(Official) Detroit Will File For Bankruptcy As Early As 7/19/13 (Wayne: section 8, credit rating)

[313Weather]

Originally Posted by GarlicBreath

I heard on the radio that there are 47 or 48 city labor unions. Any truth?

100% true.

[Mezter]

Wasn't Montreal bankrupt after the Olympics? They turned out alright.

[tsx39]

Originally Posted by Duluth07

True, Tomalak; there are other cities that are in just as much of a disaster that we don't hear much about, or they aren't to the point Detroit is at - yet. But other cities smaller than Detroit (Duluth, Minnesota - for example, on Lake Superior has lost roughly half it's population since US Steel. Went from having 6 high schools in 1973 to 2 today...if it wasn't for the University of Minnesota - Duluth and Essentia Health I think the whole city would eventually be empty and washed over by the waves coming off the lake). Similar to Detroit, Duluth is too far away from another major city (Minneapolis/St Paul is 165 miles south) to attract anyone or any businesses. Most of the Great Lakes cities that had homegrown businesses have nothing now, as big box chains have come in, and mining, paper manufacturing, etc., have been moved overseas.

What's really sad in our cities today is that, while those who have 'fled' have moved on to bigger and better things, those who remain have absolutely no money to leave. Now rural and urban America are on the same page in that regard. It's easy to tell someone that there's lots of jobs if you're willing to move to (fill in the blank). It's another to go there, look around, find a job, find a place to live, move your stuff, etc...

Sorry, but your data on Duluth's population is incorrect. The city peaked in 1960 with just over 107,000 residents. It has decreased 20% since then. That drop so far stopped in 1990, as the population has been fairly stable since then.

A good comparison, at least for population flight, would be St. Louis, or Cleveland. Compare the number of people in the those cities 50-60 years ago to today.

[wizfourfam]

Originally Posted by 313Weather

I don't see it as holding anyone hostage. Ultimately, the workers were free to quit and work for other municipalities and companies (but of course, you couldn't beat those sweet benefits the city of Detroit offered).

But the fact of the matter is having public servants such as police officers reside in a neighborhood helps to deter crime, and they are also able to form more of a connection with the regular citizens in said neighborhoods (thus form a relationship of trust). Furthermore, the income they earn was more likely to be spent in said neighborhoods, and said businesses were able to hire workers in said neighborhoods. It's a positive feedback loop for the municipality that hired them.

Part of the reason Chicago hasn't declined nearly as much is because of its residency requirement for city employees.

Does YOUR job require YOU to live in the city where you work? Believe me, it is like being held hostage. DH did leave City employment after being laid off (yes City workers did get laid off - sweet huh). He went to another municipality for job stability and security - we moved due to the long commute. This move opened my eyes. We lived in a community other than where he was employed. We were free to just be a neighbor. Shopping was never an issue for us in the City since we had to shop in the 'burbs, that is where the stores were. The quality of any neighborhood is determined by the residents of said community, not their occupation. I feel you do a great disservice to all the hardworking people in Detroit with that generalization.

Bankruptcy is going to forever change Detroit. Once the wages and pensions are knocked down, who will want to work for the City in any high risk capacity? Put your life on the line every day as a PO or firefighter for rent a cop wages and a snazzy 401K? Think again.

[animatedmartian]

Originally Posted by flyonpa

News headline Monday, Low Level court ruling overturned by appeals court.

Possibly. At most, it'll have to be taken to federal court where pensions aren't protected.

However, if the appeal judge argues that bankruptcy nullifies any contractual obligations, it will set the precedent for other Michigan cities that are also precariously close to insolvency. Though I can't really say that too many Michigan cities are on the verge of bankruptcy at least not off the top of my head.

[Captain Obvious]

Originally Posted by animatedmartian

Detroit denied bankruptcy.

Detroit Bankruptcy Filing Unconstitutional, Must Be Withdrawn, Judge Orders (UPDATE)

I guess she never heard of the Supremacy Clause, then again she got her JD at Cooley.

[animatedmartian]

Rick Synder is reportedly going to appear on "Meet the Press" and "Face the Nation" on Sunday. Kevin Orr is going to be on "Fox News Sunday".

[Marsha33]

Originally Posted by City Guy997S

Detroit is the 4th city to declare bankruptcy in the last 2 years. As revenue falls and costs rise there will be more. Stigma is gone, more cities will do it in the future.

Debt market will get spooked and not refinance cities out of their debt so it will cause a rise due to lack of bond financing. COUNTRIES are going broke (Greece, Portugal, Spain) so cities will certainly do it.

I agree. If Detroit is able to go through bankruptcy, this could start a trend. What about other cities such as LA that have struggled through the years? Will bonds investors panic? What about the police officers, fire fighters and other civil workers who may get pension cuts and lose other benefits? What about this precedent of the governor appointing an emergency manager to run this city--pushing democracy aside? This could be very disastrous.

[fmax]

The math never did add up. Since Detroit's population is about 50% illiterate, including Detroit Public Schools former school board president, Otis Mathis, the bankruptcy comes as a great surprise.

Someone is going to get Hart Plaza, Belle Isle, etc for a song.

[jonnynonos]

Originally Posted by animatedmartian

Detroit denied bankruptcy.

Detroit Bankruptcy Filing Unconstitutional, Must Be Withdrawn, Judge Orders (UPDATE)

I believe she is wrong. The feds aren't going to do anything. If they do they have to help out every failing municipality in he country, and it sets a horrible precedent. Going forward every city refuse to make the tough decisions knowing the feds are going to save them eventually.