Detroit

rcwhalen's picture

Detroit Bankruptcy: U Turn by Michael Comes





After tens of millions in legal fees, a river of negative press, and ripple effects to other local municipalities, we have U-turned and are back to where we started.

 
Tyler Durden's picture

Frontrunning: April 10





  • J.P. Morgan's Dimon Describes Year of Pain (WSJ)
  • SAC Faces a Final Reckoning for 14 Years of Insider Scam (BBG)
  • New Standards for $693 Trillion Swaps Market Increase Risk of Blowup (BBG)
  • China says no major stimulus planned; March trade weak (Reuters)
  • As we said in 2012 would happen: Record Europe Dividends Keep $3 Trillion From Factories (BBG)
  • Blame it on the algo: Deutsche Bank Said to Find Improper Communication in FX Case (BBG)
  • Coke Sticks to Its Strategy While Soda Sales Slide (WSJ)
  • Ukraine’s Rust Belt Faces Ruin as Putin Threatens Imports (BBG)
  • RBC Joins Goldman in Suing Clients After Singapore Crash  (BBG)
  • U.S. House panel to look at aluminum prices, warehousing (Reuters)
  • Brooklyn Apartment Rents Jump to a Record as Leases Surge (BBG)
 
Tyler Durden's picture

This Is What Employment In America Really Looks Like...





The level of employment in the United States has been declining since the year 2000.  There have been moments when things have appeared to have been getting better for a short period of time, and then the decline has resumed.  Thanks to the offshoring of millions of jobs, the replacement of millions of workers with technology and the overall weakness of the U.S. economy, the percentage of Americans that are actually working is significantly lower than it was when this century began.  And even though things have stabilized at a reduced level over the past few years, it is only a matter of time until the next major wave of the economic collapse strikes and the employment level goes even lower.  And the truth is that more good jobs are being lost every single day in America. 

 
Tyler Durden's picture

The Shocking Truth About The Deindustrialization Of America That Everyone Should Know





How long can America continue to burn up wealth?  How long can this nation continue to consume far more wealth than it produces?  The trade deficit is one of the biggest reasons for the steady decline of the U.S. economy, but many Americans don't even understand what it is. Our current debt-fueled lifestyle is dependent on this cycle continuing.  In order to live like we do, we must consume far more wealth than we produce.  If someday we are forced to only live on the wealth that we create, it will require a massive adjustment in our standard of living.  We have become great at consuming wealth but not so great at creating it.  But as a result of running gigantic trade deficits year after year, we have lost tens of thousands of businesses, millions upon millions of jobs, and America is being deindustrialized at a staggering pace.

 
Tyler Durden's picture

The Chinese Are Buying Large Chunks Of Land Across America (And Zillow Is Now Enabling It)





Has the United States ever experienced a time when a foreign nation has attempted to buy up so much of our land all at once? As Michael Snyder details below, it appears the Chinese are on a real estate buying spree all over America as they are now the dominat 'buyers' of investment green cards. This is occurring as private equity buyers and hedge funds exit the buy-to-rent business en masse and are, as Mike Krieger explains, are desperate to pitch American property to anyone willing to keep Housing Bubble 2.0 inflated... it seems Zillow is more than happy to enable that, "Zillow agreed to make its U.S. property listings available to Chinese consumers through a partnership with a Beijing-based website."

 
Tyler Durden's picture

The Housing Bubble Is Still Raging In These 20 "Buy-To-Rent" Cities, And Burst In These 20 Others





As the following table also by RealtyTrace confirms, the US still has an abundance of "own-to-rent" cities, where one can generate a return as high as 30% in one year, if one is willing to drive through the downtown area at 65 mph. Places like bankrupt Detroit, where the median sales price is $45K, and somehow the average market rent is $1.1K, meaning one can recoup their investment in just over 3 years! (how Detroit's residents can afford $1K on rent is another of those great mysteries of life). In other words, the housing bubble will still be raging in these 20 cities, at least until such time as the yield drops sufficiently due to soaring prices that the Blackstones of the world are forced to dump other people's money in such undervalued places as Ulan Bator and Almaty.

 
ilene's picture

PITCHFORKS COME OUT AS CHINESE BUST KLEPTOCRATS





Being a kleptocratic crook in China is now becoming a higher risk proposition.

 
Tyler Durden's picture

Frontrunning: March 28





  • Crimea Resolution Backed by U.S. Barely Gets UN Majority (BBG)
  • Russian Buildup Stokes Worries (WSJ)
  • As reported here first: China’s Developers Face Shakeout as Easy Money Ends (BBG)
  • U.S. House Poised to Clear Sanctions Called Putin Warning (BBG)
  • Bitcoin Prices Plunge on Report PBOC Orders Accounts Shut (BBG)
  • Search for lost Malaysian jet shifts significantly after new lead (Reuters)
  • Russian fund taps China and Middle East (FT)
  • Long battle looms between U.S. college, athletes seeking to unionize (Reuters)
  • Official warns EU-US trade deal at risk over investor cases (FT)
  • New iPhone likely out in September, Nikkei daily says (AFP)
 
williambanzai7's picture

GReeTiNGS FRoM DeTRoiT...





The Maidan City...

 
Tyler Durden's picture

A Dark Cloud Of Disillusionment





The US would be better served these days to literally mind its own business. With Detroit in bankruptcy, why would we send Kiev billions of dollars? American urban infrastructures — water, sewer, gas, and electric lines — are falling apart. We have no idea how we’re going to manage most of the crucial economic activities of daily life in ten years, when the illusions of shale gas and shale evaporate in a dark cloud of disenchantment... We’re having no conversation about these things and the political landscape in this country is a wasteland of mirages and dust devils. That is the true weakness of the USA now. We’re incapable of seeing the disorder in our own house. Why should we even glance overseas at others?

 
Tyler Durden's picture

US Prepares To Provide A Billion To Ukraine As Detroit Plans Mass Water Shutoffs Over $260 Million





In order to enforce the fading Pax Americana in the Ukraine, and to keep the funding to the otherwise insolvent Ukraine flowing, which as everyone knows will be first and foremost used to pay Russia's Gazprom. So when it comes to priorities, whom does Putin have to thank for the billions in Western funds he is about to receive? Maybe he can start in Detroist where the local utility is planning mass water shutoffs over $260M in delinquent bills. In other words, while the US is enforcing some odd international law, according to which a democratic vote is not credible but a violent coup is, US citizens are about to have no drinking water over a paltry $260 million.

 
Tyler Durden's picture

Frontrunning: March 18





  • Lost Jet’s Path Seen as Altered via Computer (NYT)
  • Fed Links Low Rates to “Persistent Headwinds” in Economy (Hilsenrath)
  • Top German Court Clears Euro-Zone Bailout Fund (WSJ)
  • U.S., EU set sanctions as Putin recognizes Crimea "sovereignty" (Reuters)
  • Indian wealth effect: Sensex, Nifty hit life highs as domestic-focused firms rally (Reuters)
  • China bond default has positive effect on local government groups (FT) - unless it's negative
  • Russia tensions  risk higher gas prices (FT)
  • China Home-Price Growth Slows in Big Cities on Tight Credit (BBG)
  • ECB's Weidmann says German surpluses "here to stay" (Reuters)
  • Microsoft Office for iPad (AAPL) to be introduced this month (The Verge)
 
Tyler Durden's picture

GM Recalls Another 1.5 Million Cars; Halts Sales Until "Solution" Completed





General Motors is in trouble. On the heels of a 1.3 million car recall over fault ignition switches (that allegedly caused 12 deaths and could have been fixed with a $1 part), the bailed-out car maker has announced it will take a $300 million charge in Q1 to cover costs associated with this and 3 new recalls covering an additional 1.5 million cars. As Reuters reports, unsold vehicles will be placed on a stop-delivery until development of a solution has been completed. Why is this such a problem? Because GM's channel-stuffed dealer inventory is already at all-time record highs as the entire industry projected the sales to continue ad infinitum and inventory-to-sales surged to near-record highs.

 
Tyler Durden's picture

House Passes $1 Billion Ukraine Loan Guarantee, Gazprom Sends Thanks





The oligarchs have taken over the asylum:

  • *UKRAINE $1 BLN LOAN-GUARANTEE BILL PASSED BY U.S. HOUSE
  • *HOUSE VOTES 385-23 TO PASS $1 BLN UKRAINE LOAN GUARANTEE

We are sure the auditors will be aggressively checking that this money does not flow directly from the US to Ukraine to Gazprom. But notably, we suspect, Jordan and Tunisia might be pissed as they just lst their funding. Not so much for Detroit or Puerto Rico also...

 
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