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Detroit To Default Today, "Shared-Sacrifice" To Follow

Tyler Durden's picture




 

And so the next casualty of the inevitable municipal collapse appears, which is, as expected, that one-time symbol of all that was right with a (once upon a time) manufacturing America, having since been replaced with the anti-symbol of all that is broken: Detroit.

  • DETROIT BEGINS MORATORIUM ON ALL DEBT SERVICE PAYMENTS FOR UNSECURED FUNDED DEBT
  • DETROIT TO DEFAULT ON CERTIFICATES OF PARTICIPATION DUE TODAY

And, true to from in the New Normal America, where the "fairness doctrine" rules supreme under Big Brother's watchful eye, the premise of the upcoming glorious recovery is a well-known one: "the shared-sacrifice." To wit: "The City currently faces approximately $17 billion in total liabilities. Detroit is insolvent and cannot meet its financial obligations without a significant restructuring.  Mr. Orr's plan provides for shared sacrifice among all creditor groups – from Wall Street and Main Street consistent with their legal rights – in order to return Detroit to a sustainable financial foundation and to permit much-needed reinvestment in the City." The punchline: "Detroit's road to recovery begins today"... By defaulting.

Full release:

Emergency Manager Presents Plan to Secure a Viable, Strong Detroit

Focus is to Improve Delivery of Basic Services to 700,000 Detroit Residents
Detroit will Honor Pay, Medical and Vacation Obligations to Current Employees
Plan Provides for Shared Sacrifice Among All Creditor Groups to Return Detroit to Sustainable Financial Foundation and Permit Reinvestment in City
Negotiations Starting Now - Emergency Manager and His Advisers Are Moving Forward with Discipline, Speed and Efficiency of a Corporate Restructuring

Kevyn Orr, the Emergency Manager for the City of Detroit, today presented to the City's creditors a plan that outlines the required steps to secure a viable, strong Detroit.  The focus of the proposal is to ensure that the City improves the delivery of basic services -- fire and police protection, functioning street lights, regular and reliable garbage collection, blight removal and enhanced emergency medical services -- to the 700,000 people who live in Detroit.

The City currently faces approximately $17 billion in total liabilities. Detroit is insolvent and cannot meet its financial obligations without a significant restructuring.  Mr. Orr's plan provides for shared sacrifice among all creditor groups – from Wall Street and Main Street consistent with their legal rights – in order to return Detroit to a sustainable financial foundation and to permit much-needed reinvestment in the City.

"Detroit's road to recovery begins today," said Mr. Orr.  "Financial mismanagement, a shrinking population, a dwindling tax base and other  actors over the past 45 years have brought Detroit to the brink of financial and operational ruin.  We cannot repeat the mistakes of the past -- the City, its region and the country deserve better.  Our plan is bold because aggressive action is required to get Detroit back on its feet and improve the quality of life for the people who call Detroit home.  

"Today is a new day and we have presented a plan that outlines a comprehensive roadmap for ensuring basic services are delivered to our citizens while aligning our obligations with the reality the City confronts.  My team and I hope Detroit's creditors and constituents recognize that compromise and shared sacrifice are required for a better, more sustainable future for Detroit and its citizens."

As part of its plan, Detroit is in the beginning of a moratorium on all debt service payments for unsecured funded debt, which will begin with the next payment to holders of Certificates of Participation due June 14, 2013.  The City has made this decision in order to conserve cash so that it can continue to provide essential services to its citizens.  Detroit also will continue to honor its pay, medical and vacation obligations to its current employees and maintain its current vendor contracts for essential goods and services.

Mr. Orr and his advisers have started discussing the plan with Detroit's creditors, and they will move forward with the discipline, speed and
efficiency of a corporate restructuring.  They are committed to negotiating in good faith with all constituent groups to pursue consensual agreements.  The team also is focused on pursuing a restructuring that protects and promotes the long-term viability of Detroit and the basic well-being of its citizens. 

Mr. Orr and his advisers will work to maximize recoveries for creditors within the City's means, while providing pension and health insurance benefits that are reasonable and fair.  These changes will allow essential reinvestment in the City to improve the lives of its citizens for decades to come.

The plan presented today can be accessed in the Emergency Manager section of Detroit's website at http://www.detroitmi.gov/.  It identifies the sacrifices the City is seeking to ensure its future viability.  The plan proposes the following with respect to certain creditor groups:

  • The Emergency Manager is proposing to treat the City's obligations of similar priority in roughly the same manner so as to provide relative equality of treatment as the Emergency Manager addresses the City's staggering legacy liabilities.
  • Holders of secured debt will receive treatment commensurate with the value of their collateral.  The City's largest secured bond debt would be restructured with new bonds that respect the valid security interests of the bondholders, or otherwise as agreed by the parties.
  • The City's unsecured bonds and other unsecured obligations (including unsecured General Obligation bond debt, pension certificates, the pensions' underfunding claims and retiree healthcare claims) will receive their pro rata portion of $2 billion face amount nonrecourse participation notes, payable as the City's financial circumstances improve.  Principal paydowns will occur at certain intervals and will be based upon the City's
    receipt of currently unbudgeted sums related to asset values and improved City revenues.
  • The plan proposes to modify pension benefits consistent with available funding.
  • The plan also proposes to modify retiree health insurance, with many retirees obtaining benefits from Medicare or the healthcare exchanges under the Patient Protection and Affordable Care Act.
  • A follow-up meeting with the City's unions and retirees will be scheduled in the near term to explain the details of revised pension and  healthcare benefits.

Mr. Orr and his advisers also want to make sure that the restructuring achieved by Detroit is sustainable and leads to a permanent revitalization of the City.  Many of the planned revitalization efforts will take years to complete.  In exchange for the painful sacrifices from creditors, Mr. Orr and his team will insist that structures are put in place to ensure that the restructuring initiatives are continued and that fundamental changes are not undermined.  Toward this end, the Emergency Manager expects to adopt oversight structures that have been used successfully in other cities, including New York City, to ensure that reforms are sustainable and long-lasting.

"The City and its creditors and constituents will have worked too hard and sacrificed too much for the gains of the restructuring to go for naught," said Mr. Orr.  "We will need an oversight structure to ensure that the tough decisions and the compromises we make today are sustainable and allow Detroit to become a vibrant and growing American city once again.  We look forward to our continued discussions with the City's creditors and to a brighter future for Detroit and all of its citizens."

Miller Buckfire & Co., Jones Day, Ernst & Young LLP and Conway MacKenzie Inc. are advising the City of Detroit in its restructuring.

 

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Fri, 06/14/2013 - 12:12 | 3658321 Pig Brotha
Pig Brotha's picture

I'm trying to determine the common denominator in all of those fine cities, just can't get it yet though.

 

Fri, 06/14/2013 - 12:29 | 3658404 greatbeard
greatbeard's picture

>> I'm trying to determine the common denominator

Humans.  You just make a conscious decision to not hold some accountable.

Fri, 06/14/2013 - 12:40 | 3658464 Pig Brotha
Pig Brotha's picture

Nice try, humanity is not the problem. The lack of it is. 

Fri, 06/14/2013 - 20:56 | 3659954 lakecity55
lakecity55's picture

chocolate bunnies. they sure taste good, especially the darker chocolates.

Fri, 06/14/2013 - 14:58 | 3659062 Blankenstein
Blankenstein's picture

Oh the irony.  The writer was born and raised in Detroit and is calling Kansas a rogue state and criticising the free marketers.   

http://www.rollingstone.com/politics/news/rogue-state-how-far-right-fana...

Fri, 06/14/2013 - 12:08 | 3658294 JJ McApe
JJ McApe's picture

guys please don't you worry.

thats good for us stocks.!!!!!!!!

q.q

Fri, 06/14/2013 - 12:08 | 3658295 Goldbugger
Goldbugger's picture

Yay it's just a couple of Billion..

 

Dont' forget to stand wih Snoweden

https://secure.avaaz.org/en/stop_prism_global/?aQRIQeb

Fri, 06/14/2013 - 12:08 | 3658297 tnquake
tnquake's picture

Coming to selected cities and states across the country!

Fri, 06/14/2013 - 12:08 | 3658299 Meat Hammer
Meat Hammer's picture

Pop some popcorn and enjoy the public-employee-leeches vs EBT-leeches cage match.  

Fri, 06/14/2013 - 12:16 | 3658353 e_goldstein
e_goldstein's picture

Can I get soylent green with that?

Fri, 06/14/2013 - 12:10 | 3658305 10mm
10mm's picture

Sell it to China,why not.

Fri, 06/14/2013 - 12:09 | 3658307 Martin Silenus
Martin Silenus's picture

Goin' all Cyprus on your ass!

Fri, 06/14/2013 - 12:13 | 3658320 Jumbotron
Jumbotron's picture

Speaking of Cypress.....isn't this Detroit's Official City Band?

http://www.ticketmaster.com/Cypress-Hill-tickets/artist/702466

http://www.youtube.com/watch?v=RijB8wnJCN0

 

Fri, 06/14/2013 - 12:14 | 3658344 Martin Silenus
Martin Silenus's picture

Haha!  Are there any coincidences anymore?  lol

Fri, 06/14/2013 - 12:11 | 3658312 Dr. No
Dr. No's picture

Obama: "We are all americans.  Tax payers in Texas, California, and throughout the rest of the country are obligated to lend a helping hand. We cannot deny the american dream to people in Detroit who, no fault of their own, have fallen on hard times...."

 

Maxine waters: "If we dont bail out Detroit, 100M more jobs will be lost in that city..."

 

**puke**

Fri, 06/14/2013 - 12:16 | 3658352 AynRandFan
AynRandFan's picture

And if you don't agree, you're rayciss!

Fri, 06/14/2013 - 12:28 | 3658400 Mark Urbo
Mark Urbo's picture

Racist !   (sarc)

Fri, 06/14/2013 - 17:27 | 3659455 MisterMousePotato
MisterMousePotato's picture

'Sarcasm'. eh? (emphasis on sarcasm.) Guess you're a racist, too.

Fri, 06/14/2013 - 12:11 | 3658314 Missiondweller
Missiondweller's picture

The punchline: "Detroit's road to recovery begins today"... By defaulting.

Well it worked for Iceland. Recognize the loss, restructure and move on. Same thing that should have happened with GM and Chrysler.

Top Economists Recognize Iceland Did it Right

http://macrowealthpreservation.blogspot.com/2012/08/top-economists-recog...

Iceland The Model. Greece The Failure

http://macrowealthpreservation.blogspot.com/2012/02/iceland-model-greece...

Fri, 06/14/2013 - 12:16 | 3658354 Talleyrand
Talleyrand's picture

Detroit ain't Iceland.

need some "...blight removal"?

Fri, 06/14/2013 - 17:29 | 3659462 MisterMousePotato
MisterMousePotato's picture

Correct. Even if Detroit did adopt Iceland's solutions (which it won't because Detroit ain't Iceland), it wouldn't carry them out properly or at all (because Detroit ain't Iceland).

Fri, 06/14/2013 - 12:19 | 3658365 ITrustMyGut
ITrustMyGut's picture

absolutely.. default is the only answer to all of it.. Jubilee!

the debts are BS anyways.

Fri, 06/14/2013 - 12:12 | 3658319 q99x2
q99x2's picture

And don't forget to lock the banksters up that conned you into the mess.

Fri, 06/14/2013 - 12:12 | 3658323 monad
monad's picture

It only stands to reason that where there's sacrifice, there's someone collecting the sacrificial offerings. Where there's service, there is someone being served. The man who speaks to you of sacrifice is speaking of slaves and masters, and intends to be the master.
AYN RAND

Fri, 06/14/2013 - 13:12 | 3658642 mofreedom
mofreedom's picture

thieves never say:  please, thank you or I'm sorry.

 

you readin me gub???

Fri, 06/14/2013 - 12:12 | 3658328 r8trader
r8trader's picture

Anyone have an opinion in the recovery value of the GO bonds?

Fri, 06/14/2013 - 12:13 | 3658329 r8trader
r8trader's picture

Anyone have an opinion on the recovery value of the GO bonds?

Fri, 06/14/2013 - 12:37 | 3658450 TPTB_r_TBTF
TPTB_r_TBTF's picture

.

 

recovery rate of 68.33 percent based on the number of defaults.

[Muni Defaults]

 


Fri, 06/14/2013 - 17:30 | 3659468 MisterMousePotato
MisterMousePotato's picture

Yes, but that was then.

Fri, 06/14/2013 - 17:31 | 3659471 MisterMousePotato
MisterMousePotato's picture

(And there.)

Fri, 06/14/2013 - 12:13 | 3658335 Tinky
Tinky's picture

Too bad. Dave Bing will have happier memories of his days with the Pistons.

Fri, 06/14/2013 - 12:31 | 3658415 Bam_Man
Bam_Man's picture

Or later with the Celtics. 

Can remember the great Johnny Most saying "Bing in the corner...Bing...Bing...BANG!"

Fri, 06/14/2013 - 14:03 | 3658859 Tinky
Tinky's picture

He was a sensational player. If it weren't for the eye injury, everyone would have been aware of it.

Fri, 06/14/2013 - 13:18 | 3658666 ShrNfr
ShrNfr's picture

He tried hard, but following Kilpatrick there was no way to bring that city back from the dead.

Fri, 06/14/2013 - 21:16 | 3659979 mjcOH1
mjcOH1's picture

K-wammy was the canary in the coal mine, not the decisive factor.   Yes they really had gotten that shameless about it.   Gimme-dat'!

Fri, 06/14/2013 - 12:16 | 3658356 azengrcat
azengrcat's picture

The clock runs out, times up, over, bloah!  Snap back to reality, Oops there goes gravity...

Fri, 06/14/2013 - 12:17 | 3658358 Dr. Engali
Dr. Engali's picture

Detroit a once magestic city...look at you now....it breaks my heart that this is our country:

 

https://www.youtube.com/watch?v=Kem2ceHCtGQ

Fri, 06/14/2013 - 12:26 | 3658394 nomorebuyins
nomorebuyins's picture

Sad video, but the "guns and drugs caused this" message in the backround couldn't be further from the truth. Drugs is just the end result of an abandoned ghost town. GM destroyed this city!

Fri, 06/14/2013 - 12:29 | 3658406 Dr. Engali
Dr. Engali's picture

I agree with you on the background message in the video. It's the images of what's left that people need to see.

Fri, 06/14/2013 - 12:43 | 3658460 asscannon101
asscannon101's picture

It wasn't drugs or guns or any other inanimate objects that brutalized Detroit, pillaged the coffers and held the People down. For about 8 years it was liberal Mayor Kwame Kilpatrick.
http://www.nytimes.com/2013/03/12/us/kwame-kilpatrick-ex-mayor-of-detroi...

 

DETROIT — Kwame M. Kilpatrick, a former mayor of Detroit, was found guilty on Monday of a raft of charges, including racketeering, fraud and extortion, capping a five-month public corruption trial against him and two co-defendants.

Related
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Bobby W. Ferguson, center, a contractor, was also convicted in the corruption trial in Detroit.

The jury found Mr. Kilpatrick guilty of 24 of the 30 charges against him, including the most serious charges of racketeering and extortion, which each carry maximum sentences of 20 years.

At an afternoon bond hearing, Mr. Kilpatrick and Bobby W. Ferguson, a city contractor, appeared stunned after being ordered to prison pending sentencing. Judge Nancy G. Edmunds cited the possible risk of fleeing and danger to the community. No sentencing date was set.

Fri, 06/14/2013 - 12:51 | 3658545 lolman
lolman's picture

You two know the real reason it reverted to Africa

Fri, 06/14/2013 - 12:29 | 3658409 Mark Urbo
Mark Urbo's picture

Leftist Policies + Unions + Corrupt Politicians

 

= Detroit

Fri, 06/14/2013 - 12:51 | 3658544 lolman
lolman's picture

You two know the real reason it reverted to Africa

Fri, 06/14/2013 - 12:31 | 3658416 Agent P
Agent P's picture

It saddens me too, but (at the risk of sounding cold hearted) this is what happens when people don't take care of themselves, but instead rely upon others to do so for them.

Fri, 06/14/2013 - 12:34 | 3658430 Dr. Engali
Dr. Engali's picture

I agree 100%. Sadly this is our future.

Fri, 06/14/2013 - 12:42 | 3658468 monad
monad's picture

This wasn't an accident. Politicians are attracted to wealth. Politicians who overstep their authority are criminals. All unsupervised politicians inevitably overstep their authority, its human nature; the dumber they are, the faster they fall. Remember also that the focus of the camera is always biased, always distorting the truth, often beyond recognition.

The criminals anticipate that we the able will change their diapers, so they shit all over themselves. They chose not to support themselves. In doing so they chose death; intending the death to be ours, in their service. They have demonstrated that if I save them, they will only multiply, proportionally diminishing the values of discipline, hard work and diligence that make it possible for me to save them at all. I have no moral obligation to help these parasites turn the whole world into the shithole you lament, this example of their work. They can fix their own problems, or die by their own hand. I will resist being forced to contribute to this irrationalism by any means available.

Learn from your mistakes. Stay out of their reach.

Fri, 06/14/2013 - 12:20 | 3658367 jtz5
jtz5's picture

So if I don't pay my property taxes, the city I live in will seize the property and kick me out, but when the city doesn't pay its bills, it's oh well, take pennies on the dollar.  Yeah, seems fair.

Fri, 06/14/2013 - 13:15 | 3658647 mofreedom
mofreedom's picture

burn it down and despoil the land before they take it all.

Fri, 06/14/2013 - 12:23 | 3658377 writingsonthewall
writingsonthewall's picture

Will this be a comeback for Meredith Whitney?

The rabid hounds dismissed her because it did not arrive when they demanded a date from her.

I wonder where those hounds are now...

Fri, 06/14/2013 - 12:25 | 3658386 ThisIsBob
ThisIsBob's picture

A journey of a thousand miles begins in a first step.

Fri, 06/14/2013 - 12:25 | 3658388 BadDog
BadDog's picture

This is just the tip of the iceburg like with the NSA dissclosure.  Wait until depositors get a chance to "share the pain" with their TBTF bank or in other words get Cyrpused.

Fri, 06/14/2013 - 12:27 | 3658397 NeedtoSecede
NeedtoSecede's picture

I share all the “news" from places like Detroit and Camden with my college-age stepkids. I let the facts speak for themselves but hint that this is most-likely their future. I am proud of them, both are beginning to wake up and unplug from the matrix.

My wife was bugging me this week about taking a trip to DC (she found cheap plane tickets or some bullshit) and at first I was resistant-I want to stay as far away as possible. However, now that I think about it, this might be an opportunit to open minds a little farther...

Since I do ALL fucking driving during any fun family outing, maybe an unscheduled detour to some of the nice friendly neighborhoods around DC that nobody from the Government-Media Complex (GMC) wants anyone to see will be in order. Right in the very epicenter of .gov control the failure of all these fucking statist programs will be plain as day to my still somewhat naive and insulated Midwestern family...

Hopefully, the rental doesnt break down on us during our tour. Wish us well.

Fri, 06/14/2013 - 12:45 | 3658504 Bam_Man
Bam_Man's picture

Yeah, drive them around Anacostia or Trinidad for a good look at urban DC blight.

Just make sure the windows are rolled up, and doors locked.

Fri, 06/14/2013 - 16:53 | 3659369 RallyRoundTheFamily
RallyRoundTheFamily's picture

If you get a flat drive that fucker on it's rims.

Fri, 06/14/2013 - 12:54 | 3658559 Suisse
Suisse's picture

Anacostia is wonderful this time of year, all the locals are out in front of their homes trying to keep nice and cool.

Fri, 06/14/2013 - 13:17 | 3658655 mofreedom
mofreedom's picture

porch monkey.  is that a song?

Fri, 06/14/2013 - 13:48 | 3658783 mofreedom
mofreedom's picture

sorry, the song was BRASS MONKEY.

http://www.youtube.com/embed/nBbQyXZvkbA?autoplay=1

Fri, 06/14/2013 - 20:49 | 3659946 lakecity55
lakecity55's picture

You will find yourself out numbered by Muslims, but there will be plenty of Mosques for you to worship in.

Fri, 06/14/2013 - 12:29 | 3658405 Conax
Conax's picture

Detroit could be gifted to Canada.  Put up a fence and a border checkpoint. 

Pressing problems should be considered opportunities to demonstrate our greatness.

Fri, 06/14/2013 - 13:19 | 3658665 mofreedom
mofreedom's picture

but that's a good drug route into pittsburgh.

Fri, 06/14/2013 - 15:26 | 3659156 bluskyes
bluskyes's picture

Bulldoze the entire city into the St Claire River, and build a nice wide 24 lane bridge for the NAU Super Highway.

Fri, 06/14/2013 - 21:21 | 3659988 mjcOH1
mjcOH1's picture

That would be the Chinese solution.....10mi line of Cat D-11s, everybody push on 3..2..1.   Maybe we can do the same thing with a line of Starbucks barristas.

Fri, 06/14/2013 - 12:30 | 3658407 Quinvarius
Quinvarius's picture

All the Meredith Whitney haters can STFU now.  She was right again.  Probably because she uses math.

Fri, 06/14/2013 - 16:12 | 3658446 thedrickster
thedrickster's picture

Muni bond math....but just think of the children.

Fri, 06/14/2013 - 12:33 | 3658427 virgilcaine
virgilcaine's picture

this not good for stawks? as the junk credit mkt goes..

Fri, 06/14/2013 - 12:35 | 3658435 moneybots
moneybots's picture

"We cannot repeat the mistakes of the past."  

"Detroit will Honor Pay, Medical and Vacation Obligations to Current Employees"

Mistakes of the past to continue.

Fri, 06/14/2013 - 13:43 | 3658438 TrustbutVerify
TrustbutVerify's picture

This Detroit debacle has been decades in the making.  A close, or even a cursory, examination of what put this city where it is today is essential to avoiding similar situations on various local but also national levels.  

Those few Democrats that consider themselves to be economic rationalists should have been appalled, for all these decades, at what they saw slowly unfolding in Detroit.  But they remained silent.  In other locations Republicans may be equally guilty.  

This disaster is the result of decades of consistently poor decision making.  Extrapolate and examine your locale's situation.  We know that nationally we're not that far from being "Detroit." 

Fri, 06/14/2013 - 12:37 | 3658445 Cacete de Ouro
Cacete de Ouro's picture

Energency Manager, Mr 'Orr'.

Sounds more like Mr 'Up shit creek without a paddle'.

Certainly not Mr 'Or', or he would have laid a golden egg...

Fri, 06/14/2013 - 12:38 | 3658452 moneybots
moneybots's picture

"Mr. Orr's plan provides for shared sacrifice among all creditor groups"

"Detroit will Honor Pay, Medical and Vacation Obligations to Current Employees"


Fri, 06/14/2013 - 12:38 | 3658453 SilverFish
SilverFish's picture

Should start making the Model T again.

 

 

Look what it did for em last time.

Fri, 06/14/2013 - 15:57 | 3659164 monad
monad's picture

That was before the vampires from london & east europe afflicted us with income tax and minimum wage.

Fri, 06/14/2013 - 16:52 | 3659368 SilverFish
SilverFish's picture

Make them garlic scented?

Fri, 06/14/2013 - 12:40 | 3658465 Fuku Ben
Fuku Ben's picture

Emergency Actor Presents Plan to Fail Again, Dissolve Detroit, Model for a Future America

Focus on exponentially increasing ongoing graft and corruption in the government

Disarm the Public and Eliminate all Services to 700,000 Detroit Residents and roll everything under the umbrella of Agenda 21

Detroit will Honor Pay, Medical and Vacation Obligations to Current Employees & give massive bonuses to pretty much everyone that wants one. They seek to copy the successful bailouts of AIG and other companies. 

Plan Provides for Child Sacrifice to Molek to Return Detroit to its roots

Negotiations Starting Now - Emergency Actor and their Advisers Are Moving Forward with the Discipline, Speed and Efficiency of a United Nations Assembly Meeting attempting to reach consensus

The Auditor will be paid in advance before the dissolution and issue a standard industry disclaimer removing all liability and responsibility for the information contained in their audit.

Fri, 06/14/2013 - 12:40 | 3658466 DrDre
DrDre's picture

Meredith Whitney was only early ...

 

Fri, 06/14/2013 - 15:22 | 3659142 Navymugsy
Navymugsy's picture

She's strangely hot. Am I nuts?

Fri, 06/14/2013 - 17:21 | 3659433 Non Passaran
Non Passaran's picture

W/o all the QE this would happen much sooner

Fri, 06/14/2013 - 12:41 | 3658472 Atomizer
Atomizer's picture

Well, well, well, what do we have here? Another socialism works success story seems to have emerged.

Fri, 06/14/2013 - 12:43 | 3658492 Richard Head
Richard Head's picture

FORWARD!

Fri, 06/14/2013 - 12:46 | 3658509 exartizo
exartizo's picture

Detroit is the beginning of much larger problems.

Got extra property?

Get rid of it because they're going to tax the shit out of all real property at every level of government.

Got gold and silver?

Don't become a Hoarder or a Slacker.

Fri, 06/14/2013 - 13:08 | 3658624 monad
monad's picture

They are coming for your life.

Get rid of it because they're going to take it and enslave the shit out of you.

Alive?

Don't be. Kill yourself today.

Fri, 06/14/2013 - 12:49 | 3658534 scaleindependent
scaleindependent's picture

Fairness Doctrine; definition; private bankster gains, public losses, tax payer pays.

Fri, 06/14/2013 - 12:59 | 3658582 orangegeek
orangegeek's picture

Maybe now Detroit can give pay raises to their union workers - say 10% - and they can help make things better.

 

Oh look, there's some litter in a neighborhood of burned out houses - call 10 city workers over now so they can clean up the litter.

 

How's Cleveland doing these days?  Bout the same you say?

Fri, 06/14/2013 - 13:17 | 3658656 arby63
arby63's picture

Well Cleveland has whored itself out to Hollywood for spending cash (thanks to their unique israeli inter-connectedness). That should last them a few more months....

Fri, 06/14/2013 - 21:25 | 3659997 mjcOH1
mjcOH1's picture

"Oh look, there's some litter in a neighborhood of burned out houses - call 10 city workers over now so they can clean up the litter."

....so they can stare at the litter.

Fixed it for ya.

Fri, 06/14/2013 - 13:03 | 3658604 robertocarlos
robertocarlos's picture

Just do the right thing. Pay 1 trillion dollars in reparations and watch Detroit recover. Chappel is a genius.

Fri, 06/14/2013 - 13:09 | 3658628 TonyCoitus
TonyCoitus's picture

Yes, but Miguel Cabrerra is on his way to a second consecutive Triple Crown, so all is well!

Don't forget to BUY THE FUCKING DIP!

Fri, 06/14/2013 - 13:12 | 3658638 Darkside
Darkside's picture

Let the fucking place go bankrupt wake people up

Fri, 06/14/2013 - 13:16 | 3658650 Whiner
Whiner's picture

Putting together a consortium to bid on those $2B nonrecourse participation notes. Forward capitalistas! Have take out financing backed by Model Cities Block Grant. Wire WhinerDetroitRenewal.

Fri, 06/14/2013 - 13:26 | 3658708 monad
monad's picture

Fairness Doctrine: Fuck Less, Work More

Thats shared sacrifice.

Fri, 06/14/2013 - 13:26 | 3658709 Monedas
Monedas's picture

Food, energy and welfare cost .... not part of the CPI ?

Fri, 06/14/2013 - 13:37 | 3658764 reTARD
reTARD's picture

Ben over, it is time for:

shared sacrifice

greater good

fairness

general welfare

people's progress

our social contract

collective good

we must

together we can

Fri, 06/14/2013 - 21:31 | 3660019 mjcOH1
mjcOH1's picture

Forward!

 

Long live our great motherland--the Union of Soviet Socialist Republics!

Fri, 06/14/2013 - 13:38 | 3658767 MFLTucson
MFLTucson's picture

"The City and its creditors and constituents will have worked too hard and sacrificed too much for the gains of the restructuring to go for naught," said Mr. Orr.

 

Odviously, they have not worked hard enough and there was gross mismanagement to be in default!

Fri, 06/14/2013 - 13:39 | 3658771 bugs_
bugs_'s picture

Just like the shared sacrifice for the GM bankruptcy - ROFL

but Detroit can start again, just like Greece.

Fri, 06/14/2013 - 13:41 | 3658779 surf0766
surf0766's picture

Bulldoze the entire city along with GM

Fri, 06/14/2013 - 13:55 | 3658824 MeelionDollerBogus
MeelionDollerBogus's picture

wait, what? but MUNI bonds are solid! Why can't anyone sell me a decent bridge?!

Fri, 06/14/2013 - 14:08 | 3658835 fuckitall
fuckitall's picture

"The punchline: "Detroit's road to recovery begins today"... By defaulting."

But not bankrupting?  Not terminating all those union contracts?  And pension obligations?  And cushy high paying jobs?

How much you wana bet those union contracts and pension obligations and cushy high paying jobs carry right on thru unchanged?

Default isn't bankruptcy.  Bankruptcy is what they need.  All in, terminate everything, wipe the slate clean, full blown bankruptcy.

But Detroit wouldn't exist anymore.  City charter is terminated by state legislature, everybody gets fired, city hall shuts down, city limits vanish, city services vanish, city taxes vanish, it all reverts back to county.

That's why they won't bankrupt.

Fri, 06/14/2013 - 14:40 | 3658995 Zymurguy
Zymurguy's picture

These unions... like the scorpion that stings the frog it's riding on half way across the stream.

Fri, 06/14/2013 - 14:02 | 3658856 realitybiter
realitybiter's picture

Almost 2 million people lived their in the 50's.  Now 600k.  Soon to be 300k...which will only be pensioners trying to live close to their meeting sites to "save their pensions" from a tax base that is no longer there (who would be with 2 hour police response times) and rising taxes for pensioners that squandered whatever pittance they put into the plan.

 

As GM goes.....

so glad GM bondholders got screwed over to save Detroit.  Failure is the only way to success.  You have to change management, paradigm, debts.  Everything.  More of the same yields more of the same.

Fri, 06/14/2013 - 14:05 | 3658865 realitybiter
realitybiter's picture

I predict GM soon makes its world HQ in China.  They will blame it on sales shifts and onerous taxes.  So glad we saved them.

 

 

Fri, 06/14/2013 - 14:06 | 3658867 dognamedabu
dognamedabu's picture

Take Windsor with you. I find it very funny when holier than thou preach about Alberta or North Dekoda as a one horse place. Usually they reside in an ivory union tower that is about to implode so they create wonderous ideas like carbon credits and other schemes to transfer wealth. 

Fri, 06/14/2013 - 14:25 | 3658935 Blano
Blano's picture

The ballet can stay.

Fri, 06/14/2013 - 14:52 | 3659041 dognamedabu
dognamedabu's picture

Ballet hey? Idk. Those monkeys can get haircut too. Camel toe lady can contimplate why the roads are so rough. Im kidding.. The arts are always the first thing to be saved....

Fri, 06/14/2013 - 17:45 | 3659509 WAMO556
WAMO556's picture

I was thinking that if the women are hot, don't mind coming to work in string bikinis, then they stay....

But....

If you can scare the chrome off of a trailer hitch, then yous got to move on. Dudes...you got to move on too!

Fri, 06/14/2013 - 14:17 | 3658907 dognamedabu
dognamedabu's picture

Really however this is a great first step. All bonds should be reneged. Sorry suckers lenders need to feel pain. Ben wants you outta them anyways. Be a good citizen and eat it. Take your haircut and be glad it isnt Greek style. Really.. Any bond holder of Detriot debt is really surprised? How much were you getting in interest? 5%? You greedy little lepercon. Off with your head! 

Fri, 06/14/2013 - 14:20 | 3658917 dognamedabu
dognamedabu's picture

Chicago is watching very intently. 

Fri, 06/14/2013 - 14:23 | 3658930 bnbdnb
bnbdnb's picture

Detroit > Lehman?

Fri, 06/14/2013 - 14:25 | 3658936 dognamedabu
dognamedabu's picture

Not to be racist but the black people in Detriot have to have lower iq than the good black people of DC

Fri, 06/14/2013 - 14:31 | 3658958 dognamedabu
dognamedabu's picture

I mean come on.. Its what no more than a 12 hour bus ride.. living large in DC. Flash your hire me cause Im black card. Who needs Detroit? Its what Id be doing. Gotta get smart about this stuff people.

Fri, 06/14/2013 - 14:41 | 3659001 dognamedabu
dognamedabu's picture

Follow the law however. Uncle Sam is after you like you don't already know. Crazy stats like one in fitty blacks guys are in jail.. Cause of drugs.. Meanwhile CEO of major drug co are buying houses in the Hamptons. As I type this im am getting aware that a DHS might be alerted and is reading my emails to that great co that enlarged my unusally large self

Fri, 06/14/2013 - 21:37 | 3660045 mjcOH1
mjcOH1's picture

"Crazy stats like one in fitty blacks guys are in jail.. Cause of drugs.. Meanwhile CEO of major drug co are buying houses in the Hamptons."

Homey's not in jail for pushing Lipitor on the playground, yo...

Fri, 06/14/2013 - 14:31 | 3658959 They trynna cat...
They trynna catch me ridin dirty's picture

What I can't figure out is, where is the safe, functional, civilized society of all blacks that the 'certain people' in government, media and academia are using as a precedent as they continue to throw away trillions of dollars on blacks?

It's the equivalent of devoting trillions of dollars to trying to make cats able to drive automobiles, and then when the cats keep failing over and over, just saying 'Well it must be something we're doing wrong, because everyone knows that cats can drive just as well as humans, and anyone who claims otherwise is just a stupid species-ist."

Seriously, where is the precedent??

Fri, 06/14/2013 - 15:33 | 3659187 dognamedabu
dognamedabu's picture

Define throw away.. Yes black people get gov jobs.. and it is mostly useless work. But come on.. If you black what would you do? Not like white people have all that great work. I live west coast Canada and black people are a novelty. N fact my wife is brown. Most around here just go fuck.. walmart is paying jack shit and im suppose to provide. Again.. if i were black and in Detroit Id so be on bus to obama land

Fri, 06/14/2013 - 16:09 | 3659276 They trynna cat...
They trynna catch me ridin dirty's picture

"Throw away" as in, for example, using the money to feed and house millions and millions of pigeons. The only thing you get for all the money spent is.. more pigeons.

Or in Detroit's case, violent and destructive pigeons.

Fri, 06/14/2013 - 14:33 | 3658966 Nue
Nue's picture

"Shared Sacrafice" or "We need your money white people, not you just your money"

Racist? no just honest Detroit citizens used to be well known for bragging about how they got rid of all the white people.

Fri, 06/14/2013 - 20:44 | 3659940 lakecity55
lakecity55's picture

welcome to NegroDome!

Fri, 06/14/2013 - 15:25 | 3658972 Yes_Questions
Yes_Questions's picture

 

 

What City assets, I wonder, will be essentially given away and to whom in all this?

 

Make no mistake, the City Manager position is not about saving any cities.

Fri, 06/14/2013 - 14:35 | 3658973 Zymurguy
Zymurguy's picture

Detroit... a perfect example of how NOT to run a city.  The taxpayers have been leaving in droves while the takers were promised more and more.  Money coming in was reducing annually so they borrowed to make up the difference.  This then compounds the problem of the losts tax revenue by adding interest payments on top of all of it.  Crushing... literally.  What a bunch of Keynesian fuck-tards.

Fri, 06/14/2013 - 15:15 | 3659116 SmallerGovNow2
SmallerGovNow2's picture

Sounds like the USA...

Fri, 06/14/2013 - 14:36 | 3658978 yogibear
yogibear's picture

"truly meant the productive class would have to sacrfice for the non-productive class...aka the takers"

They'll storm the state capital if you attempt to take anything away from them.

The takers will keep cryng for more until they bankrupt anyone left  producing. Their the ones driving fine rides (top end BMWs, Mercedes) and buying coach purses.

Fri, 06/14/2013 - 14:40 | 3658994 sandblaster
sandblaster's picture

The horror, the horror of it all.  Does anbody have a line on cheap 7.62x51mm ammo? Prefer case lots.

Fri, 06/14/2013 - 14:43 | 3659010 Dre4dwolf
Dre4dwolf's picture

If they fully default, it wouldn't be a bad time to buy land in detroit actually.... as long as they don't just go back to the way they were in 2 years.

Any state that defaults on its debts, and starts its own new currency always has an economic boom following it.

 

Its like a spring cleaning, you take the broom and shovel, get rid of all the dog-shit you let pile up in your yard, and then you get to have a dog-shit free party.

Fri, 06/14/2013 - 15:17 | 3659121 dognamedabu
dognamedabu's picture

Wow your faith is better than mine. Same people running it. They gov partner. Sure $9000 house is tempting but really? Id rather live in Iraq. They have oil.

Fri, 06/14/2013 - 17:36 | 3659480 WAMO556
WAMO556's picture

Now that shit is FUNNY!

You made me chuckle...thank you!

Fri, 06/14/2013 - 14:50 | 3659022 foodstampbarry
foodstampbarry's picture

The only business left in Detroit is Hardcore PAwn. The clientele in that shop tells you everything you need to know about why Detroit is where it is.

Fri, 06/14/2013 - 15:06 | 3659089 dognamedabu
dognamedabu's picture

I think you solved it! Detriot becomes Mecca of pawn. I can see the results! Discovery channel will have to bump American hillbilly show. Oh I can see it! Cuttng lock off storage.. Fuck ya! Ready made meth lab! Come on I know youd watch.

Fri, 06/14/2013 - 15:07 | 3659090 Jim B
Jim B's picture

In the new "normal", secured creditors will get screwed!

Fri, 06/14/2013 - 15:19 | 3659128 Colonel Klink
Colonel Klink's picture

"consistent with their legal rights"   Bahahahahahahahahah!!  ROFL! LMAO!!

Fri, 06/14/2013 - 16:59 | 3659382 Mr. Hudson
Mr. Hudson's picture

They need to put a big electrical/barbed-wire fence around the city and call it Camp FEMA/Detroit.

Fri, 06/14/2013 - 17:12 | 3659405 tony bonn
tony bonn's picture

whatever happened to deficits don't matter?

shared sacrifice is code for the little people are fucked and the banksters will make billions more in bonuses for "restructuring." big government was invented by big banksters to fuck little people.

Fri, 06/14/2013 - 17:26 | 3659448 Zarba
Zarba's picture

Detroit's road to recovery begins today,"  That is true, since that which cannot be repaid....won't.  Anyone who bought this junk will get a haircut.

Fri, 06/14/2013 - 17:36 | 3659483 Paracelsus
Paracelsus's picture

   When Stockton,calif.,went BK,it turned out they had spent more than six months trying to bargain in good faith with Police/Fire guys (Free health care for life and spouse too),and the Muni holder (Wells Fargo). No dice,nobody wanted to take a haircut.This is the same old "Burning Platform",You wouldn't dare,scenario. So Wells Fargo seized a couple of downtown Stockton parking garages for collateral.Meanwhile crimes have gone up,and the cops have been cut to the bone.The city will look like Beirut (or Detroit) in a few years. The irony is they didn't need to wait six months to file.The Public Sector unions rammed a law thru the California legislature specifically for Stockton: six months for the lawyers on both sides to punch each-other out and do alot of billing.Why,oh why do I feel like I am watching people rearrange the deckchairs on the RMS Titanic.Meredith Whitney,Ron paul,Nigel Farage. Why didn't anyone listen? 

Fri, 06/14/2013 - 19:08 | 3659735 esum
esum's picture

Detroit ... a great place to stop and take a shit .... or planes to drop blue ice.... or a nuke test zone.... or abortion burial ground....or just a hemroid on the socialist sphinchter..... the future of URBAN  AMERIKA .... meantime the shoe shine boy farts in America 's face with a safari.... spear chucker special .... 

Fri, 06/14/2013 - 20:39 | 3659931 lakecity55
lakecity55's picture

If Dick O had a town, it would look like Detroit.

"I didn't bilk that."

Fri, 06/14/2013 - 20:23 | 3659904 ncdirtdigger
ncdirtdigger's picture

So when are they going to build the Lions a (nother) new stadium? It's called an investment.

Fri, 06/14/2013 - 21:23 | 3659995 Nue
Nue's picture

Why aren't the Unions coming together to bail out their Mother City. Oh that right Union bosses would sell their own mothers if they could get a buck out of the deal.

Sat, 06/15/2013 - 01:26 | 3660385 22winmag
22winmag's picture

The Elephant has left the room.

Sat, 06/15/2013 - 06:31 | 3660522 overmedicatedun...
overmedicatedundersexed's picture

Saudi  or Iran will buy out detroit for the mecca of america--with a few conditions: sharia law, prayer 5 times daily. muslems only allowed in city limits..think it would never happen..watch. presto present population converted or else.

like greece islands soon most of America is on sale..diversity bitchez. diversity.

Sat, 06/15/2013 - 10:09 | 3660688 PoorByChoice
PoorByChoice's picture

"Focus is to Improve Delivery of Basic Services to 700,000 Detroit Residents"

 

 

It's taken the brink of bankruptcy for that to be the #1 aim of Detroits political rulers!

Shouldn't that be the prime directive of ANY local government?

Ohh... 

God I'm so naive

 

If Detroit had stuck rigidly to point 1 the other points wouldn't need to be proposed today

 

 

 

 

Sat, 06/15/2013 - 12:22 | 3660902 WallowaMountainMan
WallowaMountainMan's picture

people investing in high risk situations, be it city, county, state or country get a rate of interest that they (the investors) deem worth the risk.

no sympathy for the unsecured, some small amount for the 'secured', if and only if the rules are rewritten ex post facto. and that sympathy only extends to those who invested (gambled) prior to the great debacle.

 

Sat, 06/15/2013 - 20:06 | 3661651 monad
Sat, 06/15/2013 - 20:21 | 3661667 Promethus
Promethus's picture

How about a bail in from all the EBT card carrying members of the Obama Free Stuff Army currently occupying Detroit?

Sat, 06/15/2013 - 20:26 | 3661668 Promethus
Promethus's picture

Why would anyone want to work with or do a deal with someone who is offering you ten cents on the dollar for money they owe you? You can't do much worse in bankruptcy court.

Sun, 06/16/2013 - 01:30 | 3662086 analyzer_66
analyzer_66's picture

in the boon years of US automaking, the 1950s-1980s, Detroit was one of the MOST corrupt cities on the planet, this is simply the aftermath and the US Govt will likely see the same problem once the printing presses are shut down and the control of the currency is returned to the Treasury.

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