Is It Too Late To Save Detroit---Not If Liberals Democrats Are In Charge (county, elect)

[zombocom]

Originally Posted by michiganmoon

Detroit files for bankruptcy - Jul. 18, 2013

Deserves its own thread.

How does Detroit rebound? What were the causes of its problems?

Death of American manufacturing, Detroit isn't the only city to suffer from this, and most were unable to diversify and maintain a healthy economy.

[BigJon3475]

Originally Posted by Little-Acorn

Anybody know how much the city had promised its workers in future pension plans, that it was then unable to pay when they started actually retiring?

Seems to be the common factor in most city financial crises nowadays.

How many such pensions were "negotiated" by unions?

The Pension Trust Funds, although not great, are not what's killing Detroit. It's their credit ratings:

City of Detroit General Obligation Debt Ratings
Moody's Investors Services
Unlimited Tax
Limited Tax
Caa2
Caa3
Standard & Poor's
Unlimited Tax
Limited Tax
CCC-
CCC-
Fitch Ratings
Unlimited Tax
Limited Tax
CCC
CC

Finance Debt Management Division | City of Detroit | www.detroitmi.gov

They can no longer fund their debt...

Total net debt applicable to the limit
as a percentage of debt limit
2012 - 92.65%
2011 - 84.82%
2010 - 75.46%
2009 - 59.10%
2008 - 54.50%

http://www.detroitmi.gov/Portals/0/d...Statements.pdf

[Rakin]

The high murder rate there will slowly take care of much of the problem.

[BigJon3475]

Originally Posted by Little-Acorn

Government-union contracts are between three sides:

1.) The union
2.) The government who collects taxes to pay them
3.) The citizens who pay taxes for city services

One of those sides was NEVER present during contract negotiations and signings. (Hint: It wasn't the union or the govt).

True, and now that they've filed for Chapter 9 the Trust Funds aren't willing to budge an inch. It's only the "collective" so long as it's other people's money. More liberal hypocrisy.

[Little-Acorn]

Originally Posted by BigJon3475

True, and now that they've filed for Chapter 9 the Trust Funds aren't willing to budge an inch. It's only the "collective" so long as it's other people's money. More liberal hypocrisy.

And it is NOT a coincidence, that the side that wasn't present, is now the side that is bugging out of Detroit and letting the city collapse.

Note that the citizens who did NOT pay taxes, or who paid very few, are the ones still staying around and expecting to collect all the usual freebies from the city.

[lvoc]

It is more interesting than that. If the State Constitutional provision holds up it sounds like Michigan may be on the hook. Detroit simply dissolves. Then what?

One of the many problems here was the formation of the suburban ring cities. Allowed the well off to move out of the city and its problems. That led both to the unavailability of tax revenue and the lack of skilled pressure for good government.

But perhaps dissolving the city is the thing to do.

[aneftp]

Folks. This is just the beginning. We have had a few cities declare BK 9 already. Detroit is the lastest.

This is what happens when the tax numbers don't add up. I see no democrat racing in to defend these city BK filings.

Some pensions refuse to give even a tiny bit (like some are guaranteed 1-3% raises cost of living instead of freezing those raises).

Sadly many of these pensions are now on the US taxpayers watch when cities declare BK.

[Little-Acorn]

So, who empties the trash cans every week now?

Who runs the water plants? The power plants? Who pays the police and fire departments?

I'm glad I don't live there right now.

[Rakin]

The response rate for the Detroit Police is 58 minutes.

I'd make sure I was well armed if I lived in that city.

[KickAssArmyChick]

If Obama had a son, it would look like Detroit.