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Detroit Bankruptcy Imminent
Following the State's takeover of Detroit's finances in March, it seems the end is growing 'nigh'er for the troubled city. According to the WSJ, Kevyn Orr, Detroit's emergency manager, plans to call unions and creditors to a meeting in mid-June to lay the groundwork for a bankruptcy within a matter of months. The meeting is designed to restructure the long-struggling city's liabilities of over $17bn and is an attempt to "have a mature and sober discussion" of repayment terms following its delayed payment in April of $226 million on pensions and other obligations. Several unions said they are willing to come to the table, but believe "it's a scare tactic." Up to now, Gov. Snyder and Detroit elected officials have said they want to avoid using bankruptcy (Detroit would be the biggest muni filing ever) to clean up the city's mess. But in recent days, their positions have softened, adding that, "I don't want to go to bankruptcy, but I do know that it is a strong possibility." Mr. Orr's office confirmed it was evaluating the potential sale of prized assets such as the artwork at the Detroit Institute of Art, a collection potentially worth billions.
Via The WSJ,
Kevyn Orr, appointed by Michigan Gov. Rick Snyder in March to take control of the long-struggling city, plans to use the meeting to present a detailed restructuring plan for Detroit's liabilities, which he says total about $17 billion.
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Over the coming weeks, Mr. Orr is expected to ask the city's largest unions, pension funds, creditors and bondholders for concessions. It is unclear whether such moves could stave off bankruptcy - or pave the way for it by serving as a template for a court-supervised reorganization.
A bankruptcy filing likely would be the largest ever by a U.S. municipality in terms of debt outstanding, surpassing that of Jefferson County, Ala.
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On average, since 2008, Detroit has spent $100 million more a year than it collected in taxes and other revenue.
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On June 15, the city is due to make a debt payment estimated at more than $30 million, according to a person familiar with the matter. It is possible Mr. Orr will decide not to make the payment to conserve cash
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Detroit had $64 million cash on hand in April but owed $226 million in payments on pensions and other obligations, forcing the city to delay paying its bills to stay afloat,
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Union representatives criticized city leaders for failing to implement cost-saving reforms. Some dismiss the idea that Mr. Orr might push Detroit into bankruptcy.
"I think it's a scare tactic," said Ed McNeil, assistant to American Federation of State, County and Municipal Employees Council 25 President Al Garrett, the city's largest union for municipal workers. "It's been something like six times that the city was going to go bankrupt. But it never happened and they never had a payless payday."
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Mayor Bing said in an interview last week, "I don't want to go to bankruptcy, but I do know that it is a strong possibility."
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Mr. Orr sharpened the debate about bankruptcy in late May when his office confirmed he was evaluating the potential sale of prized city assets, including the artwork at the Detroit Institute of Art, a collection potentially worth billions.
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Lol, my street harassment meter is tipping on wtf levels. Just because you're paranoid bro(don't mean they're not after you), i can't even count the number of instances in the past week, really better start censoring myself.
But I'm "crazy" even though if i videotaped it it would be "evidence".
Serious, self posts like this make me pause, but at this point, not really.
When I was a kid downtown Windsor was a lively vibrant place. The sidewalks were filled with people. Not any more. Ouellette Ave in windsor is boarded up and deserted. All of the productive, job producing, wealth producing entrereneurs were driven out years ago. All that remains are the poor and destitute standing on street corners with signs that say "WILL WORK FOR FOOD". Windsor, the asshole of Canada, joined at the hip with Detroit. The worlds largest sphincter valve.
Socialism is everyones enemy.Did someone call me? Where's the classy nude girls? I need locations!
nmewn, a friend and I visited Windsor in '78 and we were presented with a choice at the first bar we came to: one door said men; the other, women with an escort. Which door do you suppose two american heterosexual males would enter? That's right. We sat down and were promptly told that we had to take a seat on the other side of the rope where there were all men. We learned a weird cultural lesson.
Known to locals as the 'Windsor Ballet."
Yes, the "Windsor Ballet"...........fine looking ladies.......
Gonna be real interestin' see what the WhoozieHouse do wit diz one.
Lotta Dem-o-Kratik pleebians to be served with this Never Pass Up a Good Crisis sit-sheee-a-shun.....
Gotta fight for what's right, ya' kno'
This has GOT to be Bullish somehow! Would this bankruptcy be seen as 'green shoots' for the economy?
I'm not a die hard art lover but I cringe to think where some of their beautiful art from the museum is going to wind up. :/
What, you don't want bankers to have nice things?
+1 crimsonavenger
It's gonna end up in the hands of the unions as a pay-off - sorta GM style. Creditors gets screwed and unions made whole - everyone is happy.
do they "have poop on bunny" there, i ain't seen that since minneapolis. but i still have my poop bunny. burn it all, all the art, let them eat lettuce.
http://www.moma.org/explore/inside_out/2013/03/29/dieter-roths-bunny-lea...
nmewn, thank you for that link. I sent it to my fellow city council colleagues. I love this job and I don't give a fuck about reelection. I call it as I see it. Surprisingly, when I talk reality to the 70% majority hispanic population of my ward about the long term implications of open borders and perpetual amnesty, they actually seem to get it. I suggest they appreciate their current situation and do everything they can to preserve it. Thank you, sir.
How many cities have been on the brink since 2008? Some multiple times. OBombEm and da boyz send a check and problem solved.
I sympathize. But not this time. Not in this situation. Not in this city.
If it was Los Angeles or New York, sure, they would find a way. But even marxists know when to quit at a certain point. That point is Detriot.
sell it to the chinese
Send the DIA collection to auction. There is magnificent art in there. I will be a bidder on the lower end stuff for sure. This art needs to be saved before the city around it collapses.
The stuff in there now is probably all fake. Somebody fenced off the real stuff long ago.
Kinda like hoping you will find real gold in Ft Knox.
One can only hope.
How much of that museum's art will wind up hanging in the livingrooms and mancaves of Detroit city officials and union leaders?
There will soon be news of art heists.
Get it over with already. In fact get this whole freaking charade over with so we can start anew. Enough with the lies, deceit and Bullshit Amerika.
Big things have small beginnings
This is the down side to corruption and regulatory capture.
O, and synagro is of course now bankrupt - Carlyle (ticker:CG) wants to unload them for about 1/2 what they paid (a cry for help/admission this was a bonehead buy if I ever heard one).
And last, this is what Synagro is all about .
Carlyle AKA the Bush Crime family got duped? Oh thats great to hear.
Simply re-finance this shit-hole with Robert Mugabe's assistance. He's always flush with cash. Chains minus da hope. Dem "brovas" done fucked up.... Sad. CB
BING - O
hot load for the Pension benefit guarantee corp comming up......................... maybe they can bail in Cleveland, Shittsburg, and Eerie while they are at it....
I would say Shitcago too but its already been taken over....
Bankruptcy imminent. Is it too early for a drink?
So the "Red" in "Red Wings" refers to the city's balance sheet?
Who knew....
Don't forget the Detroit Lyings.
Maybe they can rename this Pistons, the "Pissed-ons."
Damn Wings, June is never the same without them.
All I want to know is, who paid for the stadium?
Why the fuck should these thieves and crooks maintain an art collection? That and similar luxuries should have gone long ago. It galls the shit out of me the things these doofi will spend money on. Even when they don't have any.
The art You speak of was mostly donated by the great industrialist of bygone era for the betterment of their fellow citizens. Donated so that all could enjoy.
It fucking kills me to think these great works will be sold to private collectors so that a bunch of parasitic union shits can collect a pension check that few if any deserve.
This should be filed under the pawning of merca
This is good. Soon the slate will be wiped and Detroit can start borrowing heavily again!!!!! The American way!!!!
I hate to be that Bankruptcy Judge handling Detroit's Bankruptcy case.
Why? Job security. That case will drone on for years.
Ooops, did I say drone? Oh, shit...
The Duke of New York A Number One.
I just hope the bloodsuckers from American Tax Funding are stuck with lots of Detroit properties that are complete shit. ATF (catchy acronym, there, guys) buys tax liens on individual properties from municipalities across the country. Been bailing out cities for years. Black hole for these fvckers and deservedly so. Funded largely by Wells Fargo.
How's that sound, Mr. Buffett? Due dilligintz, my bitchez.
Girl in "Chock Full O'Nuts": You're a cop!
Snake Plissken: I'm an asshole...
And yet the property taxes are outrageous: 10% of appraised value. Gotta keep the leeches on the payroll.
When the final shoe drops, the Unions will have taken the wealth from every group they represent. Reprehensible thugs!
It'll be interesting to see how the unions make out in the coming Detroit bankruptcy. I hope the courts bust their ass. I wonder if that fat bitch running the Chicago Teacher's Union is watching? :)
Stupid union rats up there, sheesh. So since the city hasn't gone BK yet, then it never will??
So glad I left that shithole. I even despised the suburbs.
Scare tactic? Isn't that what the baker's union said when Hostess claimed they would go bankrupt?
Ding ding ding!!!
Everyone there should get wired up with Google Glass and Go Pro cams.
Have like a live-streaming SHTF reality show.
They could call it EBT-SHTF-TV.
Maybe a mixture of Hunger Games and the Loto.....
Meeting with the unions and creditors (bankers), missing something thousands of homeowners, ooooo ya-the people that are your bosses.
The residents should sue both parties under RICO.
I say let it happen. Go bankrupt and start to let some reality seep into this soap opera.
So they had money for art but not to pay their pensions?
And to think they're in charge of public education....Yeesh.
I like Gross Point but the rest should be leveled
It's a shakedown. A planned detonation, just as was the 2007-08 "economic collapse".
Michigan at the state level has been trending toward the fascist end of the political spectrum as of late. This is just another step in that direction.
For further evidence, see: Benton Harbor, Michigan.
The Detroit situation will be coming to most all US cities in time. Big corporate interests fronting the oligarchs will pick the bones of every bit of value left in this country.
That includes decimation of the environment, theft of art and public building treasures, elimination of public education and everything else that can be coverted to the private owners of society.
Take a look at the militarization of all city police forces. They are all getting federal funding. This is in preparation for the upcoming civil disruptions that are bound to happen when people are homeless and hungry and sick.
Is it eat, shit, and die; or is it eat shit and die.
You pinheads. Snake Plissken was an NYC/LA thing. You should have shown Robocop or ED209.
Everyone knows OCP is taking over and they need to clear the ghetto out for the newbuild city.
I'll buy that for a dollar!
What blows my mind is that when I saw RoboCop in the 1980s, the "future Detroit" scared the shit out of me.....
Yet now, that distopian OCP future seems to be a better "future" than is the reality on the ground in Detroit today.
Wish we could go with Dagny, but can't find that damn mountain range where she disappeared into...
interesting....the "Hantz" farmer with the land grab in Detroit is not your friendly local farmer -- This guy is one of the sleezier brokers I have ever met.
With no "turbo speed HP printer" how in the hell can Detroit SPEND more money than they receive?
They couldn't afford the HP Toner.
Amazon .... $17.75 .... I'll donate to the cause
Just package up the toxic debt waste, name her trple-A, and sell it to Bernanke. He'll eat anything.
Another statist failure, another win for nazionist globalist take something for nothing given, but their own war for money and power; a hateful product of the old world order: monarchy, vatican, hofjuden. The Trilateral Commission.
Escape from Detroit.
Make it productive agan and grow crops.
The looters can cut down street lamps for money. Fine example of what the globalist plan for the rest of the US.
http://youtu.be/QF4164GXCro
Whatch that documental if you can. Detroit is gone long ago and the sadiest part is that the root of the problem is spreading.
"Escape from Detroit!"
Bankruptcy is the only way to cancel the union contracts, only democrats want unions to persist because they get 99% of their votes. Republican taxpayers state wide are paying these people to vote democrats into perpetual office. Only bankruptcy can break the vicious cycle. Detroit would still be a ghetto, but it would be a better run ghetto.
Sometimes it's worth to go the past for a look into the future: here is James Follow with his "Countdown to Meltdown"; written amazingly enough in 2005 - 8 years ago !
http://esocap.com/uploads/files/Countdown.pdf
Spread the wealth AROUND
Please,
Stay the fuck out of Camden, NJ
http://goo.gl/Atct0
http://spotcrime.com/#39.944790%2C%20-75.12142
"Union representatives criticized city leaders for failing to implement cost-saving reforms. Some dismiss the idea that Mr. Orr might push Detroit into bankruptcy."
Number one cost saving reform.......anyone? Somehow, I do not think the unions will be, or have ever been on board with the most logical cost-saving reform, even if there own jobs (pensions and city) depend on it! I think only mass muni/pension fund bankrupticies will wake the politicians and union officials up.
Just wait for the unions ridiculous demand for a 10% raise.
Detroit had $64 million cash on hand in April but owed $226 million in payments on pensions and other obligations
Gee, ya think the unions aren't going to take it up the yin-yang on this one? But they have the nerve to chide the city.
Union representatives criticized city leaders for failing to implement cost-saving reforms.
Except when those cost-saving reforms cut union jobs!
Cluster, one big, dank, smelling cluster in what used to be a growing city. Time to call in the Bulldozers, this one's done.
Lol, bulldoze the entire city and turn it into a gigantic farm. Send all of the illegals up there to work.
We were buddies, Harold. You, me, and Fresno Bob. You know what they did to Bob, huh?
"I think its a scare tactic"
Pretty sure the Hostess baker's union said the same thing.
they had better make maryjane legal in Detroit - soon