Michigan judge halts Detroit bankruptcy because it dishonors Obama

posted at 5:11 pm on July 19, 2013 by Allahpundit

Angela Corey should have tried this argument with Judge Nelson. 50/50 shot, no?

Alternate headline: “Government in Detroit somehow worse than thought.”

Aquilina, who granted the restraining order, clearly was irked.

Prior to her ruling on Friday, she criticized the Snyder administration and Attorney General’s Office for what appeared to be hasty action to outflank pension board attorneys.

“It’s cheating, sir, and it’s cheating good people who work,” the judge told assistant Attorney General Brian Devlin. “It’s also not honoring the (United States) president, who took (Detroit’s auto companies) out of bankruptcy.”

Aquilina said she would make sure President Obama got a copy of her order.

“I know he’s watching this,” she said, predicting the president ultimately will have to take action to make sure existing pension commitments are honored.

“I know he’s watching this.” She’s essentially threatening to tattle on the governor by faxing a copy of her order to Our National Father, whose dignity is on the line as the fate of America’s most notorious experiment in pure progressive government is decided. They should be grateful she didn’t hold them in contempt under the Dishonoring Obama clause of the Constitution.

Two things. One: The left has spent much of the day grumbling on Twitter that it’s not fair to make fun of Obama for saying repeatedly last year that he prevented Detroit from going bankrupt when what he meant by “Detroit” was the auto industry, not the municipal government. Aquilina doesn’t seem to find that distinction important. Obama held himself out as the city’s economic savior; to allow it to declare bankruptcy now would make a liar of him, and we can’t have that. Or maybe … she doesn’t grasp the distinction at all?

She also ordered that a copy of her declaratory judgment be sent to President Barack Obama, saying he “bailed out Detroit” and may want to look into the pension issue.

That’s from the Detroit Free Press, which helpfully notes that she “has a Democratic background.” Two: The legal basis for the decision is that the Michigan Constitution doesn’t allow the state to reduce public-employee pensions (of course), even though public-employee pensions are what’s driving the bankruptcy. Some bankruptcy experts disagree, but if that ruling stands on appeal, presumably the only solution is a bailout. You don’t think Our Father would go for that, do you? How about congressional Republicans?

Go look at the graphic Veronique De Rugy posted at the Corner.


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She’s an elected Judge.

Del Dolemonte on July 19, 2013 at 5:14 PM

This entire government and its courts are pure BS.

rplat on July 19, 2013 at 5:14 PM

Aquilina said she would make sure President Obama got a copy of her order.

Utterly creepy. The fascist state progresses.

This will be decided by the Michigan Supreme Court on the constitutional issue.

rbj on July 19, 2013 at 5:15 PM

What do you call a lawyer who graduated at the bottom of their law school class?

“Your Honor”

myiq2xu on July 19, 2013 at 5:15 PM

Obama will bail them out. He has to. The validity of their whole political philosophy is at stake here.

hisfrogness on July 19, 2013 at 5:15 PM

#NoJustice

Seven Percent Solution on July 19, 2013 at 5:15 PM

Another low information voter.

patch on July 19, 2013 at 5:16 PM

This will be decided by the Michigan Supreme Court on the constitutional issue.

It will be decided by a federal court. The legal term is “preemption”.

myiq2xu on July 19, 2013 at 5:16 PM

Equality before the law – unless you’re union then you are more equal.

gwelf on July 19, 2013 at 5:17 PM

She’d be the first to wash Obama’s Feet.

He is her savior, her king.

portlandon on July 19, 2013 at 5:17 PM

How about a hat tip, AP?

Bankruptcy? What bankruptcy?

DetNews: Ingham County judge rules Detroit bankruptcy be withdrawn

Lansing — Ruling that the governor and Detroit’s emergency manager violated the state constitution, an Ingham County Circuit judge ordered Friday that Detroit’s federal bankruptcy filing be withdrawn.

“It’s absolutely needed,” said Judge Rosemary Aquilina, observing she hopes Gov. Rick Snyder “reads certain sections of the (Michigan) constitution and reconsiders his actions.”

Aquilina’s ruling should quickly move state-level legal skirmishing over the Detroit’s Chapter 9 bankruptcy strategy into the Michigan Court of Appeals.

Suits filed by lawyers representing unions and the city’s employees pension plans have the potential to slow down federal bankruptcy proceedings and could end up in federal court.

Ward Cleaver on July 19, 2013 at 2:29 PM

Ward Cleaver on July 19, 2013 at 5:19 PM

Looks like Thumbalina will be appointed the 10th judge on the SCOTUS pretty soon.

burrata on July 19, 2013 at 5:19 PM

I like Ace’s comments on the constitutionality of protecting the unions:

But that itself would be unconstitutional — that would give Detroit voters the right to vote themselves the wealth of Michigan taxpayers.

Which seems to be precisely what the judge is saying — Detroit spent money it didn’t have, and spent itself into the grave, and now innocent taxpayers are required to make good on its contracts, despite not being parties to those contracts and despite not being under the sovereign political authority of Detroit.

http://minx.cc/?post=341790

If you live in Michigan then you are a serf to the unions.

gwelf on July 19, 2013 at 5:20 PM

the depths people will sink to tow the union/democrat line….

powerpickle on July 19, 2013 at 5:20 PM

“She’s essentially threatening to tattle on the governor by faxing a copy of her order to Our National Father…”

The only thing missing is the uniform…

Seven Percent Solution on July 19, 2013 at 5:21 PM

So Aquilina must have attended the same Constitutional law classes that Obama did.

IOW, none.

Bitter Clinger on July 19, 2013 at 5:21 PM

saying he “bailed out Detroit” and may want to look into the pension issue.

Yaaaaayyy…more obama-monnay, from his stash …woooohooo…

burrata on July 19, 2013 at 5:21 PM

Detroit? Let it burn.

Ward Cleaver on July 19, 2013 at 5:21 PM

Another low information voter judge.

patch on July 19, 2013 at 5:16 PM

HumpBot Salvation on July 19, 2013 at 5:22 PM

Nice to see the separation of powers at work.
////////////////////////////////////

Bitter Clinger on July 19, 2013 at 5:23 PM

She’d be the first to wash Obama’s Feet.

He is her savior, her king.

portlandon on July 19, 2013 at 5:17 PM

That really says it all.

The Left is engaged in a form of cultism with Obama as their current ‘ruler’ — all the false “community” this and that that doesn’t actually exist but about which the Left needs in order to push ongoing Socialism: this “dadada community,” that “dadada community” here, there, it has created, by the Left, for the Left, a false personna of some sort of village in which everyone has a hut, has a pot of whatever (EBT cards, food stamps), everyone surrounding the Chief with his big this and that, serviced by all “the community of dadada…”

Hillary is another ready-made chief in their phony village. All the government is now just another hut in their sinister closed society of huts.

Lourdes on July 19, 2013 at 5:24 PM

They should be grateful she didn’t hold them in contempt under the Dishonoring Obama clause of the Constitution.

That’s a great line!

JustTruth101 on July 19, 2013 at 5:25 PM

Obama unilaterally closed auto dealerships, regardless of the fact they are privately owned. He unilaterally cheated the secured creditors and gave the companies to the unions. He unilaterally cheated the white collar workers, depriving them of their pensions, but protecting the union workers. His administration deprived all of these stakeholders of their property before ushering the companies into bankruptcy court.

Forgive me if I lack sympathy for Detroit’s union workers.

obladioblada on July 19, 2013 at 5:25 PM

Ummm, as far as I know (and I practice law in related areas including restructurings) a state judge has no power to stop a filing in federal bankruptcy court.

This is one of the silliest things I’ve seen in a court in a long time, even including the prosecution the the Obama’s son Trayvon case.

CatoRenasci on July 19, 2013 at 5:27 PM

No doubt that the trial will be closely followed…

… and if the bankruptcy is upheld, it will be because of racism.

No doubt…

Seven Percent Solution on July 19, 2013 at 5:27 PM

I guess I’m not surprised.
The failure of a bankrupt governing philosophy moves forward slowly, I suppose.

22044 on July 19, 2013 at 5:27 PM

And, Romney was right about “Detroit” — they should be left (and should have been) to their own results.

If they can’t or won’t ever face the music they’ve made, they’ll simply go on to repeat the same failed but now firmly institutionalized failures.

On and on and on and, oh, look, billions of more dollars, great, on and on and, oh, look, horrible conditions, we need another two billion, oh, thanks, on and on and on and crumbling conditions, failures…

The Left never learns, they just bail each other out while the failure tide gets higher. This explains the Left’s dedication to and need for a celebrity culture: reality is so bad, it can’t be faced, all the pretty, rich people make it so much easier to not look at it…

Lourdes on July 19, 2013 at 5:27 PM

There are two issues here:

1. Are Detroit’s pension obligations dischargeable in bankruptcy?

Answer: Maybe, but the decision will be made by a federal BK court (or higher)

2. Does a state judge have the power to order a municipality to withdraw a bankruptcy petition?

Answer: No. Federal courts preempt state law.

myiq2xu on July 19, 2013 at 5:28 PM

Obama will bail them out. He has to. The validity of their whole political philosophy is at stake here.

hisfrogness on July 19, 2013 at 5:15 PM

It’s a potential political disaster for him though. This isn’t bailing out the auto companies. You can sucker enough Americans(and Congressional Republicans for that matter) into supporting that since it was sold as saving an industry, and jobs, and a proud institution in this country.

What is the pitch for bailing out Detroit? A bunch of corrupt incompetent Democrats and union thugs(but I repeat myself) spent themselves into bankruptcy and now honest, hard-working taxpayers get stuck with the bill? Good luck selling that to the country.

Doughboy on July 19, 2013 at 5:28 PM

Michigan judge halts Detroit bankruptcy because it dishonors Obama

I actually thought this was Allahpundit snark…and then I read the article. You weren’t kidding. How do you parody these sorts of people when their own behavior comes right off a SNL skit. This is North Korea style nuts.

sharrukin on July 19, 2013 at 5:29 PM

The legal basis for the decision is that the Michigan Constitution doesn’t allow the state to reduce public-employee pensions (of course), even though public-employee pensions are what’s driving the bankruptcy.

So the state is not allowed to reduce the freeloaders’ pensions,
but what about the Feds ? Can the Feds do that ?
If yes , then go for it.
If no, thne let the state find the money to pay off it’s freeloaders till the day they die .

burrata on July 19, 2013 at 5:30 PM

Ummm, as far as I know (and I practice law in related areas including restructurings) a state judge has no power to stop a filing in federal bankruptcy court.

This is one of the silliest things I’ve seen in a court in a long time, even including the prosecution the the Obama’s son Trayvon case.

CatoRenasci on July 19, 2013 at 5:27 PM

When has Obama or any other Democrat/Liberal ever paid much attention to what is the right thing to do and what isn’t as to procedures, the laws, purviews…

It’s OBAMA in this woman’s/judge’s mind. That’s all she’s thinking about: not ‘offending’ her “ruler”. That’s the main thing, the only thing, that’s the thing, that Plantation/Village perspective.

Lourdes on July 19, 2013 at 5:31 PM

All Michigan cities and towns need to guarentee pensions of one billion dollars each.

Sometimes you have to hit the stupid with a wall of reality instead of just one brick.

This woman won’t understand corrupt politicians owned by unions made promises they couldn’t keep.

GardenGnome on July 19, 2013 at 5:31 PM

Margaret Thatcher was right; they finally ran out of other people’s money. Now, this idiotic judge is saying, “Find some other other-people; someone has to have money that the corrupt city government can steal.”

RoadRunner on July 19, 2013 at 5:32 PM

This is North Korea style nuts.

sharrukin on July 19, 2013 at 5:29 PM

Yes. Yes, it is.

Lourdes on July 19, 2013 at 5:32 PM

Alternate headline: “Government in Detroit somehow worse than thought.”
=======

Le Ahem,gonna be a hot time,in the MotorCity Tonight!
(sarc)

canopfor on July 19, 2013 at 5:32 PM

Results for #Detroit
********************

https://twitter.com/search?q=%23Detroit&src=hash

canopfor on July 19, 2013 at 5:34 PM

If she really cared about cheating good people who work, she wouldn’t grovel before Obama and his ilk.

Christien on July 19, 2013 at 5:34 PM

Well, if they try to dump this all on Michigan taxpayers, I predict even more migration to other states. Really a shame. It is a great state. It will be interesting to see how the Dearborn residents react.

a capella on July 19, 2013 at 5:35 PM

Detroit? Let it burn.

Ward Cleaver on July 19, 2013 at 5:21 PM

There’s not much left that ain’t already burned.

Kafir on July 19, 2013 at 5:35 PM

MeanWhile,…..Oops!

Reuters Top News ‏@Reuters 12m

U.S. regulators charge city of Miami with fraud http://reut.rs/15uaIQk
=========

http://preview.reuters.com/2013/7/19/us-regulators-charge-miami-ex-budget-director-with

canopfor on July 19, 2013 at 5:36 PM

Obama unilaterally closed auto dealerships, regardless of the fact they are privately owned. He unilaterally cheated the secured creditors and gave the companies to the unions. He unilaterally cheated the white collar workers, depriving them of their pensions, but protecting the union workers. His administration deprived all of these stakeholders of their property before ushering the companies into bankruptcy court.

Forgive me if I lack sympathy for Detroit’s union workers.

obladioblada on July 19, 2013 at 5:25 PM

DITTO.

Mr. Ruler was an egomaniac pretending to be Presidential. Acting “the part”. Mr. Ruler waving his egomaniacal wand around, “commanding” illigitimacy because of his idea of “equal share”. Which means, in Mr. Ruler’s vernacular, favoritism for those who adulate him, ripoff those who don’t.

Mr. Ruler.

Obama reminds me more and more every day of a tribal chief wrapped in reeds with a bone through his nose holding an umbrella that he considers a staff, ordering no one to read because it’d make them “smarter than (he) is”…

Oh, but they’ll get an extra bone in their soup if they smile.

Lourdes on July 19, 2013 at 5:36 PM

Ummm, as far as I know (and I practice law in related areas including restructurings) a state judge has no power to stop a filing in federal bankruptcy court.

This is one of the silliest things I’ve seen in a court in a long time, even including the prosecution the the Obama’s son Trayvon case.

CatoRenasci on July 19, 2013 at 5:27 PM

As a lowly paralegal, I was going to say this very thing but I thought I’d be challenged by the “you’re not a lawyer” crowd. Thanks for validating my view of the law. I would add that, quaint as it is, the fed constitution is the exclusive province of bankruptcy. Which means there’s no such thing as state bankruptcy courts, which means there’s no general jurisdiction for state judges in this area.

Michigan voters have a mission if this fool runs again.

platypus on July 19, 2013 at 5:36 PM

If this crazy decision is upheld, then we’ve just ushered in Socialism, straight up.

“From each according to his ability, to each according to his need ”

-Karl Marx

I’m nervous.

WisRich on July 19, 2013 at 5:37 PM

I actually thought this was Allahpundit snark…and then I read the article. You weren’t kidding. How do you parody these sorts of people when their own behavior comes right off a SNL skit. This is North Korea style nuts.

sharrukin on July 19, 2013 at 5:29 PM

Get a load of what she looks like – there’s a picture of her in the link I posted earlier this afternoon.

Ingham County judge rules Detroit bankruptcy be withdrawn; Schuette appeals

Ward Cleaver on July 19, 2013 at 5:37 PM

Detroit? Let it burn.

Ward Cleaver on July 19, 2013 at 5:21 PM


It already has …

http://predicthistunpredictpast.blogspot.com/2013/07/the-ruins-of-detroit.html

… and thanks to the SCOAMF, Democrats, Bernanke, LSM and the GOPe – in the not too distant future large parts of America will look exactly like those photos of Detroit.

PolAgnostic on July 19, 2013 at 5:38 PM

The legal basis for the decision is that the Michigan Constitution doesn’t allow the state to reduce public-employee pensions (of course), even though public-employee pensions are what’s driving the bankruptcy.

So, the Michigan State Constitution is a suicide pact?

Socratease on July 19, 2013 at 5:38 PM

Remember this character?

“Dis chief say, no child can learn to read…”

http://farm4.staticflickr.com/3024/3025522663_d969affdd3_z.jpg?zz=1

Lourdes on July 19, 2013 at 5:39 PM

Didn’t Obama and his Admin pass on bailing out Detroit???

Will a magic Judge educate our President and his Admin?

Odie1941 on July 19, 2013 at 5:40 PM

And just how is this different from Soviet Union communists worshiping Stalin? Even to this day. Not that worship of Putin is that much different.

And Reagan claimed we have defeated Soviet Union?

riddick on July 19, 2013 at 5:40 PM

Get a load of what she looks like – there’s a picture of her in the link I posted earlier this afternoon.

Ingham County judge rules Detroit bankruptcy be withdrawn; Schuette appeals

Ward Cleaver on July 19, 2013 at 5:37 PM

Demi Moore became a judge?

WisRich on July 19, 2013 at 5:40 PM

Get a load of what she looks like – there’s a picture of her in the link I posted earlier this afternoon.

Ingham County judge rules Detroit bankruptcy be withdrawn; Schuette appeals

Ward Cleaver on July 19, 2013 at 5:37 PM

I can see crazy from my house.

I have little doubt Detroit will be bailed out because the politicians on both sides want the dance to continue for as long as possible, but if this ruling stands it is a very bad sign.

sharrukin on July 19, 2013 at 5:40 PM

More evidence that liberalism, and pagan state worship, is truly a religion. Thou shall Honor thy National Father so that thy shall live long in the Land.

ted c on July 19, 2013 at 5:41 PM

If you live in Michigan then you are a serf to the unions.

gwelf on July 19, 2013 at 5:20 PM

That’s what the law reads, and it should be upheld. Let the socialists show their real face, and quit letting people escape just by moving away. It’s time to bring this to a head and that won’t happen till people are forced to decide what they believe.

Yes the state constitution was written to allow Detroit to drain the entire state of wealth, so are we going to be like Obama and choose which laws we enforce? Enforce the law and make everyone in Michigan pay attention. Make them turn off ESPN and wake up. Make them change the constitution.

DFCtomm on July 19, 2013 at 5:41 PM

Just when you think you’ve seen it all.

gophergirl on July 19, 2013 at 5:41 PM

I don’t believe the unions have the standing to protest against an issue between the state and the federal government… Pursuant to the Supreme Court ruling last week…

Skywise on July 19, 2013 at 5:41 PM

“It’s cheating, sir, and it’s cheating good people who work,” the judge told assistant Attorney General Brian Devlin. “It’s also not honoring the (United States) president, who took (Detroit’s auto companies) out of bankruptcy.”

Jail this friggin idiot. Seriously. ANy judge who could actually make a statement such as this – and in court, even – needs to be jailed. Tarred and feathered on a weekly basis while in jail would help, too.

This judge is truly representative of the dregs of society and he has no business running free in any civilized nation. Unreal.

ThePrimordialOrderedPair on July 19, 2013 at 5:42 PM

As if the poverty and race pimp in chief had any honor…

Schadenfreude on July 19, 2013 at 5:42 PM

Today, the tiniest man in America huckstered race instead of speaking about Detroit.

He hates you, fools.

Schadenfreude on July 19, 2013 at 5:43 PM

Judge Aquilina just made Obama’s short list for Supreme Court nominees.

Captain Kirock on July 19, 2013 at 5:44 PM

Bankruptcy is a Federal statue. Her bogus ruling won’t last the weekend. I’m sure that there’s a law somewhere in Michigan, or the U.S. code, that address dishonoring Obama. This is progressive insanity at its worse.

cajunpatriot on July 19, 2013 at 5:44 PM

Hey, leave Obama alone…to him, this is bailing Detroit out.

If he can get Detroit to not pay debts, not own up to their obligations, stick it to the vendors who have supported Detroit, why not? That’s the way he thinks, he has bailed them out of obligations.

Basically that is what the “bailout” of the auto industry was, he got other people to pay for his friends debts.

right2bright on July 19, 2013 at 5:44 PM

I can see crazy from my house.

I have little doubt Detroit will be bailed out because the politicians on both sides want the dance to continue for as long as possible, but if this ruling stands it is a very bad sign.

sharrukin on July 19, 2013 at 5:40 PM

I’m still doubtful Obama goes near this. Aside from the political fallout, it’s setting a very dangerous precedent. If Detroit gets a bailout, why not the towns in California that have already declared bankruptcy? Why not California itself? And then Illinois? Where does it end?

Doughboy on July 19, 2013 at 5:45 PM

I don’t believe the unions have the standing to protest against an issue between the state and the federal government… Pursuant to the Supreme Court ruling last week…

Skywise on July 19, 2013 at 5:41 PM

As long as a dem is president, you can believe anything you want, but the unions will have their way…and since when did this president care about court rulings if not in his favor?

right2bright on July 19, 2013 at 5:46 PM

Detroit won`t go quietly.

ThePrez on July 19, 2013 at 5:46 PM

libs want the federal government to move in, declare it a “Federal District” and then reap all the benefits that that would create, if you could call it that.

ted c on July 19, 2013 at 5:47 PM

All I know is this, if ever I am before a judge, I hope they think as highly of me…

right2bright on July 19, 2013 at 5:48 PM

Obama will make blacks vote Republican

Schadenfreude on July 19, 2013 at 5:48 PM

Imagine her disappointment when her disease wasn’t cured after she touched the hem of Chicago Jesus’s robe.

Christien on July 19, 2013 at 5:49 PM

To be fair, this justice went to the Chris Matthews School of Law.

gwelf on July 19, 2013 at 5:51 PM

I’m still doubtful Obama goes near this.

Not directly, but his proxies on both sides will make the attempt.

Aside from the political fallout, it’s setting a very dangerous precedent. If Detroit gets a bailout, why not the towns in California that have already declared bankruptcy? Why not California itself? And then Illinois? Where does it end?

Doughboy on July 19, 2013 at 5:45 PM

If Detroit doesn’t get a bailout what happens to California, and all those other municipalities who are also on the brink? They are afraid of a cascade effect which is why they poured massive amounts of cash into the banks. They haven’t shown any willingness to face the consequences of overspending so far, and I wouldn’t bet on it any time soon.

sharrukin on July 19, 2013 at 5:51 PM

In the spirit of Papa Doc….

Obama, leader of the new Ameriki, President for Life!

(rinse and repeat)

Another Drew on July 19, 2013 at 5:52 PM

The legal basis for the decision is that the Michigan Constitution doesn’t allow the state to reduce public-employee pensions (of course),

A bankruptcy filing by itself doesn’t reduce any pensions. That would be up to a federal court. She’s short circuiting the process and effectively saying Chapter 9 doesn’t apply in Michigan. It’s a preposterous ruling that will be shot down, and the judge is just delaying the inevitable.

RadClown on July 19, 2013 at 5:52 PM

Detroit… Motor City… symbol of American industriousness and working class/middle class work ethic…becomes progressive experiment… devolves to epic tragedy… finally, reaching rock bottom…. has become old style burlesque farce.

thatsafactjack on July 19, 2013 at 5:53 PM

That isn’t a Bible on the Judge’s desk.

It is the Democratic National Committee’s “Dogma for the Faithful”

An excerpt from it:

Our Obama,

Who art in DC, hallowed be your name.

Your socialism come, your will be done,

Right here, as it is in Europe.

Give us this day our daily EBT,

and forgive us our loans,

As we really can’t stand the bond holders.

An lead us not in contemplation,

But deliver us some evil weed.

PolAgnostic on July 19, 2013 at 5:53 PM

You can’t make this stuff up, really. Does the judge have a poster of Duh One in her locker with smooch marks all over it? The Tiger Beat President.

Philly on July 19, 2013 at 5:55 PM

Seems to me, the petitioner in the Bankruptcy case in federal bankruptcy court appeals to the intermediate state appeals court to which appeals from this crackpot’s court must be made. Presumably, that court–likely a panel of three judges–will dismiss the lower court’s ruling for lack of subject matter jurisdiction.

Nice stunt, lady. All you did was waste tax money.

BuckeyeSam on July 19, 2013 at 5:56 PM

I can see crazy from my house.

I have little doubt Detroit will be bailed out because the politicians on both sides want the dance to continue for as long as possible, but if this ruling stands it is a very bad sign.

sharrukin on July 19, 2013 at 5:40 PM

They can dump all the money they want on Detroit, but it will always be on life support, as long as no meaningful changes are made. They’re just prolonging the inevitable.

Ward Cleaver on July 19, 2013 at 5:56 PM

KISS can only add the appropos music to this thread…..

https://www.youtube.com/watch?v=2LdiaLMLM-Q

ted c on July 19, 2013 at 5:56 PM

1. Obama has no honor to defend.
2. The auto companies still went into bankruptcy even after the bailout.
3. By sending a copy to Obama, she is fishing for an appointment to a Federal court.

DAT60A3 on July 19, 2013 at 5:57 PM

It’ll be interesting to see what state constitution mincemeat tastes like, as cooked up by a federal bankruptcy judge.

MTF on July 19, 2013 at 5:58 PM

presumably the only solution is a bailout

Well then get ready to bail out San Bernardino, Oakland, Los Angeles………….

Deee-troit doesn’t have enough money to pay retirees, current workers, and current city suppliers.

Guess the workers will work ‘for free’ and suppliers will provide services ‘for free’.

I’m sure Her Honor can figure how that will work out. Oh, she’s a “Democratic supporter”…………guess not.

Only one solution: RAISE the minimum wage / RAISE taxes!

GarandFan on July 19, 2013 at 5:58 PM

i remember the good old days when we laughed at the dead ended corruption in Greece, and how such a corrupt and crooked system will always have to be bailed out by the EU

and how we used to think that the US was exceptional in (generally) having relatively mild political and judicial corruption…

r keller on July 19, 2013 at 5:58 PM

Tweets

Mediaite ‏@Mediaite 7m

Detroit Judge Halts Bankruptcy Filing

That Is ‘Not Honoring’ Obama: ‘I Know He’s Watching This’

http://bit.ly/114Xudf
=========================

https://twitter.com/mediaite

canopfor on July 19, 2013 at 5:59 PM

Wall it off. Kill anyone who tries to exit.

ESCAPE FROM DETROIT

RedNewEnglander on July 19, 2013 at 5:59 PM

It already has …

http://predicthistunpredictpast.blogspot.com/2013/07/the-ruins-of-detroit.html

… and thanks to the SCOAMF, Democrats, Bernanke, LSM and the GOPe – in the not too distant future large parts of America will look exactly like those photos of Detroit.

PolAgnostic on July 19, 2013 at 5:38 PM

I’ve looked at plenty of pictures of Detroit over the last few years, and what’s happened to it. In a way it makes me sad, because it used to be a great city with lots of cool old buildings, from the office buildings, to the churches, to the older homes. About the only cool place left that hasn’t been destroyed is the Fox Theatre downtown.

Ward Cleaver on July 19, 2013 at 6:00 PM

They can dump all the money they want on Detroit, but it will always be on life support, as long as no meaningful changes are made. They’re just prolonging the inevitable.

Ward Cleaver on July 19, 2013 at 5:56 PM

Thats been true for everyone since 2008. They still haven’t changed a thing.

sharrukin on July 19, 2013 at 6:00 PM

If Detroit doesn’t get a bailout what happens to California, and all those other municipalities who are also on the brink? They are afraid of a cascade effect which is why they poured massive amounts of cash into the banks. They haven’t shown any willingness to face the consequences of overspending so far, and I wouldn’t bet on it any time soon.

sharrukin on July 19, 2013 at 5:51 PM

.
If I recall correctly, the estimates of unfunded pension liabilities for Federal, state and local workers is somewhere in the range of …

$ 50 – 75 trillion dollars over the next 20+ years

That doesn’t include ANYTHING else the politicians have promised – no Social Security, Medicare/Medicade, Obamacare, or just paying the interest on the debt when Bernanke’s Ponzi scheme blows up – just the unfunded pension liabilities.

There is a reason why I and others have said:

Let. It. Burn.

PolAgnostic on July 19, 2013 at 6:00 PM

Good grief! Just when you think everything is going good! ////// sarc sarc

mobydutch on July 19, 2013 at 6:01 PM

The Associated Press ‏@AP 1m

After automakers made comebacks, why can’t Detroit do the same? http://apne.ws/17qZKwj -CC
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https://twitter.com/AP

canopfor on July 19, 2013 at 6:02 PM

This Judge has no jurisdiction. It is now a Federal matter.

pat on July 19, 2013 at 6:02 PM

Well then get ready to bail out San Bernardino, Oakland, Los Angeles………….

Deee-troit doesn’t have enough money to pay retirees, current workers, and current city suppliers.

Guess the workers will work ‘for free’ and suppliers will provide services ‘for free’.

I’m sure Her Honor can figure how that will work out. Oh, she’s a “Democratic supporter”…………guess not.

Only one solution: RAISE the minimum wage / RAISE taxes!

GarandFan on July 19, 2013 at 5:58 PM

From the end of the article at the link I posted:

Southfield attorney John Canzano, representing several pension plan members, said bankruptcies of cities such as Stockton, Calif., have been handled in a way that didn’t compromise pensions.

I’ll bet Stockton goes bankrupt again, thanks to their pension liabilities.

Ward Cleaver on July 19, 2013 at 6:03 PM

If Detroit doesn’t get a bailout what happens to California, and all those other municipalities who are also on the brink? They are afraid of a cascade effect which is why they poured massive amounts of cash into the banks. They haven’t shown any willingness to face the consequences of overspending so far, and I wouldn’t bet on it any time soon.

sharrukin on July 19, 2013 at 5:51 PM

You know the difference between a state and s municipality, right? California (and states in general) cannot file for bankruptcy because states are not covered by the bankruptcy law…no U.S. state has ever declared bankruptcy. What happens if a state runs out of revenue is that rather than having a court restructure its finances as in a bankruptcy filing, a state would have to reorganize its spending and debt on its own.

jimver on July 19, 2013 at 6:05 PM

Detroit going into bankruptcy to balance it’s finances would be racist.

burrata on July 19, 2013 at 6:05 PM

That doesn’t include ANYTHING else the politicians have promised – no Social Security, Medicare/Medicade, Obamacare, or just paying the interest on the debt when Bernanke’s Ponzi scheme blows up – just the unfunded pension liabilities.

I agree that it cannot be sustained, but the Democrats and the Republicans have been funneling money into the money pit and show no signs of stopping.

There is a reason why I and others have said:

Let. It. Burn.

PolAgnostic on July 19, 2013 at 6:00 PM

No one is serious about cutting back on anything, so that is obviously the only solution left.

They will try to bail out Detroit. They will keep spending until every possible source of cash and credit is exhausted and there is nothing left to steal…and then they will wall themselves up in gated communities, or leave for greener pastures.

sharrukin on July 19, 2013 at 6:06 PM

but…she means well./

ted c on July 19, 2013 at 6:07 PM

What happens if a state runs out of revenue is that rather than having a court restructure its finances as in a bankruptcy filing, a state would have to reorganize its spending and debt on its own.

jimver on July 19, 2013 at 6:05 PM

The effect on potential lenders is the point, not the particular means by which a state or municipality go bust. They are afraid that if a place like Detroit goes down the creditors will cease lending which will cause other entities to collapse because many of them are running on credit alone.

sharrukin on July 19, 2013 at 6:10 PM

What is the pitch for bailing out Detroit? A bunch of corrupt incompetent Democrats and union thugs(but I repeat myself) spent themselves into bankruptcy and now honest, hard-working taxpayers get stuck with the bill? Good luck selling that to the country.

Doughboy on July 19, 2013 at 5:28 PM

I’ll try my best:

“Hard working Americans” paid into the system and now the system is failing them. If we let Detroit go bankrupt then we’re saying that freedom and democracy just isn’t worth it.

Perhaps the NSA will pass this on.

hisfrogness on July 19, 2013 at 6:10 PM

A bankruptcy judge has been assigned now:

Veteran Detroit jurist Steven Rhodes assigned to historic bankruptcy case

Detroit — The city’s historic bankruptcy case was assigned Friday to U.S. Bankruptcy Judge Steven Rhodes, a veteran Detroit jurist who was appointed to the bench in 1985 and plays rhythm guitar in a rock-and-roll cover band.

The assignment is a coup for a bankruptcy bench that lost out on hearing the 2009 bankruptcy cases of General Motors Corp. and Chrysler LLC. The historic filings were heard by a federal judge in Manhattan.

“I don’t know if this would soften the sting but if this case were not to remain in Detroit, that would be a tremendous black eye for the bench,” said Southfield bankruptcy lawyer Stuart Gold. “The practitioners before this bench all have all the confidence in the world that any of the judges here can handle a case of this magnitude.”

If he was appointed to the Federal bench in 1985, then I guess that makes him a Reagan appointee. I can’t wait to hear the howls from the Democrats in Detroit.

Ward Cleaver on July 19, 2013 at 6:11 PM

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