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State Laying Groundwork for Managed Bankruptcy in Detroit

LowDown

LowDown

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State laying groundwork for managed bankruptcy for Detroit | The Detroit News | detroitnews.com

Even as the state Treasury prepares to begin another financial review of Detroit's books, a plan is being solidified in the governor's office that would guide Michigan's largest city through what is being called a managed bankruptcy.

The working concept, still evolving, assumes that the state's financial review would find severe financial distress in Detroit, that Mayor Dave Bing and City Council would be unable to push through overdue restructuring, and that the process would culminate in appointment of an emergency financial manager under Public Act 72.
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This is what one might call "end stage blue governance", which we see being manifested all over the country, but especially in California. There's nobody who can bail Detroit out, too much debt is involved and there's no political support for it.

Under this law the mayor and city council will literally be stripped of their authority, and the city will be run by the state government. The city is about a month away from running out of cash, and at that point an emergency financial manager will be appointed.

The mayor and city council for their part remain in denial. They have made no moves to avert the crisis at all, waiting like children for the grown ups to show up apparently.
 
LowDown said:
State laying groundwork for managed bankruptcy for Detroit | The Detroit News | detroitnews.com



This is what one might call "end stage blue governance", which we see being manifested all over the country, but especially in California. There's nobody who can bail Detroit out, too much debt is involved and there's no political support for it.

Under this law the mayor and city council will literally be stripped of their authority, and the city will be run by the state government. The city is about a month away from running out of cash, and at that point an emergency financial manager will be appointed.

The mayor and city council for their part remain in denial. They have made no moves to avert the crisis at all, waiting like children for the grown ups to show up apparently.
Click to expand...

conservatives love this type of news.
 
LowDown said:
State laying groundwork for managed bankruptcy for Detroit | The Detroit News | detroitnews.com

This is what one might call "end stage blue governance", which we see being manifested all over the country, but especially in California. There's nobody who can bail Detroit out, too much debt is involved and there's no political support for it.

Under this law the mayor and city council will literally be stripped of their authority, and the city will be run by the state government. The city is about a month away from running out of cash, and at that point an emergency financial manager will be appointed.

The mayor and city council for their part remain in denial. They have made no moves to avert the crisis at all, waiting like children for the grown ups to show up apparently.
Click to expand...

If that's true, then it's fortunate there's a Republican majority in their congress. Perhaps there is hope...
 
madman said:
conservatives love this type of news.
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Because it's the only way you liberals will pay attention. Sad thing is that even then a lot of you don't. You all think that only if I was in charge would things be different..


Tim-
 
madman said:
conservatives love this type of news.
Click to expand...

Love reading stories about how Democrats are running once vital cities into the ground? No, I don't like reading about such things, but the people should be warned.
 
I live near Stockton, Ca one of the biggest current bankruptcies. It's a scam, the bankruptcy, to me. Nothing changes for the union contracts, the retirement benefits are protected 100%, and so the only losers are those who leant the city money for physical projects like water lines, sewer lines and " buildings" which can't even be taken in any sense. Why any person would buy a "muni" bond today is beyond me. Stockton granted any employee with 30 days service LIFE TIME health insurance. And they will get to keep it even after the BK. city councils ... Best thing a union boss can buy!
 
As a former resident of the city Im not sure if this will make much difference, as Im not entirely convinced Detroit can be redeemed.
 
LowDown said:
Love reading stories about how Democrats are running once vital cities into the ground? No, I don't like reading about such things, but the people should be warned.
Click to expand...

And when conservatives policies fail, you never hear a peep.
 
madman said:
conservatives love this type of news.
Click to expand...

I'm not throwing a party, here. But EFMs have been employed across the state and many of the cities to which they've been assigned are shifting out of EFM control after reigning in serious budget deficits/debt issues. Others are slowly inching toward those goals.

Michigan Policy Network - Emergency Managers in Pontiac

State treasury: Flint emergency financial manager still needed | MLive.com

http://downriversundaytimes.com/2012/12/02/steps-made-toward-allen-park-efm-plan/

Hearing set for Benton Harbor financial proposal

...among others.
 
I just hope that the New Black Panthers don't follow through on their threat to "burn the city down" if the city files bankruptcy.

That could cause hundreds of dollars worth of damage.
 
madman said:
conservatives love this type of news.
Click to expand...

I'm not throwing a party, here. But EFMs have been employed across the state and many of the cities to which they've been assigned are shifting out of EFM control after reigning in serious budget deficits/debt issues. Others are slowly inching toward those goals.

Michigan Policy Network - Emergency Managers in Pontiac

State treasury: Flint emergency financial manager still needed | MLive.com

http://downriversundaytimes.com/2012/12/02/steps-made-toward-allen-park-efm-plan/

Hearing set for Benton Harbor financial proposal

...among others.
 
madman said:
And when conservatives policies fail, you never hear a peep.
Click to expand...

The mainstream media doesn't trumpet conservative policy failures? Which planet is that on?
 
LowDown said:
State laying groundwork for managed bankruptcy for Detroit | The Detroit News | detroitnews.com



This is what one might call "end stage blue governance", which we see being manifested all over the country, but especially in California. There's nobody who can bail Detroit out, too much debt is involved and there's no political support for it.

Under this law the mayor and city council will literally be stripped of their authority, and the city will be run by the state government. The city is about a month away from running out of cash, and at that point an emergency financial manager will be appointed.

The mayor and city council for their part remain in denial. They have made no moves to avert the crisis at all, waiting like children for the grown ups to show up apparently.
Click to expand...

What do you mean "especially in California"? California voters have figured out the perfect solution: Raise taxes yet again. Now that voters have approved the governor's request for more taxes, everything will be all better and the state will once again be solvent....


for a little while, anyway.
 
LowDown said:
Love reading stories about how Democrats are running once vital cities into the ground? No, I don't like reading about such things, but the people should be warned.
Click to expand...

Yeah...it was Democrats that ruined the rust belt and Detroit...not the "creative destruction" of Capitalism.
 
Diogenes said:
When did that ever happen? :shock:
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Orange County, CA, 1994

The county is famous for its tourism, as the home of such attractions as Disneyland and Knott's Berry Farm, as well as several beaches along its more than 40 miles (64 km) of coastline. It is known for its affluence and political conservatism – a 2005 academic study listed three Orange County cities as being among America's 25 "most conservative," making it one of two counties in the country containing more than one such city (Maricopa County, Arizona also has three cities on the list).
Orange County was at the time the largest US county to have gone bankrupt, when in 1994 longtime treasurer Robert Citron's investment strategies left the county with inadequate capital to allow for any raise in interest rates for its trading positions.
Click to expand...
 
iliveonramen said:
Yeah...it was Democrats that ruined the rust belt and Detroit...not the "creative destruction" of Capitalism.
Click to expand...

More like customers who don't want to pay higher prices for poor quality.

But let me guess: You blame management because they couldn't figure out how to keep prices down and quality up with expensive union labor.
 
LowDown said:
More like customers who don't want to pay higher prices for poor quality.

But let me guess: You blame management because they couldn't figure out how to keep prices down and quality up with expensive union labor.
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Prices of GM products were always pretty competitive. Design was the problem.
 
Dittohead not! said:

Orange County, CA, 1994
Click to expand...

"...when in 1994 longtime treasurer Robert Citron's investment strategies left the county with inadequate capital to allow for any raise in interest rates for its trading positions..."

Is that the only one you could find? No wonder I haven't heard of any lately. At any rate, conservative areas don't seem to be at the same level of risk for bankruptcy as liberal areas.
 
iliveonramen said:
Yeah...it was Democrats that ruined the rust belt and Detroit...not the "creative destruction" of Capitalism.
Click to expand...

Do unions vote Republican? If not, then yeah, it was Democrats that ruined the rust belt and Detroit.

Never fear! Michigan is about to become a right to work state, and that will be the beginning of a comeback. But I betcha the Dems are against any positive policy changes.
 
Isn't it about time to toss in the towel on detroit? How long have we been trying to save the city that based it's existence on a pretty singular thing? Now car manufacturing is done all over the place and detroit is never going to be what it was again. On top of that you have crappy weather, a burned out city, and no one in their right mind is going to put something there. Detroit is like a fixer upper in the middle of a bog.

What I am saying is it needs to fully collapse. It is now just a place for high priced politicians to pretend to be powerful. Detroit needs to find a sustainable level and it certainly is not that of a big city. So it needs to collapse and people need to move on. Yes, i know i am talking about peoples lives and this is cruel and all, but this sort of thing happens.
 
Diogenes said:
Do unions vote Republican? If not, then yeah, it was Democrats that ruined the rust belt and Detroit.

Never fear! Michigan is about to become a right to work state, and that will be the beginning of a comeback. But I betcha the Dems are against any positive policy changes.
Click to expand...

They can't come back, the jobs are already being done elsewhere. It would seem there is something to be said for the wastefullness of overinflated unions and how they will drive manufacturing elsewhere if you let them become to big. As for detroit the work is gone and there really is no reason to go back there.
 
tererun said:
They can't come back, the jobs are already being done elsewhere. It would seem there is something to be said for the wastefullness of overinflated unions and how they will drive manufacturing elsewhere if you let them become to big. As for detroit the work is gone and there really is no reason to go back there.
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Agreed that they won't go back to making Model T and Model A Fords, but an awful lot of vehicles are still made in this country. Over the last generation, those jobs have moved to right-to-work states in the south. In fact I read a few years ago that if you are into "Buy American" you should buy Honda or Toyota because they have more American content in them than the Big Three (which have a lot of Canadian labor in them). Those southern plants have been profitable because they pay as well as union jobs up north, but they don't have to comply with the union rules that are strangling the northern factories.
 
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