(Official) Detroit Will File For Bankruptcy As Early As 7/19/13 (Rochester: refinance, credit card)

[citylove101]

Originally Posted by City Guy997S

There are plenty of US cities that will be forced to do this as well. The rising costs of pensions/healthcare and dwindling cashflow (city taxes/property taxes) are giving them less to work with. You can't pay a guy a great wage for 20 years then pay his pension (based on that 20 year career/inflated wages) for the next 30 years.....it is bad math and will never work out.

No they're not plenty of cities ready to declare bankruptcy. Not even close. Its an extremely, extremely rare occurence, which is why it's all over the papers and TV. Cities have been mismanaged, corrupt, crime-filled, and poor for decades all over the country and hardly any of them declare bankruptcy.

Detroit is unique in that it had only one major employer (the car industry) which shrank and then collpased, and the size of its middle-class exodus over the past 60 years which cut its population by more than half.

Trying to maintain the same civic services and infrastructure you had when you had 1.8 million people now that you have 700,000 or so -- with many of them too poor to contribute to the local economy -- is impossible. Detroit, for all the reasons people commonly cite, could never made the adjustment. Other cities did.

To repeat: Filing for bankruptcy is extremely rare. Some smaller cities like Central Falls RI and Stockton CA have done so recently, but I bet if you toted up the muni bankruptices in the entire US in the past year you woildn't need two hands.

[BennyBucks]

Originally Posted by citylove101

No they're not plenty of cities ready to declare bankruptcy. Not even close. Its an extremely, extremely rare occurence, which is why it's all over the papers and TV. Cities have been mismanaged, corrupt, crime-filled, and poor for decades all over the country and hardly any of them declare bankruptcy.

Detroit is unique in that it had only one major employer (the car industry) which shrank and then collpased, and the size of its middle-class exodus over the past 60 years which cut its population by more than half.

Trying to maintain the same civic services and infrastructure you had when you had 1.8 million people now that you have 700,000 or so -- with many of them too poor to contribute to the local economy -- is impossible. Detroit, for all the reasons people commonly cite, could never made the adjustment. Other cities did.

To repeat: Filing for bankruptcy is extremely rare. Some smaller cities like Central Falls RI and Stockton CA have done so recently, but I bet if you toted up the muni bankruptices in the entire US in the past year you woildn't need two hands.

Mass bankruptcies won't be so rare when the bond market goes belly up.

[Craziaskowboi]

Originally Posted by 912

Heh. When you elect incompetents & breed a culture of incompetence, this is what you get. Go blue states!

If it was that simple, then why are Massachusetts, Minnesota and Washington in better shape economically than Mississippi, Alabama and Georgia?

[313Weather]

Originally Posted by Gnutella

If it was that simple, then why are Massachusetts, Minnesota and Washington in better shape economically than Mississippi, Alabama and Georgia?

There you go mentioning those facts again...

But please, let's keep this discussion about Detroit's bankruptcy filing.

[alle]

My heart cries for my hometown

[Mezter]

Wow, this is a bigger deal than I though. Just saw something about this on the News.

[912]

Originally Posted by Gnutella

If it was that simple, then why are Massachusetts, Minnesota and Washington in better shape economically than Mississippi, Alabama and Georgia?

Link please?

[912]

Originally Posted by BennyBucks

Agree. Plenty more of this to come in 'Murika over the years ahead

True, but Detroit is the poster child of all of this. With years of corruption, union thuggery & experiments in liberalism, Detroit's decline was hastened.

[mintgum84]

Crazy times. How does a city of c. 1m people amass 18.6 bn dollars in debt!

Will this open the flood gates is the real question. I mean will we see cities country wide now filing for bankruptcy?

[Retroit]

Originally Posted by augiedogie

Everyone will lose on this, the city the state, taxpayers, city employees, those on city pensions, the unions, the lenders, and the citizens. Only the pigeons will come out unscathed

They're winning now?