Page 1 of 5 123 ... LastLast
Results 1 to 10 of 42

Thread: Detroit bankruptcy moves forward as judge rules city can shed debt

  1. #1
    Sage
    Fenton's Avatar
    Join Date
    Nov 2012
    Last Seen
    Today @ 03:34 PM
    Gender
    Lean
    Conservative
    Posts
    26,328

    Detroit bankruptcy moves forward as judge rules city can shed debt

    Detroit bankruptcy moves forward as judge rules city can shed debt | Fox News

    " Detroit's historic bankruptcy will move forward after a judge ruled Tuesday that the financially crumbling city is eligible to shed billions in debt.

    Judge Steven Rhodes turned down objections from unions, pension funds and retirees, which all stand to lose big under any plan to address Detroit's long-term liabilities.

    The decision Tuesday was long-awaited, and clears the way for the city to proceed in the largest public bankruptcy in U.S. history.

    "This once proud and prosperous city can't pay its debts. It's insolvent. It's eligible for bankruptcy," Rhodes said in announcing his decision. "At the same time, it also has an opportunity for a fresh start."

    The plan isn't on the judge's desk yet. The issue for Rhodes, who presided over a nine-day trial, was whether Detroit met specific conditions under federal law to stay in bankruptcy court and turn its finances around after years of mismanagement, chronic population loss and collapse of the middle class.

    The city has argued that it needs bankruptcy protection for the sake of beleaguered residents suffering from poor services such as slow to nonexistent police response, darkened streetlights and erratic garbage pickup -- a concern mentioned by the judge during the trial.

    Before the July filing, nearly 40 cents of every dollar collected by Detroit was used to pay debt, a figure that could rise to 65 cents without relief through bankruptcy, according to the city. "
    The New Democratic Party Slogan :

    " Return to Power By Any Means Necessary "

  2. #2
    Sage
    Fenton's Avatar
    Join Date
    Nov 2012
    Last Seen
    Today @ 03:34 PM
    Gender
    Lean
    Conservative
    Posts
    26,328

    re: Detroit bankruptcy moves forward as judge rules city can shed debt

    Damn, pension funds are short 3.5 Billion.

    Some of the reasons that caused this, other than corrupt and criminal politicians ripping the city off and having " Hoe-Party's " in the Mayoral Mansion...

    Taxing higher and higher: City leaders tried repeatedly to reverse sliding revenue through new taxes. Despite a new income tax in 1962, a new utility tax in 1971 and a new casino revenue tax in 1999 — not to mention several tax increases along the way — revenue in today’s dollars fell 40% from 1962 to 2012. Higher taxes helped drive residents to the suburbs and drove away business. Today, Detroit still doesn’t take in as much tax revenue as it did just from property taxes in 1963.

    Downsizing — too little, too late: The total assessed value of Detroit property — a good gauge of the city’s tax base and its ability to pay bills — fell a staggering 77% over the past 50 years in today’s dollars. But through 2004, the city cut only 28% of its workers, even though the money to pay them was drying up. Not until the last decade did Detroit, in desperation, cut half its workforce. The city also failed to take advantage of efficiencies, such as new technology, that enabled enormous productivity gains in the broader economy.

    Skyrocketing employee benefits: City leaders allowed legacy costs — the tab for retiree pensions and health care — to spiral out of control even as the State of Michigan and private industry were pushing workers into less costly plans. That placed major stress on the budget and diverted money from services such as streetlights and public safety. Detroit’s spending on retiree health care soared 46% from 2000 to 2012, even as its general fund revenue fell 20%.

    Gifting a billion in bonuses: Pension officials handed out about $1 billion in bonuses from the city’s two pension funds to retirees and active city workers from 1985 to 2008. That money — mostly in the form of so-called 13th checks — could have shored up the funds and possibly prevented the city from filing for bankruptcy. If that money had been saved, it would have been worth more than $1.9 billion today to the city and pension funds, by one expert’s estimate

    Borrowing more and more: Detroit went on a binge starting around 2000 to close budget holes and to build infrastructure, more than doubling debt to $8 billion by 2012. Under Archer, Detroit sold water and sewer bonds. Kilpatrick, who took office in 2002, used borrowing as his stock answer to budget issues, and Bing borrowed more than $250 million.

    Adding the last straw — Kilpatrick’s gamble: He’s best known around the globe for a sex and perjury scandal that sent him to jail and massive corruption that threatens to send him to prison next month for more than 20 years. The corruption cases further eroded Detroit’s image and distracted the city from its fiscal storm. But perhaps the greatest damage Kilpatrick did to the city’s long-term stability was with Wall Street’s help when he borrowed $1.44 billion in a flashy high-finance deal to restructure pension fund debt. That deal, which could cost $2.8 billion over the next 22 years, now represents nearly one-fifth of the city’s debt.


    How Detroit went broke: The answers may surprise you — and don't blame Coleman Young | Detroit Free Press | freep.com
    The New Democratic Party Slogan :

    " Return to Power By Any Means Necessary "

  3. #3
    Sage
    Anthony60's Avatar
    Join Date
    Mar 2013
    Location
    Northern New Jersey
    Last Seen
    Today @ 03:21 PM
    Gender
    Lean
    Conservative
    Posts
    7,590

    re: Detroit bankruptcy moves forward as judge rules city can shed debt

    Quote Originally Posted by Fenton View Post
    Detroit bankruptcy moves forward as judge rules city can shed debt | Fox News

    " Detroit's historic bankruptcy will move forward after a judge ruled Tuesday that the financially crumbling city is eligible to shed billions in debt.
    Total, unabashed liberalism on display. They had full control of this city for decades, and you see all their Utopian plans on display. Raise taxes, out of control spending, overpay all the workers. Ignore the free market forces, ignore capitalism. This what you get. Well, libs, what would you have done differently? Maybe they didn't raise taxes enough on the rich? LOL!
    The horrifying part about this is that they will not learn a thing from this. Look at what Obama is doing. Oh yeah, didn't he promise that he would not allow Detroit to go bankrupt? Not that he lies much.
    "We have met the enemy and they are ours..." -- Oliver Hazard Perry
    "I don't want a piece of you... I want the whole thing!" -- Bob Barker

  4. #4
    The Dude
    Kobie's Avatar
    Join Date
    Sep 2013
    Location
    Western NY
    Last Seen
    Today @ 02:22 PM
    Gender
    Lean
    Liberal
    Posts
    42,919

    re: Detroit bankruptcy moves forward as judge rules city can shed debt

    Quote Originally Posted by Anthony60 View Post
    Total, unabashed liberalism on display. They had full control of this city for decades, and you see all their Utopian plans on display. Raise taxes, out of control spending, overpay all the workers. Ignore the free market forces, ignore capitalism. This what you get. Well, libs, what would you have done differently? Maybe they didn't raise taxes enough on the rich? LOL!
    Never mind, of course, that Michigan has a long record of Republican leadership on the state level. Part of Detroit's woes falls on the state, too, unless you're just going to blame Kwame Kilpatrick for EVERYTHING.

    That said, if you think the excesses of one particular set of politicians is somehow an indictment of liberal thought, then you're a hopeless partisan and it's useless attempting to engage in reasonable discourse with you.

    Quote Originally Posted by Anthony60 View Post
    The horrifying part about this is that they will not learn a thing from this. Look at what Obama is doing. Oh yeah, didn't he promise that he would not allow Detroit to go bankrupt? Not that he lies much.
    It's patently obvious to anyone with two brain cells to rub together that when Obama said "Detroit," he was referring to the auto industry. Specifically because he was comparing the auto bailout to Romney's statements that he wouldn't have done it.

    "Just a few years ago, the auto industry wasn't just struggling - it was flatlining," Mr. Obama said. "GM and Chrysler were on the verge of collapse. Suppliers and distributors were at risk of going under. More than a million jobs across the country were on the line - and not just auto jobs, but the jobs of teachers, small business owners, and everyone in communities that depend on this great American industry."

    His administration, he argues, "refused to throw in the towel and do nothing. We refused to let Detroit go bankrupt. We bet on American workers and American ingenuity, and three years later, that bet is paying off in a big way."
    Don't be dishonest.

    Obama: I "refused to let Detroit go bankrupt" - CBS News
    Freedom of speech is not freedom from criticism.

  5. #5
    Preserve Protect Defend
    Beaudreaux's Avatar
    Join Date
    Sep 2012
    Location
    Covfefe, NC
    Last Seen
    Today @ 10:22 AM
    Gender
    Lean
    Undisclosed
    Posts
    15,566

    Re: Detroit bankruptcy moves forward as judge rules city can shed debt

    Let's all celebrate the success of the Grand Experiment...


  6. #6
    Banned
    Join Date
    May 2011
    Location
    Where they have FOX on in bars and restaurants
    Last Seen
    09-14-14 @ 02:09 PM
    Gender
    Lean
    Independent
    Posts
    14,700

    Re: Detroit bankruptcy moves forward as judge rules city can shed debt

    Quote Originally Posted by Kobie View Post
    Never mind, of course, that Michigan has a long record of Republican leadership on the state level. Part of Detroit's woes falls on the state, too, unless you're just going to blame Kwame Kilpatrick for EVERYTHING.

    That said, if you think the excesses of one particular set of politicians is somehow an indictment of liberal thought, then you're a hopeless partisan and it's useless attempting to engage in reasonable discourse with you.



    It's patently obvious to anyone with two brain cells to rub together that when Obama said "Detroit," he was referring to the auto industry. Specifically because he was comparing the auto bailout to Romney's statements that he wouldn't have done it.



    Don't be dishonest.

    Obama: I "refused to let Detroit go bankrupt" - CBS News
    Michigan isn't bankrupt, Detroit is.

  7. #7
    The Dude
    Kobie's Avatar
    Join Date
    Sep 2013
    Location
    Western NY
    Last Seen
    Today @ 02:22 PM
    Gender
    Lean
    Liberal
    Posts
    42,919

    Re: Detroit bankruptcy moves forward as judge rules city can shed debt

    Quote Originally Posted by sawyerloggingon View Post
    Michigan isn't bankrupt, Detroit is.
    I understand that; however, I would say the state government bears at least some share of responsibility for the fate of Detroit, wouldn't you?
    Freedom of speech is not freedom from criticism.

  8. #8
    Sage
    Born Free's Avatar
    Join Date
    Sep 2011
    Location
    Sonny and Nice
    Last Seen
    Today @ 01:30 PM
    Lean
    Conservative
    Posts
    6,396

    Re: Detroit bankruptcy moves forward as judge rules city can shed debt

    Quote Originally Posted by Kobie View Post
    Never mind, of course, that Michigan has a long record of Republican leadership on the state level. Part of Detroit's woes falls on the state, too, unless you're just going to blame Kwame Kilpatrick for EVERYTHING.
    We are talking about Detroit, not Michigan.

    That said, if you think the excesses of one particular set of politicians is somehow an indictment of liberal thought, then you're a hopeless partisan and it's useless attempting to engage in reasonable discourse with you.
    Liberals (Democrats)have been in control of Detroit forever. Please advise is I'm wrong.

    It's patently obvious to anyone with two brain cells to rub together that when Obama said "Detroit," he was referring to the auto industry. Specifically because he was comparing the auto bailout to Romney's statements that he wouldn't have done it.
    Detroit is the auto industry, or the auto industry is Detroit. Take your pick
    Liberals - Punish the Successful, Reward the Unsuccessful
    Liberals - Tax, Borrow, Spend, and Give Free Stuff
    Obama's legacy - President Donald Trump

  9. #9
    Banned
    Join Date
    May 2011
    Location
    Where they have FOX on in bars and restaurants
    Last Seen
    09-14-14 @ 02:09 PM
    Gender
    Lean
    Independent
    Posts
    14,700

    Re: Detroit bankruptcy moves forward as judge rules city can shed debt

    Quote Originally Posted by Kobie View Post
    I understand that; however, I would say the state government bears at least some share of responsibility for the fate of Detroit, wouldn't you?
    No I would not. Detroit is a cess pool of liberals and unions and they did this to themselves.

  10. #10
    The Dude
    Kobie's Avatar
    Join Date
    Sep 2013
    Location
    Western NY
    Last Seen
    Today @ 02:22 PM
    Gender
    Lean
    Liberal
    Posts
    42,919

    Re: Detroit bankruptcy moves forward as judge rules city can shed debt

    Quote Originally Posted by sawyerloggingon View Post
    No I would not. Detroit is a cess pool of liberals and unions and they did this to themselves.
    This guy disagrees.

    State could have prevented Detroit bankruptcy, says professor studying struggling U.S. cities | MLive.com

    It's fun to blame everything bad on "liberals and unions," but it's bull****.
    Freedom of speech is not freedom from criticism.

Page 1 of 5 123 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •