weed up
wee-weed up's picture

Liberal socialists run all of the worst-run big cities in America.

Mon, 03/18/2013 - 01:33 | 3341245 James_Cole
James_Cole's picture

 

Here's an idea for Detroit/Jefferson Co./ILL/CA/USA:

Don't spent more than you make and you don't need a bank!

Want a new landfill?  Save for 4-5 years and buy it.

Funny I just posted about Jefferson the other day as a counterpoint in an argument about people demanding too many services and not being willing to pay for them. 

There's the general media presentation (read: bullshit) of what happened and then there's the actual crime infested / JPM corrupted (multiple people went to jail and JPM paid almost $1B settlement) version of what happened.

http://www.bloomberg.com/news/2011-09-16/jefferson-county-alabama-s-path...

Also worth noting that the former mayor of Detriot in this case is on his way to jail & banks have their grimy hands all over this mess (as usual).

 

Sun, 03/17/2013 - 23:44 | 3341010 otto skorzeny
otto skorzeny's picture

I live in a small Il suburb of Chicago that has 2 shiny new firehouses staffed by full time firefighters-this in a town that until a few years ago had a volunteer force.

Sun, 03/17/2013 - 23:57 | 3341051 glenlloyd
glenlloyd's picture

that's the core problem everywhere...people pledged their future income for purchases in the present that they now can't afford...and in reality never could, especially at inflated prices.

no one wants to defer anything until they have all the money they need to own it.

just think how worthless all these overpriced automobiles would be if there were no credit. it used to be that if you drove a nice car it meant you had something saved, now a nice car means nothing because any schmoe can (and does) borrow to drive it in the here and now.

people who don't use credit think a lot harder before forking over cash for something...because they see the loss of cash as significant. money savings takes on a whole different meaning when you aren't swiping a card through a machine.

Mon, 03/18/2013 - 00:38 | 3341160 blindman
blindman's picture

there the devil of fiat inflation, the saver doing
price discovery with the dreams of speculating/
dreaming hammers in the hands of young children, wide
eyed and drunk on the opiate moar. the units, slave passes
, another fools debt, some other asses notes.

Mon, 03/18/2013 - 01:40 | 3341251 TruthInSunshine
TruthInSunshine's picture

"...that's the core problem everywhere...people pledged their future income for purchases in the present that they now can't afford..."

"...there the devil of fiat inflation, the saver doing
price discovery with the dreams of speculating..."

Confidence Fairy Soweth & Reapeth

[W]ithout exception, throughout history, the masses do not understand there is a crisis until well after it has already begun, and they've already committed to many purchases, indebtedness and other forms of dis-saving, that they wouldn't have committed to had they known accurate information sooner.

Hence, the "confidence fairy," which governmental employees, politicians and business spokespeople all actively perpetuate in their own methods and by various tactics, is a serial and mass killer of efficient markets and the ability to engage in rational economic behavior (as it severely distorts essential economic information that is relied upon by economic and market participants).

Mon, 03/18/2013 - 01:39 | 3341250 Libertarian777
Libertarian777's picture

or you could be a lib-tard Californian legislature... enact new taxes in 2013 (not to mention the federal government etc). so everyone pulls their taxes forward towards the end of 2012. (actually taxes were retroactive to beginning of 2012 for california... but the point remains).

BAM..Jan 2013 has what seems to be, a massive 'surplus' ($6bn they said!).

Now they realise...oops, you can't trend that out, its the golden goose's last egg.

But during Jan/Feb they were discussing how they should 'spend' this '$6bn' extra (please note, no mention was made of paying down the debt... just how to spend this $6bn 'surplus').

It's fkn crickets here now.

 

Mon, 03/18/2013 - 07:56 | 3341697 onthesquare
onthesquare's picture

If you build it they will come

Sun, 03/17/2013 - 23:22 | 3340951 SillySalesmanQu...
SillySalesmanQuestion's picture

Wall St, Fed, ECB and banksters...10,000,000,000. Cyprus 0

Sun, 03/17/2013 - 23:27 | 3340965 goldfish1
goldfish1's picture

You're missing three zeroes.

Sun, 03/17/2013 - 23:22 | 3340953 Dr. Engali
Dr. Engali's picture

At some point in time people are going to say enough ..... and no amount of circuses will stop the bloodshed.

Sun, 03/17/2013 - 23:39 | 3340989 otto skorzeny
otto skorzeny's picture

alot of people are on the same page-alot of them are lingering around walmart's empty ammo cases with a glazed look in their eyes

Sun, 03/17/2013 - 23:43 | 3341008 Dr. Engali
Dr. Engali's picture

I see it all the time. The gun department will be full of people but there is nothing to buy.

Sun, 03/17/2013 - 23:46 | 3341018 otto skorzeny
otto skorzeny's picture

happened to be in there today and got a little stocked-was soon gone even w/ 3 box per customer limit-plus it was all ukranian made stuff.

Sun, 03/17/2013 - 23:25 | 3340960 holdbuysell
holdbuysell's picture

This is what happens when leaders provide for the citizens, rather than encourage them to provide for themselves. The able will leave and the unable will stay and their ability to provide for themselves will atrophy to the point that they can no longer sustain themselves without help.

This is what has happened to Detroit over the past few decades.

Now, with every stat on nationwide government support on the rise (food stamps, welfare, disability, etc.), it’s not hard to use history as a guide to see where the nation is headed.

Sun, 03/17/2013 - 23:30 | 3340974 goldfish1
goldfish1's picture

Leaders providing for the citizens? I think you mean leaders stealing everything for themselves and throwing the citizenry bones to keep them placated.

Mon, 03/18/2013 - 00:34 | 3341152 Anusocracy
Anusocracy's picture

Foraging is not a successful economic strategy.

Mon, 03/18/2013 - 00:41 | 3341167 Crash Overide
Crash Overide's picture

I feel optimistic right now even though everything seems to be falling apart. Something about being the darkest before the dawn, I feel a new global renaissance is about to take place.

Mon, 03/18/2013 - 00:48 | 3341185 DoChenRollingBearing
DoChenRollingBearing's picture

Hear you, but still too early.  Wait two years or so.

Mon, 03/18/2013 - 09:27 | 3342021 j0nx
j0nx's picture

Won't happen. War will come before it gets that far. And this war will be the one that Einstein talked about.

Sun, 03/17/2013 - 23:29 | 3340971 blindman
blindman's picture

it is the proper funk tioning of the funky
system, we have exposed and disgusted it repeatedly.
no one heard it the first second or third time.
we will pay and pay till the the end?
the end

Mon, 03/18/2013 - 07:58 | 3341701 onthesquare
onthesquare's picture

This is the end...no safety or surprise; the end.

Sun, 03/17/2013 - 23:37 | 3340983 morning_glory
morning_glory's picture

The sooner the parasites start eating each other rather than their host the better!

Sun, 03/17/2013 - 23:41 | 3340996 otto skorzeny
otto skorzeny's picture

did this governor take over detroit to make sure that the debt is made whole? also-I saw a pole that Detroit would reelect Kwame if the election were held today-that says it all.

Sun, 03/17/2013 - 23:43 | 3341005 lolmao500
lolmao500's picture

Burn all banks in Detroit to the ground, that'll send them a message.

Sun, 03/17/2013 - 23:59 | 3341065 kchrisc
kchrisc's picture

The guillotines are on order.               hujel

Mon, 03/18/2013 - 08:00 | 3341704 onthesquare
onthesquare's picture

Start watching for old ladies knitting

Mon, 03/18/2013 - 00:00 | 3341066 neutrinoman
neutrinoman's picture

Must-read on DE-troit:

http://blogs.the-american-interest.com/wrm/2013/03/15/detroit-dems-enric...

What I keep saying: these so-called "progressives" ARE the party of plutocracy. It's Clinton's fault; Obama just resurrected it and went further.

Mon, 03/18/2013 - 00:10 | 3341106 BullyBearish
BullyBearish's picture

Weimar's a comin'...hyperinflation at a store near you!

Mon, 03/18/2013 - 00:17 | 3341119 steve from virginia
steve from virginia's picture

 

 

 

Wall Street + car business = national suicide.

 

Of course, one needs the other desperately. No loans = no car sales as today's car is priced well out of the cash- reach of 95% of American workers.

 

Driving the car does not produce value for the car buyer, it is simply a toy. The car business itself never did much for the home city, only sucked the life out of it.

 

Wall Street holds Detroit hostage, what is there to do about it?

 

Nothing, the citizens are powerless, they have no real say in what is done to them ... what has been done to them.

Mon, 03/18/2013 - 01:41 | 3341254 Totentänzerlied
Totentänzerlied's picture

Then why are they still buying cars? Because they add no value? Driving to one's place of work so one can do one's job is not value-additive for the worker? No one commutes to work? We're all just out joyriding with gas at $4? You're the one who said "American workers". Who are your arguments designed to fool? Toddlers?

Mon, 03/18/2013 - 07:42 | 3341671 Peterus
Peterus's picture

So... what percentage of american families has less than 2 cars? How much of these sales by GM are made to these people and how much to those that switch thier previous cars for newer model, or buy 3rd or 4th?

First car - OK there will be very productive uses for it. Especially in a country that built everything for cars, has extremely sprawled cities with poor public communication (especially medium cities, or outskirts where metro doesn't reach).

Second car - well it's likely both adults work in different places, much easier to lend it to kids, still some benefit that is not just additional comfort.

Ofcourse, both of these cars are relatively small and efficient, or old and were really cheap to buy. This is pretty much where "productive value" ends, anything over is additional comfort, prestige etc. Nothing wrong in that, though I don't really see the virtue in enabling more comfortable or prestigious cars to people that can't even pay for them fully from their own money.

Mon, 03/18/2013 - 06:04 | 3341533 negative rates
negative rates's picture

You have the power Dorothy, it is in you, just open your mind and let the truth  flo to it.

Mon, 03/18/2013 - 06:56 | 3341576 overmedicatedun...
overmedicatedundersexed's picture

look around any city in USA and see getto negroids in brand new GM cars talking on obuma free phones, no money down, 10 yr pay offs, keepen peace in the hood.

Mon, 03/18/2013 - 00:42 | 3341171 blindman
blindman's picture

George Harrison & Bob Dylan - A Hard Rain's Gonna Fall - Concert for Bangl
http://www.youtube.com/watch?v=ffv2wdm2rjg

Mon, 03/18/2013 - 00:43 | 3341173 q99x2
q99x2's picture

The banksters want their money tell them to come to the middle of the wasteland at midnight to pick it up. 

Mon, 03/18/2013 - 01:28 | 3341241 ozzz169
ozzz169's picture

Who is the bigger crook, the bankster that takes advantage of the idiot liberal, or the idiot liberal that runs his city/state/country into the ground because they really dont have a F!@#in clue what the F!@# they are doing?

Mon, 03/18/2013 - 08:21 | 3341759 Kirk2NCC1701
Kirk2NCC1701's picture

A: one is a crook, the other a fool/tool.

Mon, 03/18/2013 - 01:18 | 3341230 blindman
blindman's picture

Where have you been, my darling young one ?
http://www.youtube.com/watch?NR=1&v=-ZsweuaqAf8&feature=endscreen

Mon, 03/18/2013 - 01:51 | 3341270 Kirk2NCC1701
Kirk2NCC1701's picture

Drove around Detroit with two finance types last week.

Says one: This place looks promising with the rebuilding of former glory after a war. It needs people with vision, common purpose and a work ethic.

Says the other one: Yeah, this place needs a hundred thousand Israeli settlers.

Said I (jokingly): But not too close to Dearborn, or all hell will break loose.

Mon, 03/18/2013 - 05:21 | 3341485 Vuke
Vuke's picture

>> hundred thousand Israeli settlers??<<

 

Are you mad?  What Israeli will come without billions of dollars in support from Washington?  Better get AIPAC on that one.

Mon, 03/18/2013 - 08:55 | 3341877 NotApplicable
NotApplicable's picture

War?

Mon, 03/18/2013 - 01:59 | 3341274 Meat Hammer
Meat Hammer's picture

I look forward to OWS members and Tea Party patriots taking turns kicking the chairs out from underneath the swinging bankers. 

Mon, 03/18/2013 - 03:41 | 3341276 rivoniaboy
rivoniaboy's picture

Detroit is what happens when you have white flight.

 

Mon, 03/18/2013 - 07:38 | 3341665 Umh
Umh's picture

It's more like the cargo cult. They wore suits and attended meetings without realizing that it takes more than that.

Mon, 03/18/2013 - 12:17 | 3342914 Ident 7777 economy
Ident 7777 economy's picture

 

 

rivoniaboy: 

" Detroit is what happens when you have white flight. "

After the '67 riots it has been all downhill:

http://en.wikipedia.org/wiki/1967_Detroit_riot

 

"Motor City Burning - Part One"

http://www.youtube.com/watch?v=WybEb13jysk

This video is part one of a sixteen part documentary I produced to commemorate the 40th anniversary of the 1967 Detroit riot. The documentary aired on WILS AM 1320 in Lansing, Michigan (USA) on July 24 and 25, 2007.

 

 

Mon, 03/18/2013 - 02:54 | 3341338 michael_engineer
michael_engineer's picture

Detroit was the center of the universe when I grew up there in the 60s.

Then the center shifted to Seattle / Silicon Valley.

Now it shifted again to anyplace my two children are.

Mon, 03/18/2013 - 12:23 | 3342940 Ident 7777 economy
Ident 7777 economy's picture

 

 

 

Documentary/Detroit promo (NOT pron) film: 

 

 

DETROIT: City on the Move (Part 1) (1965)

 

 

http://www.youtube.com/watch?v=vUbsw28PCpA

 

It once held such promise ... 

 

Mon, 03/18/2013 - 04:06 | 3341418 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

Private Frazer: "We're doomed Captain Mainwaring"

Mon, 03/18/2013 - 04:11 | 3341420 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

...and further to my Dad's Army reference (albeit in absolutely non-sequitur fashion...or maybe not), if an election were held tomorrow in USSA, the Kenyan would STILL win> Truly, we are doomed.

Mon, 03/18/2013 - 04:21 | 3341431 dolph9
dolph9's picture

America's gone terminal.  The Jew bankers keep lending money to the blacks and the blacks never pay it back, so they lend more money to them.

Pay up, whitey.

Mon, 03/18/2013 - 04:44 | 3341450 NuYawkFrankie
NuYawkFrankie's picture

Detroit deStroit.

Mon, 03/18/2013 - 04:46 | 3341451 Mr. Hudson
Mr. Hudson's picture

Detroit will be the first American city to be burned to the ground with rioting and looting.

Mon, 03/18/2013 - 08:13 | 3341736 Bicycle Repairman
Bicycle Repairman's picture

That already happened.

Mon, 03/18/2013 - 06:37 | 3341559 Oldwood
Oldwood's picture

Fear not. It is all part of the evolutionary plan. We will likely soon be extinct as we obviously are bent on suicide.

Mon, 03/18/2013 - 07:02 | 3341589 Downtoolong
Downtoolong's picture

swaps that didn’t protect them

Oh, we're sorry, we thought you understood, it was our risk you were managing, not yours.

Your friendly TBTF Banksters

Mon, 03/18/2013 - 07:40 | 3341667 22winmag
22winmag's picture

Throwing the baby out with the bath water.

Mon, 03/18/2013 - 08:00 | 3341706 venturen
venturen's picture

move toWashington, DC. 2% unemployment, money printing press

Mon, 03/18/2013 - 09:58 | 3341722 pine_marten
pine_marten's picture

Detroit is just ruin concentrated.  If you drive through most rural areas you see the same thing.  Empty businesses and homes for miles on end.  The corporate farming model did for rural America what the socialists did for the cities.

Mon, 03/18/2013 - 09:31 | 3342033 InjuredThales
InjuredThales's picture

Really? We're blaming Wall Street for the terrible decisions of local, state and national governments now?

Sorry, but they were suckers playing with other peoples' money and they got duped.  That's what happens to suckers: it's just a shame it was our money and not theirs that Wall Street raked in. I'll start feeling sorry for politicians when bankers turn honest.

Mon, 03/18/2013 - 11:32 | 3342683 Mr. Hudson
Mr. Hudson's picture

There is only one state that is not under the thumb of Wall Street, and that is North Dakota. It's been that way since 1919, when North Dakota told Wall Street where to stick it. Now, it's too late for any state, or local government, to pull out of any entanglement with Wall Street. Wall Street owns America.

Mon, 03/18/2013 - 12:29 | 3342972 Ident 7777 economy
Ident 7777 economy's picture

 

 

 

InjuredThales:

" Really? We're blaming Wall Street for the terrible decisions of local, state and national governments now? "

Yup.

 

That would be some of the lesser knowledgable participants here on ZH ...

 

Mon, 03/18/2013 - 10:20 | 3342258 strayaway
strayaway's picture

A couple of ideas for Detroit given its present situation:

Individual or collective homesteading - Detroit has no cash to pay for its pension debts. Detroit, however, owns a lot of real estate. Why not offer the unions or union members parcels or huge tracts of land in lieu of the cash that it doesn't have? Think of this as homesteading. Imagine an area where retired police and firemen were given free homesteading lots for themselves and to market. The Romans invited the Croats to come and settle in the Balkans. They were a warlike tribe.They were given the land because the Romans knew they would defend the edge of the Empire to defend their own land. A retired police neighborhood in Detroit would similarly discourage breakins and muggings in such an area.

Alternatively, the unions, whose members would take a pension cut in bankruptcy, could be given a few hundred acres here and there to develop large 5,000 - 50,000 member self sufficient resident gated communities with groceries, Targets, private municipal services, doctors offices and other municipal services. Since every apartment building is a gated community, this is not a wild idea. Such gated communities would also pay some taxes to the City of Detroit so it would be a win-win situation for both the City and the unions.

If the idea of giving away hundreds of acres seems far fetched, go to Google maps and drag the little yellow man into different areas of Detroit for a "street view". Detroit is presently almost giving away land for tree farming to big monied interests. It might as well, instead, pay down its obligations with the same land.  When there is nothing left of Detroit to destroy, the rats will move on to the suburbs and the monied interests will be able to redevelop Detroit for fleeing suburbanites. Its like the village exterminator letting loose what he catches in his mome village to insure a future profit stream.

Mon, 03/18/2013 - 11:28 | 3342658 Mr. Hudson
Mr. Hudson's picture

Great idea! But, the bankers will never allow it. Detroit is destined to be one, gigantic FEMA camp.

Mon, 03/18/2013 - 13:16 | 3343190 William.M.Tweed
William.M.Tweed's picture

Beautiful Mount Airy Lodge all you have to bring, is your love of everything!

 

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