Ouch: Detroit files for biggest municipal bankruptcy in U.S. history

posted at 6:11 pm on July 18, 2013 by Erika Johnsen

It’s happened. The long and defiant march of progressive policies has finally succeeded in fully transforming Detroit from a mid-century bastion of middle-class prosperity to one of the biggest and brokest cities in America. After a review declared the city to be in a state of financial emergency earlier this year and Gov. Rick Synder invoked a rule allowing him to appoint an emergency manager to try and pull Detroit back from the fiscal abyss, they’ve spent months trying to negotiate a way out of it — with creditors to accept fractions of what they’re owed, with unions to cut benefits, and etc — but alas, it was too little, too late for the financially beleaguered city. Via WaPo:

Detroit on Thursday became the largest city in U.S. history to file for bankruptcy, as the state-appointed emergency manager filed for Chapter 9 protection.

Kevyn Orr, a bankruptcy expert, was hired by the state in March to lead Detroit out of a fiscal free-fall and made the filing Thursday in federal bankruptcy court.

A number of factors — most notably steep population and tax base falls — have been blamed on Detroit’s tumble toward insolvency. Detroit lost a quarter-million residents between 2000 and 2010. A population that in the 1950s reached 1.8 million is struggling to stay above 700,000. Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.

Orr was unable to convince a host of creditors, the city’s union and pension boards to take pennies on the dollar to help facilitate the city’s massive financial restructuring. If the bankruptcy filing is approved, city assets could be liquidated to satisfy demands for payment.

Orr and company have been warning for months that without major sacrificies from bondholders, pensions, and unions alike in reworking the more than $18 billion the city owes, they would definitely end up needing to declare bankruptcy, cautioning that there would otherwise really be no way to turn this ship around, but nothing doing. Perhaps sensing the inevitable, just yesterday two of Detroit’s pension funds filed suit against Orr and Gov. Snyder, asking that a court find that a potential bankruptcy filing would conflict with the state’s constitutional protection of public retirees’ rights — but it’s probably happening anyway.

Orr already halted payments on about $2 billion in debt last month, saying the city needed to preserve its dwindling supply of cash. His reorganization plan calls for cutting $11.5 billion in unsecured debt — including pensions, health care funds and loans not backed by assets — down to $2 billion. That would mean that investors and retirees would receive an average of just 17% of what they are owed. Specific plans for the cuts are unknown at this time. …

Cutting retiree’s pensions in a municipal bankruptcy has never been done before, said Michael Sweet, a California bankruptcy attorney who is an expert in public sector bankruptcies. …

Sweet said case law on whether pensions can be cut this way is very limited, and it could take years for a court fight over pension cuts to work its way to the U.S. Supreme Court. Given the poor state of funding for many public sector pension funds nationwide, “it’s a big enough question, that (the Supreme Court) is where it likely will have to go,” he said. …

Snyder spokeswoman Sara Wurfel said the decision to file for bankruptcy came after careful deliberation.

“This has been a huge problem for decades and it’s come to a crisis point,” she said. “The emergency manager tried to work with all the creditors, including pensioners.”

And yes, before you ask — saddled with the end result of years of blatantly unsustainable levels of public spending, the city did indeed appeal to the White House for a bailout. The WSJ reports:

Any hope of a federal bailout to avert bankruptcy fizzled last week after Mr. Orr spoke with the White House, including Obama confidante Valerie Jarrett, according to city and White House officials.

Ahem.

Says Walter Russell Mead:

Detroit has been spending on average $100 million more than it has taken in for each of the past five years. The city’s $11 billion in unsecured debt includes $6 billion in health and other retirement benefits and $3 billion in retiree pensions for its 20,000 city pensioners, who are slated to receive less than 10 percent of what they were promised. Between 2007 and 2011, an astounding 36 percent of residents lived below the poverty line….

Progressive politicians, wonks, and activists can only blame big corporations and other liberal bogeymen for so long. The truth is that corrupt machine politics in a one-party system devoted to the blue social model wrecked an entire city and thousands of lives beyond repair.


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How long until somebody blames it on the Republicans?

gator70 on July 18, 2013 at 6:20 PM

‘Detroit is roaring back!’

- Barack Obama

Oops!

Resist We Much on July 18, 2013 at 6:20 PM

How long until somebody blames it on the Republicans?

gator70 on July 18, 2013 at 6:20 PM

Undoubtedly, not long….even though Detroit hasn’t had a Republican mayor in 51 years.

Resist We Much on July 18, 2013 at 6:21 PM

San Francisco, L. A., New York, why are those lefty bastions not also in bankruptcy court?

DFCtomm on July 18, 2013 at 6:21 PM

Detroit, Democrat paradise.

gsherin on July 18, 2013 at 6:21 PM

Gravity

Bmore on July 18, 2013 at 6:22 PM

Well, the Democrats successfully destroyed those evil dehumanizing industrial jobs and are well on their way to successfully reclaiming the Detroit Metro area for wilderness purposes through controlled denial of utilities and uncontrolled burns…

What’s not to like?

ebrown2 on July 18, 2013 at 6:23 PM

“Dammit! Our economic policies weren’t retarded enough!”

squint on July 18, 2013 at 6:24 PM

Congrats to the Democrat party for officially killing a once-great city today.

http://thehayride.com/2013/07/mission-accomplished-detroit-files-bankruptcy/

MacAoidh on July 18, 2013 at 6:25 PM

Will it be a GM type of bailout. I say no.

Bmore on July 18, 2013 at 6:25 PM

San Francisco, L. A., New York, why are those lefty bastions not also in bankruptcy court?

DFCtomm on July 18, 2013 at 6:21 PM

LA and NYC might go bankrupt, but SF is full of well-off libs who will keep it afloat.

Ward Cleaver on July 18, 2013 at 6:26 PM

But….but…but this can’t be! Deee-troit is a Democratic “Worker’s Paradise”. All of the liberal economic theories have been applied here!

It’s all Bush’s fault!

So let’s see those union workers and pensioners collect now. Pretty hard to get money out of a dead horse.

Time to elect another set of Democrats to run the city. Are there any who aren’t in prison and can run for office?

GarandFan on July 18, 2013 at 6:26 PM

The petri dish for experimental liberalism on display for the world to see.

Rachel Jentel for Mayor!

portlandon on July 18, 2013 at 6:27 PM

How long until somebody blames it on the Republicans?

gator70 on July 18, 2013 at 6:20 PM

Undoubtedly, not long….even though Detroit hasn’t had a Republican mayor in 51 years.

Resist We Much on July 18, 2013 at 6:21 PM

Why let logic get in the way of stupidity?

squint on July 18, 2013 at 6:27 PM

How very progressive!

Schadenfreude on July 18, 2013 at 6:27 PM

How long until somebody blames it on the Republicans?

gator70 on July 18, 2013 at 6:20 PM

Well of course we should blame them. The ones of elected Republicans in Detroit did nothing to help the Dems fix that mess.

Doughboy on July 18, 2013 at 6:27 PM

Democrat/Criminal/Liberal/Progressive end results in Real Time.

But of course we’re only going to hear “But..but..but..this, that and the other”

BigWyo on July 18, 2013 at 6:27 PM

Sweet said case law on whether pensions can be cut this way is very limited,

LOL. If there’s no money, there’s no money. Do these people think the courts can create money? These idiots are too funny.

Frankly, the pensions and the people who negotiated them should not only be cut but should be shown to be sucking the public coffers dry, with all those who signed the deals standing trial for defrauding the public and stealing from government.

ThePrimordialOrderedPair on July 18, 2013 at 6:28 PM

Islam will fill the void. Think Dearborn.

Bmore on July 18, 2013 at 6:28 PM

San Francisco, L. A., New York, why are those lefty bastions not also in bankruptcy court?

DFCtomm on July 18, 2013 at 6:21 PM

New York only narrowly dodged that bullet back in 1975 because Ed Koch and the Democrats in Albany had functioning brain cells and didn’t let themselves get buffaloed into truckling to the left-collectivist brats in NYC.

ebrown2 on July 18, 2013 at 6:29 PM

The petri dish for experimental liberalism on display for the world to see.

Rachel Jentel for Mayor!

portlandon on July 18, 2013 at 6:27 PM

Hear, hear! She be edumacated good.

ThePrimordialOrderedPair on July 18, 2013 at 6:29 PM

The petri dish for experimental liberalism on display for the world to see.

Rachel Jentel for Mayor!

portlandon on July 18, 2013 at 6:27 PM

Honestly, I don’t think she could do any worse. Maybe better.

oldroy on July 18, 2013 at 6:29 PM

I was originally from Mt Clemens, MI an area north of Detroit. I have many memories of “old Detroit.” The prim well kept Polish neighborhoods, White Castle on the intersection of 12 mile and Gratiot, Marcus burgers, Penobscot building and fireworks on Belle Isle in the hot summer. My dad worked at Chrysler through the Great Depression, supporting 2 families. He played a gold plated tenor banjo at speakeasies. Also, during prohibition he’d tow a sled full of booze from Windsor to Detroit over the frozen Detroit river.

This is all so sad. Their was kind of an unwritten rule. Never go deeper into Detroit than 8 Mile Road, any further in and you might not make it out alive.

mike3121 on July 18, 2013 at 6:29 PM

Perhaps sensing the inevitable, just yesterday two of Detroit’s pension funds filed suit against Orr and Gov. Snyder, asking that a court find that a potential bankruptcy filing would conflict with the state’s constitutional protection of public retirees’ rights — but it’s probably happening anyway.

The State Constitution apparently ended up forcing the bankuptcy. If the city did not file bankruptcy, the unions were guaranteed to sue for the State to uphold the nebulous words in the State Constitution. By filing for bankruptcy, a Federal bankruptcy judge will decided about the pension, and there is a lot of legal precedent on that one.

Either way lawsuits, but outside of bankruptcy court, the suits could go on forever, up to the Supreme Court and the State Constitution could be interpreted into unknown territory

My understanding is the negotiators tried to get folk to settle, because a bankruptcy judge could negate union contracts, and pension plans, but hey, why get real

I like this guy Orr. He is a class act

entagor on July 18, 2013 at 6:29 PM

The truth is that corrupt machine politics in a one-party system devoted to the blue social model wrecked an entire city and thousands of lives beyond repair.

The truth is that corrupt D.C. machine politics in a one-party oligarchic system (Dems & Repubs) devoted to the blue social model wrecks an entire NATION and Millions of lives beyond repair.

journeymike on July 18, 2013 at 6:30 PM

San Francisco, L. A., New York, why are those lefty bastions not also in bankruptcy court?

DFCtomm on July 18, 2013 at 6:21 PM

Detroit ran out of people to tax.
San Francisco people love to pay tax.
New York people love to pay tax.
Los Angeles still have people to tax.

portlandon on July 18, 2013 at 6:30 PM

Why let logic get in the way of stupidity?

squint on July 18, 2013 at 6:27 PM

We’ve seen the left-collectivist swine living by that motto this week with Mr. Zimmerman’s acquittal.

ebrown2 on July 18, 2013 at 6:30 PM

How long until somebody blames it on the Republicans?

gator70 on July 18, 2013 at 6:20 PM

They were blamed before you asked the question.

Steve Eggleston on July 18, 2013 at 6:30 PM

It’s all Buoosch’s fault!

And the Lions will suk again too…

kirkill on July 18, 2013 at 6:31 PM

The petri dish for experimental liberalism on display for the world to see.

Rachel Jentel for Mayor!

portlandon on July 18, 2013 at 6:27 PM

They already had worse on the city council.

Ward Cleaver on July 18, 2013 at 6:33 PM

So, no Obama stash then?

txhsmom on July 18, 2013 at 6:33 PM

Perhaps sensing the inevitable, just yesterday two of Detroit’s pension funds filed suit against Orr and Gov. Snyder, asking that a court find that a potential bankruptcy filing would conflict with the state’s constitutional protection of public retirees’ rights — but it’s probably happening anyway.

If my very-limited understanding of the law is correct, that lawsuit is now moot with the filing of bankruptcy. The unions are, of course, free to reformulate their challenge in bankruptcy court, but given normal (i.e. non-Government/UAW Motors) bankruptcy order, the best they can hope for is $2 billion (the entirety of debt that isn’t otherwise secured) on their $9.2 billion.

Steve Eggleston on July 18, 2013 at 6:35 PM

‘Detroit is roaring back!’
– Barack Obama

Oops!
Resist We Much on July 18, 2013 at 6:20 PM

It just sounded like it… it was really flatulence.
Now it’s gases from decomposition.

Marcola on July 18, 2013 at 6:36 PM

Will it be a GM type of bailout. I say no.

Bmore on July 18, 2013 at 6:25 PM

That’s the only type the leeches of Detroit will accept. Never mind there isn’t enough cash in the till to fully-fund the pensions even to the exclusion of every other debt they rung up.

Steve Eggleston on July 18, 2013 at 6:39 PM

Now we know what fundamental transformation looks like.

deimos on July 18, 2013 at 6:39 PM

Ouch: Detroit files for biggest municipal bankruptcy in U.S. history

Soon to be followed by a flood of related small/mid-size business and personal bankruptcies.

Marcola on July 18, 2013 at 6:40 PM

Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.

Until those idiots in Detroit honestly admit why that is, they’ll never be solvent even if the bankruptcy goes through.

Rinse and repeat. Idiocy and ignorance will not wash out.

BacaDog on July 18, 2013 at 6:42 PM

This is the America we can look forward to in just a few years.

oldroy on July 18, 2013 at 6:43 PM

The city’s $11 billion in unsecured debt includes $6 billion in health and other retirement benefits and $3 billion in retiree pensions for its 20,000 city pensioners, who are slated to receive less than 10 percent of what they were promised.

I’d say that there will be riots.

But it’s Detroit. No sense being redundant…

JohnGalt23 on July 18, 2013 at 6:43 PM

Hey who not have Obama just send them a Trillion Dollar Coin?

sharrukin on July 18, 2013 at 6:43 PM

Obligatory video that is a bit older than Crowder’s classic reposted in the Green Room.

Seriously, we’ve known Detriot…er, Detroit has been a hell-hole for over 30 years.

Steve Eggleston on July 18, 2013 at 6:44 PM

Detroit is the Petri dish of Liberalism. This is what over half a century of Leftist policies will get you. California is next, then, if we don’t change, the rest of the U.S.

eMatters on July 18, 2013 at 6:44 PM

Dear Leader is doing the same thing to America…

d1carter on July 18, 2013 at 6:47 PM

Perhaps sensing the inevitable, just yesterday two of Detroit’s pension funds filed suit against Orr and Gov. Snyder, asking that a court find that a potential bankruptcy filing would conflict with the state’s constitutional protection of public retirees’ rights

I predict that some judge will issue a court order to the state of Michigan to bail out the pension funds.

Rich H on July 18, 2013 at 6:48 PM

Rachel Jentel for Mayor!

portlandon on July 18, 2013 at 6:27 PM

I thought she was already mayor.

DFCtomm on July 18, 2013 at 6:48 PM

This is what happens when the “cultural capital” of a dark-blue city runs out. They can no longer attract enough middle-income earners to pay for their economically-backwards policies.

Luckily for them, places like Chicago, NYC, etc. have a lot more cultural capital to sustain them for a while. They’re still “cool” enough to attract young people to stay and live and put up with backwards, onerous, and expensive regulations and all the waste, fraud and abuse that goes along with that. But once the bad starts to outweigh the coolness factor the young middle-income families will flee. Then the downward spiral begins.

visions on July 18, 2013 at 6:49 PM

I’d say that there will be riots.

But it’s Detroit. No sense being redundant…

JohnGalt23 on July 18, 2013 at 6:43 PM

Just schedule them for Devil’s Night. No one will notice.

Rich H on July 18, 2013 at 6:50 PM

I don’t know which liberal-run city is next to file, but Philadelphia is well on its way to getting there. Cesspools.

Philly on July 18, 2013 at 6:51 PM

The truth is that corrupt D.C. machine politics in a one-party oligarchic system (Dems & Repubs) devoted to the blue social model wrecks an entire NATION and Millions of lives beyond repair.

journeymike on July 18, 2013 at 6:30 PM

Yes, we are seeing the same slow motion train wreck on two different scales.

dogsoldier on July 18, 2013 at 6:51 PM

Hey who not have Obama just send them a Trillion Dollar Coin?

sharrukin on July 18, 2013 at 6:43 PM

They couldn’t make change.

Bmore on July 18, 2013 at 6:52 PM

Just schedule them for Devil’s Night. No one will notice.

Rich H on July 18, 2013 at 6:50 PM

I read they’ve been having a lot more fires than usual, lately. How will the city pay cops and firefighters? Teachers? Wow what a mess.

dogsoldier on July 18, 2013 at 6:53 PM

Thanks, unions!

Philly on July 18, 2013 at 6:55 PM

San Francisco, L. A., New York, why are those lefty bastions not also in bankruptcy court?

DFCtomm on July 18, 2013 at 6:21 PM

Its also because at least in NYC’s case, its not a one party town or state. Its full on commie and liberal lite, but the liberal lites have been slowing the slide. Plus they used to have to make sure the state pensions were properly funded. I don’t know if they still do. And the libs haven’t had 51 years+ of uncontested rule in the city or state. Same with Kahlifornia.

Iblis on July 18, 2013 at 6:58 PM

Undoubtedly, not long….even though Detroit hasn’t had a Republican mayor resident in 51 years.

Resist We Much on July 18, 2013 at 6:21 PM

Edited for accuracy :-)

Oldnuke on July 18, 2013 at 7:00 PM

Raze it to the ground. Summon conservatives to build a real workers’ utopia.

Call it the City of Texas, Michigan.

StubbleSpark on July 18, 2013 at 7:00 PM

Has the worthless City Council been dismissed and locked out of City Hall yet? Every elected position in Detroit should be.

slickwillie2001 on July 18, 2013 at 7:04 PM

The grocery stores have all moved out of the neighborhoods due to theft and hot checks but on the plus side you can buy all of the crack you need.

docflash on July 18, 2013 at 7:05 PM

Asked about their role in bringing about the city’s downfall, SEIU was unavailable for comment. /s

Mallard T. Drake on July 18, 2013 at 7:05 PM

We’re not Detroit!

- The City of Cleveland

Myron Falwell on July 18, 2013 at 7:05 PM

In October of 2012, President Barack Obama triumphantly declared he “refused to throw in the town” and “let Detroit go bankrupt.”

“We 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,” Obama said in his weekly address.

http://www.theblaze.com/stories/2013/07/18/obama-flashback-we-refused-to-let-detroit-go-bankrupt/

————–
The unsuspecting US citizenry is likely unaware of yet is that once again the municipal workers’ pension plans (that face 90% losses) will be bailed-out via the Pension Benefits Guaranty Corporation (PBGC) – A US Government (ponzi) Agency.

albill on July 18, 2013 at 7:07 PM

there was not a single private investor willing to invest or loan the funds needed to save Detroit.
 
bayam on October 22, 2012 at 10:28 PM

rogerb on July 18, 2013 at 7:07 PM

Ouch: Detroit files for biggest municipal bankruptcy in U.S. history

Forward.

Dr. ZhivBlago on July 18, 2013 at 7:08 PM

I read they’ve been having a lot more fires than usual, lately. How will the city pay cops and firefighters? Teachers? Wow what a mess.

dogsoldier on July 18, 2013 at 6:53 PM

Yesterday, Orr announced he reached a deal with UBS and Merrill Lynch/Bank of America to reorganize $340 billion in secured credit swaps insured by Syncora into $255 billion in a DIP loan, thus removing any claims Synorca had on a $11 million/month casino tax stream. Synorca, after Detroit defaulted on unrelated certificates of participation, placed a hold on that stream, which became the subject of a state-level lawsuit by Orr.

Steve Eggleston on July 18, 2013 at 7:08 PM

“We refused to let Detroit go bankrupt. And three years later, that bet is paying off in a big way.”

-Barack Obama, October 2012

That didn’t take long.

Meremortal on July 18, 2013 at 7:10 PM

But he said he saved it, yes? I’m confused… :/
http://www.youtube.com/watch?feature=player_embedded&v=V6Su5mjQSaE

Ozprey on July 18, 2013 at 7:10 PM

The unsuspecting US citizenry is likely unaware of yet is that once again the municipal workers’ pension plans (that face 90% losses) will be bailed-out via the Pension Benefits Guaranty Corporation (PBGC) – A US Government (ponzi) Agency.

albill on July 18, 2013 at 7:07 PM

But because Detroit’s pensions are far more generous than what the PBGC allows, it will only be a partial bailout.

Steve Eggleston on July 18, 2013 at 7:10 PM

If the black community hadn’t killed 27 million babies since 1973 maybe there would be more taxpayers to have helped Detroit.

The suicide of the Black community continues.

PappyD61 on July 18, 2013 at 7:10 PM

Hey who not have Obama just send them a Trillion Dollar Coin?

sharrukin on July 18, 2013 at 6:43 PM

They couldn’t make change.

Bmore on July 18, 2013 at 6:52 PM

Did I actually post that?

Hey who WHY not have Obama just send them a Trillion Dollar Coin?

I do wonder if we are going to see an attempted bailout of Detroit? I suspect that we will.

sharrukin on July 18, 2013 at 7:11 PM

“We refused to let Detroit go bankrupt. And three years later, that bet is paying off in a big way.”

-Barack Obama, October 2012

That didn’t take long.

Meremortal on July 18, 2013 at 7:10 PM

missed it by thaaaat much. ;)

Ozprey on July 18, 2013 at 7:11 PM

The city’s $11 billion in unsecured debt includes $6 billion in health and other retirement benefits and $3 billion in retiree pensions for its 20,000 city pensioners, who are slated to receive less than 10 percent of what they were promised.

Let’s hope they haircut these in an intelligent fashion, like cap all pensions at $30K a year or so, and see what that does to the funding level. Trash all medical and other pension benefits.

slickwillie2001 on July 18, 2013 at 7:14 PM

Luckily for them, places like Chicago, NYC, etc. have a lot more cultural capital to sustain them

Well, that means L.A. is doomed, as everyone knows that it is a “cultural wasteland’ – the NYT said so years ago.

Another Drew on July 18, 2013 at 7:15 PM

A number of factors — most notably steep population and tax base falls — have been blamed on Detroit’s tumble toward insolvency. Detroit lost a quarter-million residents between 2000 and 2010. A population that in the 1950s reached 1.8 million is struggling to stay above 700,000. Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.

Still not facing the question, -WHY?

slickwillie2001 on July 18, 2013 at 7:17 PM

“We refused to let Detroit go bankrupt. And three years later, that bet is paying off in a big way.”

-Barack Obama, October 2012

That didn’t take long.

Meremortal on July 18, 2013 at 7:10 PM

missed it by thaaaat much. ;)

Ozprey on July 18, 2013 at 7:11 PM

Yeah, Obama has said that about ObamaCare, Dodd Frank, Gay Marriage and Travon Martin…..

redguy on July 18, 2013 at 7:17 PM

Collectivist Utopia Achieved!
How long before Illinois, California, New York cross the finish line also?

djtnt on July 18, 2013 at 7:17 PM

A number of factors — most notably steep population and tax base falls — have been blamed on Detroit’s tumble toward insolvency. Detroit lost a quarter-million residents between 2000 and 2010. A population that in the 1950s reached 1.8 million is struggling to stay above 700,000. Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.

Still not facing the question, -WHY?

slickwillie2001 on July 18, 2013 at 7:17 PM

Because the welfare blacks took over and ruined the place, that’s why……
People with money will leave a shithole before they fix it…..

redguy on July 18, 2013 at 7:18 PM

LET IT BURN

http://www.reuters.com/article/2013/07/13/usa-detroit-arson-idUSL2N0EV1MU20130713

redguy on July 18, 2013 at 7:15 PM

The anthem of Detroit (those of you still at work may not want to turn it down)

Steve Eggleston on July 18, 2013 at 7:19 PM

I’d say that there will be riots.

But it’s Detroit. No sense being redundant…

JohnGalt23 on July 18, 2013 at 6:43 PM

Detroit: Where rioting means burning the same burnt out buildings you’ve been burning since 1967.

(Not kidding)

Resist We Much on July 18, 2013 at 7:22 PM

Whoops…

The anthem of Detroit (those of you still at work may not want to turn it down)

Steve Eggleston on July 18, 2013 at 7:23 PM

The Ruins of Detroit (PHOTO ESSAY)

Resist We Much on July 18, 2013 at 7:19 PM

A once thriving vibrant lively being reduced to skeletal remains…

http://www.youtube.com/watch?v=fQbudNKR0NE

Musical Death (A Dirge)…

Good Bye Detroit…

Scrumpy on July 18, 2013 at 7:27 PM

lively (city)… oops… :)

Scrumpy on July 18, 2013 at 7:27 PM

Soon followed by Philly, Chicago, NYC and SanFrancisco.

mixplix on July 18, 2013 at 7:30 PM

People with money will leave a shithole before they fix it…..

redguy on July 18, 2013 at 7:18 PM

Ah, they’re just racist…the black people that leave, too.

I could never understand why people would choose to live in these cesspools even decades ago. It’s a running joke in this country about how much New York City really sucks and muggings being commonplace…it’s expensive, dirty, crowded, over-taxed, crime-ridden, run by corrupt officials, the police are corrupt, people are rude, there’s drugs and gangs galore…but the denizens always talk about how great it is to live there. It’s an interesting form of self brainwashing mixed with denial.

What really gets me is that many that lived in NYC and New Jersey have in fact left because it sucks, but even then brag about how great “up north” is…huh?

And it’s not so much being a city. Any place that provides jobs or opportunity will always attract the scum of the earth and more people than there are jobs. Doesn’t matter if it’s Skagway during the gold rush or an established metropolis.

Dr. ZhivBlago on July 18, 2013 at 7:32 PM

From riches to rags.

Indeed.

From richest city in America to Bankruptcy in about a half century.

The rise and fall of Detroit should be a case study in which policies work (the rise of Detroit) and which policies fail (the fall of Detroit).

ITguy on July 18, 2013 at 7:32 PM

“We’re not Detroit!”

- The City of Cleveland

Myron Falwell on July 18, 2013 at 7:05 PM

No, I’d say for all practical purposes they are:

CLEVELAND, Ohio — The Cleveland-Elyria-Mentor metropolitan area lost more jobs in a year than any other metro in the country, the U.S. Labor Department reported Tuesday.

The Cleveland-Elyria-Mentor area lost 5,600 jobs between May 2012 and May 2013, placing total employment in the region at about 1.02 million.

Dr. ZhivBlago on July 18, 2013 at 7:14 PM

It was sort of in jest.

Besides, Kucinich may be a nutcase – and I’m being kind – but at least he fought on principle (preventing the sale of the city-owned power utility to Cleveland Electric Illuminating, the proceeds of which could have avoided the stigma of going into default). Albeit a really stupid, ill-begotten principle.

The severely depressed towns of Lorain and Elyria remind me more of Gary, Indiana than Detroit.

Cleveland could have a lot of potential (and the downtown isn’t that scary or depressing in spite of an abandoned and outmoded skyscraper of our own) but it is generally squandered by poor one-party leadership and the general trade union stranglehold.

Myron Falwell on July 18, 2013 at 7:34 PM

I suspect that we will.

sharrukin on July 18, 2013 at 7:11 PM

As do I. I hope they don’t, but…………..

Bmore on July 18, 2013 at 7:34 PM

‘Detroit is roaring back!’
– Barack Obama

Oops!
Resist We Much on July 18, 2013 at 6:20 PM

This is all very confrickting to me. :/

Ozprey on July 18, 2013 at 7:37 PM

Did I actually post that?

Hey who WHY not have Obama just send them a Trillion Dollar Coin?

I do wonder if we are going to see an attempted bailout of Detroit? I suspect that we will.

sharrukin on July 18, 2013 at 7:11 PM

I’m surprised not one person in Detroit thought of paying off their debt with cans of Faygo.

Myron Falwell on July 18, 2013 at 7:37 PM

“We refused to let Detroit go bankrupt. And three years later, that bet is paying off in a big way.”

-Barack Obama, October 2012

Arrrrg, that video! It’s like watching some bad science fiction movie from the future where society is so crazy and bizarre you have to suspend belief and common sense in order to get into the plot. But no, this is our life. Unnnnhhh.

SailorMark on July 18, 2013 at 7:39 PM

The result of liberal policies, writ large for all to see.

Should be yet another cautionary tale against going down that already demonstrably dangerous path, but… ‘we’ as a nation seem intent on doing it anyway.

Midas on July 18, 2013 at 7:40 PM

Scrumpy on July 18, 2013 at 7:27 PM

80 years ago, Detroit was the wealthiest city ON EARTH.

I just updated the photo essay and will be doing so again shortly.

Resist We Much on July 18, 2013 at 7:40 PM

Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.

Until those idiots in Detroit honestly admit why that is, they’ll never be solvent even if the bankruptcy goes through.

BacaDog on July 18, 2013 at 6:42 PM

Okay that hits the bullseye BD. You cant fix it until it changes at a very basic level. And it won’t change until the bottom totally falls out. A bailout would be the worst thing you could do. Same for California, I live here and realize that until it hits rock bottom, nothing will change.
So yes, expect riots.

JusDreamin on July 18, 2013 at 7:41 PM

How long until somebody blames it on the Republicans?

gator70 on July 18, 2013 at 6:20 PM

Undoubtedly, not long….even though Detroit hasn’t had a Republican mayor in 51 years.

Resist We Much on July 18, 2013 at 6:21 PM

http://www.salon.com/2013/07/12/white_people_killed_detroit/

equanimous on July 18, 2013 at 7:38 PM

Apparently not long at all. It was Whitey who done it!!

sharrukin on July 18, 2013 at 7:41 PM

If the black community hadn’t killed 27 million babies since 1973 maybe there would be more taxpayers to have helped Detroit.

The suicide of the Black community continues.

PappyD61 on July 18, 2013 at 7:10 PM

Not to put too fine a point on it, but it would’ve been some combination of additional taxpayers and additional tax consumers.

Would the scenario better? Or worse? Maybe they’d have had to file bankruptcy 10 years ago.

Midas on July 18, 2013 at 7:46 PM

The Libs/Leftists/Dems are eyeballing all that money in your private retirement funds.
There is a whole lot of redistributing to do. You know, paying your fair share.
Not only will you be considered greedy for fussing about it, but racist as well.

After all, how much money is enough for you in your retirement years?
It’s not fair that all those Detroiters are getting only a fraction of their pensions, when you wealthy bastards out there are living high on the hog, going to the local cafeteria once every week or two with your fellow blue hairs.

Mark my words.

justltl on July 18, 2013 at 7:47 PM

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