Detroit Bankrupt

I thought you were from Detroit, Tis?

You're not old enough to remember Motown, Tis .

It's a sad state of affairs. High crime led to vacant properties which led to more crime which led to more vacant properties. Horrible cycle. They said on the local news this morning that the population has shrunk from 2 million to 700,000, that only 40% of the street lights work in the city. They also gave numbers on vacant properties but I can't remember them and don't want to misquote.

Lets blame all the people who bought imported cars.

Lets blame all the people who bought imported cars.

some people let other things cloud their judgement

the citizens of Detroit didn't have shit to do with detroits economy crash

The white population’s abandonment of the city left Detroit with a shrinking tax base and deteriorating, segregated public schools — a system locked in place by a Supreme Court order that halted busing across school district lines. But blacks still in Detroit had one thing left — political power. And they would guard it jealously against any encroachment, real or imagined.

Thus, the city’s black political class sees conspiracy theories everywhere. The investigation of the last mayor by the Detroit Free Press, and his indictment by a prosecutor, are seen as a white conspiracy to undermine black “home rule” of Detroit. The governor’s appointment of an emergency financial manager, once it became clear that Detroit cannot manage its own fiscal affairs, is again seen as a hostile, racist takeover by the state over the city’s elected black leadership.

Racial politics, and that racial prism, long ago ruined Detroit, and now they hamper any chance the city has at a modest recovery. As a longtime friend, one who has stayed in Detroit and worked to help the city, once put it to me succinctly: “Some people would rather be the king of nothing than a part of something.”

The citizens of detriot were directly responsible for the fiscal situation. Nobody forced them to elect the progressive democrats, year after year after year, that destroyed the city's balance sheet with public sector union pensions and big-ticket development scams. To fund these unsustainable pensions they repeatedly raised taxes and made detriot extremely business hostile. This is really the turn of events now being seen in CA too- although perhaps little less "blue collar" like corruption that was going on in Detroit public office.

The other less mentioned for PC reasons for collapse was the rise of racial politics in the city of Detroit- as chronicaled in the Washington Post
http://www.washingtonpost.com/politics/d...4871_story.html



I expect other cities like LA to be next on the list. The unfunded pension liabilities in many CA cities are insane. This is the end game when economic realities finally hit the la-la land of political public sector union corruption and Keynesian Economics of "debts don't matter because we owe them to ourselves". Lot of good that did detriot.

As for the judge ruling this bankruptcy "unconstitutional" according to the Detroit Free Press, “the Michigan Constitution prohibits actions that will lessen the pension benefits of public employees.” Which means that, in Michigan, reality is unconstitutional. The creditors are hosed- whether or not bankruptcy is announced or not doesn't matter, nobody is left to make good on these promises.

I tried to make sense of this article and after re reading twice i still couldnt, maybe someone else might be able to understand it(it might help you find some1 to blame)

http://m.usatoday.com/article/news/2569481

Little Nicky, you hit it out of the park. Couldn't agree more

The citizens of detriot were directly responsible for the fiscal situation. Nobody forced them to elect the progressive democrats, year after year after year, that destroyed the city's balance sheet with public sector union pensions and big-ticket development scams. To fund these unsustainable pensions they repeatedly raised taxes and made detriot extremely business hostile. This is really the turn of events now being seen in CA too- although perhaps little less "blue collar" like corruption that was going on in Detroit public office.

The other less mentioned for PC reasons for collapse was the rise of racial politics in the city of Detroit- as chronicaled in the Washington Post
http://www.washingtonpost.com/politics/d...4871_story.html



I expect other cities like LA to be next on the list. The unfunded pension liabilities in many CA cities are insane. This is the end game when economic realities finally hit the la-la land of political public sector union corruption and Keynesian Economics of "debts don't matter because we owe them to ourselves". Lot of good that did detriot.

As for the judge ruling this bankruptcy "unconstitutional" according to the Detroit Free Press, “the Michigan Constitution prohibits actions that will lessen the pension benefits of public employees.” Which means that, in Michigan, reality is unconstitutional. The creditors are hosed- whether or not bankruptcy is announced or not doesn't matter, nobody is left to make good on these promises.

so the citizens of Detroit all got together and planned to ruin their city?

Wow, so ALL minorities just work the system and don't contribute? That's nice. Nope, no racists here.

And by the way. New York City was in its best economic shape when Rudy G was running it. He lowered the taxes. Im sure you forgot about that.

Enough with claiming everyone is racist when they say non-racist things. It's getting old.

I would just be more concerned by towns and cities that can't afford pension plans anymore than Texas, Florida, or Tennessee who are still going strong economic wise.

And using the term racist when it doesn't apply is truly a refuge for non thinkers. What I said was true.

They vote democrat for the entitlements. Is that actually up for dispute? Seriously. Thats a racist comment? If its racist, then the truth is racist. Like Dr. MLK said (a great african american, and a REPUBLICAN), "the truth shall set you free."

Yes, it is. Because you said that all minorities vote democrat so that they can work the system, freeload and suck from actual workers.

Yes, that's a racist statement. Because I know LOTS of minorities who work very hard and contribute LOTS to society. I know doctors and teachers and small businesspeople who are minorities. They all work, they all contribute to society, they don't freeload, I daresay that some of them might even be Republicans.

The white population’s abandonment of the city left Detroit with a shrinking tax base and deteriorating, segregated public schools — a system locked in place by a Supreme Court order that halted busing across school district lines. But blacks still in Detroit had one thing left — political power. And they would guard it jealously against any encroachment, real or imagined.

Thus, the city’s black political class sees conspiracy theories everywhere. The investigation of the last mayor by the Detroit Free Press, and his indictment by a prosecutor, are seen as a white conspiracy to undermine black “home rule” of Detroit. The governor’s appointment of an emergency financial manager, once it became clear that Detroit cannot manage its own fiscal affairs, is again seen as a hostile, racist takeover by the state over the city’s elected black leadership.

Racial politics, and that racial prism, long ago ruined Detroit, and now they hamper any chance the city has at a modest recovery. As a longtime friend, one who has stayed in Detroit and worked to help the city, once put it to me succinctly: “Some people would rather be the king of nothing than a part of something.”

So this bankruptcy is sad. But it was, in a sense, inevitable — the final chapter in Detroit’s long slide from glory. Maybe this will be the kind of shock therapy the city needs, the hammer blow that gets the remaining residents to stop living in the past, recognize that the old Detroit is never coming back, and start making the painful sacrifices necessary to build a new, smaller city with what’s left.

I hope so. But somehow I doubt it. If we Detroiters have one fault, it’s that we are addicted to nostalgia and living in our highly selective view of the past.

And do those unfunded liabilty issues exist in states historically controlled by the republican party?

Which states have the strongest economies by in large? STates that are more business friendly.

There are multiple reasons Detroit went under, and althought there are paople with various agendass who fit them to the situation there is no single cause. Paul Krugman has some good words on this.

As for the assertion that businesses like "business friendly" states, that is totally true, but then again what is "business freindly to one type of business is not so friendy to others. For example after all the textile industry moved from the South to Asia, there were a bunch of poor states with lots of low to mediaum skill labor who would jump at the chance to make cars, so you see an exodus from Michigan and you see all the foreign car companies moving in to South Carolina, Mississippi, etc, where there is no union protection, low wages, low taxes, etc. This is "business friendlt" for the auto manufacuring industry. Banking on the other hand, and all financial trading does better in New York, and the whole DC-Boston corridor. Why? Because the best schools and culture are there, and their employees demand that standard of living. It is more costly, but overall it is more "business friendly" to that kind of business. Ditto for the Northwest and Northern California where much of the hi tech stuff is. Again, a climate amenable to people in that industry, good schools, laid back lifestyle....business friendly for that kind of business. I could go on but the point is made. When words like "business friendly" start getting tossed around it leads some ignorant people to think it means low taxes and no regulation. This is not the case in all business, and so it should not become a clarion call for the "no gevernment" agenda favored by the tea baggers.