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Detroit Files For Chapter 9 Bankruptcy Protection

Discussion in 'Politics, Elections & Legislation' started by pendennis, Jul 18, 2013.

  1. pendennis

    pendennis Well-Known Member

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    At approx. 4:00PM today, the Emergency Financial Manager for the City of Detroit, MI, filed a petition for Chapter 9 bankruptcy protection, in the Federal 6th District Court. Approval for the filing was approved by the governor, Rick Snyder. It's the largest municipal bankruptcy in the history of the country.

    Detroit's debt is estimated to be as high as $20 Billion.

    The move has been in the works since Keven Orr was appointed as the city's Emergency Financial Manager. The Michigan EM law gives wide latitude to the EFM in handling the city's financial matters.

    Two of the major debt-ridden funds are the Detroit General Retirement and the Fireman's and Policeman's Retirement funds. Those are estimated to be as much as $10 Billion underfunded. Both funds filed a lawsuit in Ingham County Circuit Court on Thursday, probably prompting a preemptive move to stop all legal action against the city. The pension funds' complaint has been that the EFM hasn't bargained in good faith.

    This day's been coming for over 25 years. Detroit has borrowed money for current operating expenses, and the pension funds have made questionable investments in the past.

    The lead judge in the 6th Judicial Circuit will have to approve the petition, and if approved, will appoint a judge to oversee the process. It's estimated that legal costs will exceed $100 Million.

    All I can add, is that anyone who didn't see this one coming, must be Helen Keller blind and deaf.
     
  2. bigdogtx

    bigdogtx Well-Known Member

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    Will this be a "too big to fail" and get a "bailout",,,,,,,,if they get one just watch the dominoes fall as more and more will follow suit to cover their pensions that no one had any skin in the game to be realistic with..........
     
  3. bigbore613

    bigbore613 Active Member

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    Canned goods and ammo. Jeff
     
  4. crusha

    crusha TS Member

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    Generalized municipal debt is considered "unsecured."



    Are you ready for your "GM Haircut," bondholders?
     
  5. GW22

    GW22 Active Member

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    Yo, Mutha Fuggiz -- let's put liberals in charge of EVERYTHING.


    gw22_2008_0303333.jpg
     
  6. Brian in Oregon

    Brian in Oregon Well-Known Member

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    But but but Detroit was a liberal and union utopia.
     
  7. alf174

    alf174 Member

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    Its hard not to hear the details of this as the local news media has covered it heavily. Personally I believe the EFM has done a good job and offered to sit down with the creditors but they resisted. Years of corruption, union heavy hands in negotiating, and a population that is shrinking like crazy has created this mess.

    Surprising move, the EFM also stated that municipal bond holders will be considered non-secured debt. That raised a few eye-brows.
     
  8. CalvinMD

    CalvinMD Well-Known Member

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    Maybe Stevie Wonder will do a benefit concert to help the city since he wont be in Fla....oh wait..no jobs..no money..nobody will be there
     
  9. Don Steele

    Don Steele Well-Known Member

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    Perhaps anyone collecting a UAW, or Detroit municipal employee pension should be required to live in Detroit or lose their benefit..??
    The influx of well-to-do retirees oughta solve all their fiscal problems in no time, using the dollars extorted from the city in the first place.
     
  10. alf174

    alf174 Member

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    How does the pension a former UAW employee collects have anything to do with the city of Detroit's fiscal condition? Do you realize the UAW means United Auto Workers? And that almost all auto plants are spread out over the entire country?
     
  11. Don Steele

    Don Steele Well-Known Member

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    Of course I know who the UAW is, and the billions they've received over decades of being a power in Detroit.
    Personally...I would object to such a mandate, but we've come to learn in recent years that liberals and Big Labor goons just LOVE unconstitutional mandates, so THIS ONE should be no problem for them to swallow.
     
  12. Setterman

    Setterman Well-Known Member

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    This is the start of the domino effect. Watch the progressive politicains rush to to the Senate for a "municipal retirement bail out". Detroit's Retirement Plan debt is 3.5 Billion. If that happens, every large city with massive debt(near 20 right now) will file as well.

    The Obama administration will want to bail them out (votes and redistribution). He wanted to double down on TARP anyway. Bondholders are screwed again.

    The affect on the municipal bond market will be ugly.
     
  13. Brian in Oregon

    Brian in Oregon Well-Known Member

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    Maybe that's what Detroit should so. Put an income tax in place on pensions for anyone who worked in Detroit. Seems like the liberal thing to do. States do it, why not cities?
     
  14. Jerbear

    Jerbear TS Member

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    jerbear_2008_0303267.jpg





    Jerbear
     
  15. Chichay

    Chichay TS Supporters TS Supporters

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    No amount of BS will beat the laws of Economics.
     
  16. 3357

    3357 Member

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    Detroit has been a jungle out of control for 50 years. It is also the colon of Michigan
     
  17. gun1357

    gun1357 Active Member

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    Funny what 3357 said. When I was going to college at GMI in Flint the common saying was "If the United States ever got an enema the tube would be inserted in Detroit." That was 55 years ago. Ron
     
  18. alf174

    alf174 Member

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    Just wondering where this came from: "and the billions they've received over decades of being a power in Detroit."

    Detroit has had a city tax for anyone that works there - it got squandered like the rest.
     
  19. gun1357

    gun1357 Active Member

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    I seem to remember that the government has taken over reduced pension payments for companies that have gone broke. Airlines come to mind. How would this be different? Ron
     
  20. alf174

    alf174 Member

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    I heard on the local news that the judge that was petitioned turned it down. Apparently there is a federal option.