ALL BLOG POSTS AND COMMENTS COPYRIGHT (C) 2003-2019 VOX DAY. ALL RIGHTS RESERVED. REPRODUCTION WITHOUT WRITTEN PERMISSION IS EXPRESSLY PROHIBITED.

Thursday, July 18, 2013

Detroit finally files

This bankruptcy filing isn't exactly a surprise, but it does mark a potentially significant step in the deflationary process:
The city of Detroit filed the largest municipal bankruptcy case in U.S. history Thursday afternoon, culminating a decades-long slide that transformed the nation’s iconic industrial town into a model of urban decline crippled by population loss, a dwindling tax base and financial problems. The 16-page petition was filed in U.S. Bankruptcy Court in Detroit....

The Chapter 9 filing could take years, experts say, despite hopes by the governor and Orr that the case can be wrapped up in a year. A bankruptcy judge could trump the state constitution by slashing retiree pensions, ripping up contracts and paying creditors roughly a dime on the dollar for unsecured claims worth $11.45 billion.

During a month of negotiations, Orr has reached a settlement with only two creditors: Bank of America Corp. and UBS AG. They have agreed to accept 75 cents on the dollar for approximately $340 million in swaps liabilities, according to a source familiar with the deal.
$18 billion may not sound like much, but the problem is that due to the way debt is stacked on top of debt, who knows how much more credit money will evaporate on the basis of its debt collateral having vanished.  And it's not terribly surprising that the only creditors who are getting away without too much damage are the largest US bank and the largest Swiss bank.  They know the score, and 75 cents on the dollar is actually better than the average 60 cents on the dollar which their nominal assets are worth.

Where it's going to get very interesting is when either Illinois or California attempts to declare bankruptcy, or, as a sovereign State, simply eliminate its debts by fiat.

Labels:

87 Comments:

Anonymous JI July 18, 2013 6:08 PM  

African-Americans will have a chance to prove that they are capable of running a modern city, now that they've been relieved of that massive burden of debt.

Blogger tz July 18, 2013 6:11 PM  

Where it's going to get very interesting is when either Illinois or California attempts to declare bankruptcy, or, as a sovereign State, simply eliminate its debts by fiat.

Nothing succeeds like secess-ion.

This is actually an advantage for Detroit over Ill and CA(strophe). Detroit now will have a death certificate, but the states will be undead financial zombies.

Detroit is only crippled in the sense of someone who shoots themselves in the foot is crippled.

Ole king Coleman told the John Galts to cross 8 mile. They did.

But as per Mises, if Detroit emerges from Chapter 9 sans the albatross of debt (ancient mariner history may not repeat but does rhyme), it will have advantages over its rivals.

Perhaps it can be turned into one big indian reservation (where Obamacare won't apply).

Anonymous Will Best July 18, 2013 6:25 PM  

I never knew there were so many state's right activists out there. All of a sudden provisions in the state constitution mean something. Never mind the Supremacy clause and, unlike most liberal wet dreams, that bankruptcy is a specific grant of power to Congress, union unfunded liabilities are sacred, the state constitution says so!!!

Anonymous Hardscrabble farmer July 18, 2013 6:32 PM  

I'm confused, why doesn't the Fed simply quantitative ease Detroit back into solvency? 18 billion is what? three days worth at the current level?

Blogger tz July 18, 2013 6:39 PM  

I'm confused, why doesn't the Fed simply quantitative ease Detroit back into solvency? 18 billion is what? three days worth at the current level?

Detroit is mainly black and Bernanke is "Raciss..."

I never knew there were so many state's right activists out there. All of a sudden provisions in the state constitution mean something. Never mind the Supremacy clause\...

You mean the white supremacy santa clause?

There ain't no supremasanta clause.

Anonymous stg58/Animal Mother July 18, 2013 6:39 PM  

The same reason the Fed didn't quantitative ease every homeowner back into solvency.

Anonymous dh July 18, 2013 6:44 PM  

It is interesting to contemplate a strategic bankruptcy by a State. A State, with a nice credit rating could go and bond some big projects, and then tell the creditor to screw. Most States have competent SWAT teams and could repel whatever private security forces had been sent to recover property

Anonymous biff July 18, 2013 6:54 PM  

Ralph Nader's Raiders and Pat Moynihan's predatory regulations rule: Detroit was schooled.

Blogger Eric July 18, 2013 6:55 PM  

But as per Mises, if Detroit emerges from Chapter 9 sans the albatross of debt (ancient mariner history may not repeat but does rhyme), it will have advantages over its rivals.

The odds that they won't dive right back into unsustainable debt are very nearly zero.

Anonymous Will Best July 18, 2013 6:59 PM  

Also, you don't generally come out of bankruptcy sans debt. You generally end up with affordable debt. So instead of $20 billion, they will probably still be carrying 7-9 billion. Which will plunge them right back into bankruptcy when they lose the last remaining 50-100k worth of productive citizens.

Anonymous Brian July 18, 2013 6:59 PM  

City, States and Federal governments are nothing more than corporations. Fictional entities. Think about this. How tough would it be if your local softball team decided it needed to borrow $100 million, even if the credit of the members of the team was sufficiently high enough to obtain it? Not a chance. But incorporate? Here you go. The mayor of Detroit is nothing more than the CEO of DETROIT, Inc. Hence the lack of concern rigging elections and stuff; you don't own the government, so why would you care who runs it any more than random corporation, USA? Those clamoring for a libertarian society first need to eliminate governments as corporations or else the tyranny, credit, and taxation will continue.

Blogger IM2L844 July 18, 2013 7:01 PM  

Are the dominoes beginning to wobble?

Only 16 pages for a matter of such great importance? Makes the petition for your ouster from the SFWA look a little excessive by comparison, eh?

Blogger Crude July 18, 2013 7:03 PM  

You guys are blowing this out of proportion. Sure, Detroit is bankrupt - big deal. But they can be pulled out of this hole. They just need a wealthy corporation to bail them out in exchange for having control over the city's services. Their police departments, their utility companies, etc.

Granted, it'd have to be a big corporation with expertise in many areas. An Omnicorp, if you will.

Anonymous Salt July 18, 2013 7:19 PM  

DOW up 78 today. All time high. Detroit was not unexpected. Guess its been priced in. What does that say about Detroit?

It's already been discounted.

Blogger tz July 18, 2013 7:20 PM  

@Crude You guys are blowing this out of proportion. Sure, Detroit is bankrupt - big deal. But they can be pulled out of this hole.

Enigma or enema?

Blogger Scott July 18, 2013 7:23 PM  

beyond the prosaic observation that the previous straw did not break the camel's back

Brilliant

Blogger Doorstop July 18, 2013 7:27 PM  

On July 13, 2013, hip hop superstar 'Akon' tweets: "Every African American in the United States need [sic] to move their money, family, knowledge back to Africa"

Five days later, the city of Detroit files for Chapter 9 bankruptcy.

Coincidence?

Anonymous geoff July 18, 2013 7:39 PM  

he didnot mean it

Anonymous stg58/Animal Mother July 18, 2013 7:40 PM  

As long as Robocop exists, I am down with that. He is very polite.

Anonymous Red Comet July 18, 2013 7:40 PM  

And to think, RoboCop was supposed to be a satire.

lol

Blogger Crude July 18, 2013 7:41 PM  

Every African American in the United States need [sic] to move their money, family, knowledge back to Africa

I suppose they can call it Liberia 2.0

Anonymous Concerned Rabbit Hunter July 18, 2013 7:47 PM  

"Every African American in the United States need [sic] to move their money, family, knowledge back to Africa"

Two of those three are not worth much.

Anonymous Rusty July 18, 2013 7:51 PM  

Every African American in the United States need [sic] to move their money, family, knowledge back to Africa

I suppose they can call it Liberia 2.0


Yeah, that'll work.

At least, until they actually get to live in Africa. They would be begging to be slaves again after a few months...

Anonymous Harsh July 18, 2013 8:20 PM  

Granted, it'd have to be a big corporation with expertise in many areas. An Omnicorp, if you will.

Coincidentally, I've been working on an automaton that does police work, an enforcement droid let's call it. I'm about to roll out prototype 209.

Anonymous ENthePeasant July 18, 2013 8:23 PM  

Strange times. Detroit has been bankrupt for 20 years but they've managed to pull all kinds of tricks to keep that mess alive. It kinda makes one wonder how long the US can keep up similar nonsense? A few years ago I used to say that when Detroit goes you'll start to see more and more cities go, and then states, and finally the big boy Feds. But instead of Detroit being the one that got the ball rolling it was Stockton. And they did renege on their pension system... and city employees who are still working threatened to quit... but they didn't. So maybe it all works out?

Anonymous zen0 July 18, 2013 8:29 PM  

Every African American in the United States need [sic] to move their money, family, knowledge back to Africa

I second the motion.


All in favor?

Anonymous ENthePeasant July 18, 2013 8:30 PM  

"Every African American in the United States need [sic] to move their money, family, knowledge back to Africa"

Seriously? Don't tease me like this. It's cruel. Can one imagine the horror. We'd collapse in a day... OK, I'm kidding... although Africa would never forgive us.

Anonymous Harsh July 18, 2013 8:36 PM  

Seriously? Don't tease me like this. It's cruel. Can one imagine the horror. We'd collapse in a day... OK, I'm kidding... although Africa would never forgive us.

Maybe we can make a trade. African Americans for Afrikaners.

Anonymous Will Best July 18, 2013 8:40 PM  

Every African American in the United States need [sic] to move their money, family, knowledge back to Africa

Well it would make the NFL and NBA a bit less interesting. But I would still enjoy the NHL or MLB if I got bored

Anonymous ENthePeasant July 18, 2013 8:48 PM  

"Maybe we can make a trade. African Americans for Afrikaners."

Pure genius my friend. We can remove the stain of Afrikaners creating an advanced society in black Africa. South Africa returns to what it should be by all rights and we get some hard working people. Black Africans will still have plenty of stuff over to steal (for a while) not to mention they will be rescuing other oppressed brothers from the US. Everyone wins.

Blogger Cinco July 18, 2013 8:49 PM  

hip hop superstar 'Akon' tweets: "Every African American in the United States need [sic] to move their money, family, knowledge back to Africa"

Fo' reelz?

Maybe the liberals have a super secret plan too. Make them so stupid they will leave of their own volition?

Anonymous ENthePeasant July 18, 2013 9:02 PM  

"Maybe the liberals have a super secret plan too. Make them so stupid they will leave of their own volition?"

Pinch me, I must be dreaming... My mind is working too fast. OK, let's assume for the sake of argument that White liberals really mean what they say about wanting to live in a multicultural shithole. This would mean about 65% of white women, but it's a double win for us. After they go we take the vote away from women so we never have to deal with the socialist/totalitarian dreams of white women any longer and they get to live in the society they keep saying they want. Is anyone else starting to feel the excitement?

Anonymous TheExpat July 18, 2013 9:12 PM  

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/07/if%20i%20had%20a%20city.jpg

lololzzolozzlolol

Blogger tz July 18, 2013 9:17 PM  

hip hop superstar 'Akon' tweets: "Every African American in the United States need [sic] to move their money, family, knowledge back to Africa"

Can we run a telethon? I'm quite sure many will contribute.

Think of it as the anti-pole of Galt's gulch. Sending all the moochers and looters where it would be hard for them to loot or mooch sounds like a rather innovative and good idea.

Anonymous Mike M. July 18, 2013 9:23 PM  

We need a formal process for a government to declare bankruptcy...and it needs to hurt.

Were it up to me, the process would involve the following:
1. Complete dissolution of the government. Including forfeiture of the vote for all residents, and forfeiture of representation in the legislature. Every member of the state legislature and of Congress from Detroit needs to be escorted home.
2. All current and former elected officials are proscribed. They may not seek elective office nor participate in the political process. No prosecution...any former official who does is formally an outlaw and may be killed by anyone at will.
3. Appointment of an Administrator who has the ability to rule by decree.
4. Sale of all physical assets that are portable. Fixed assets too, if possible.
5. Division of the remaining debt among the citizens individually. They pay an extra 10% income tax, and may not vote or collect a welfare until their personal debt is paid.

Blogger tz July 18, 2013 9:25 PM  

The SFWA should sponsor Afri-Con.

In the deepest part of the inner city. Scalzi can wear his Regency dress.

Does the SFWA accept donations in the form of organs? Just kidneying. Wurlitzers and Hammonds would be cumbersome.

Blogger Markku July 18, 2013 9:34 PM  

Sending all the moochers and looters where it would be hard for them to loot or mooch sounds like a rather innovative and good idea.

...or would have been, were it not for Douglas Adams

Anonymous JW July 18, 2013 9:41 PM  

"The odds that they won't dive right back into unsustainable debt are very nearly zero."

And those that got burned by lending the money in the first place will loan them the money again.

Blogger tz July 18, 2013 9:53 PM  

"The odds that they won't dive right back into unsustainable debt are very nearly zero."

But, but but tax-free munis!

Unsustainable debt can be a serial thing.

Or about 100 Miles to the west is Battle Creek if you want to do worry about cereral killers.

Blogger tz July 18, 2013 9:56 PM  

Just remember the full faith and credit of Kwame Kilpatrick, or similar backs things.

The equal of zimbabwe, haiti, or ugandan bonds.

Blogger TontoBubbaGoldstein July 18, 2013 9:57 PM  

$18 billion may not sound like much

Either this is a Poe's Law thing or I am really old and out of touch.....

What? Huh? GET OFF MY LAWN!!

Every African American in the United States need [sic] to move their money, family, knowledge back to Africa

Throw me in that briar patch. Please.

Well it would make the NFL and NBA a bit less interesting. But I would still enjoy the NHL or MLB if I got bored

I think it would improve the NBA. But, yeah, it would make the NFL suck.

OT: A shout out to Charles Barkley---he, rightfully, agrees with the Zimmerman verdict.

Anonymous zen0 July 18, 2013 10:04 PM  

Aren't the feds just going to add it to their debt? Bail out Union Street, right?

Anonymous HardReturn July 18, 2013 10:12 PM  

@Mike M. and others:
Is there a means for state expulsion? If Ill. and Cal. are allowed to be too big to fail, rather than prudent amputation of a gangrenous limb, incentives increase for others to get a piece of the bailout action if there's no real penalty. Is there any contingency for reversion to territory--expulsion of federal reps and senators, installation of territorial governor? Seems like loss of fed representation would be generous trade-off for getting statewide bailout. Then the race to the bottom could really accelerate.

Anonymous TheExpat July 18, 2013 10:20 PM  

"The odds that they won't dive right back into unsustainable debt are very nearly zero."

And those that got burned by lending the money in the first place will loan them the money again.


Because they will be bailed out by the use of public funds (taxes) and/or printing money with nary a whiff of real revolt from the productive class and savers, which just shows who the bigger fools really are.

Anonymous p-dawg July 18, 2013 10:21 PM  

@Markku: Hey, just because an idea's been thought of before doesn't mean it is not still a good idea...

Anonymous Anonymous July 18, 2013 10:25 PM  

SaltJuly 18, 2013 7:19 PM
DOW up 78 today. All time high. Detroit was not unexpected. Guess its been priced in. What does that say about Detroit?

It's already been discounted.


I expect the market is happier thatthe union will be taking a beating.

- Azimus

Anonymous Anonymous July 18, 2013 11:09 PM  

I have been in the hyper-inflation camp for some time... But Vox, you and others have made me agnostic, with a leaning towards deflation.

Would you recommend gold and silver? Or just cash and cash equivalents?

Anonymous The other skeptic July 18, 2013 11:16 PM  

Would you recommend Golden Tiger 7.62 x 39?

I guess I will find out soon.

Blogger James Dixon July 18, 2013 11:20 PM  

If the bankruptcy judge had any sense he'd rule out chapter 9 and go straight to chapter 11. Sell off all of Detroit's assets, use the proceeds to pay of as much of the debt as possible, unincorporate the city, and bar any portion of it from incorporating again for at least 20 years.

But that will never happen.

Anonymous Anonymous July 18, 2013 11:20 PM  

"Would you recommend Golden Tiger 7.62 x 39?"

Tula and Wolf work fine for me.

- REMF

Anonymous dh July 18, 2013 11:35 PM  

Mike M.

Making it hurt, why, to reward the financial dealers selling cities credit swaps, piling up bond debt that they obviously can't pay?

This is the risk, people. You lend money to a government, you may not get it paid back.

Price that into your rates, and know that if the models and promises aren't kept you aren't getting your money back. LIKE ANY LOAN.

Anonymous DonReynolds July 19, 2013 12:01 AM  

Jay Teros..."I have been in the hyper-inflation camp for some time... But Vox, you and others have made me agnostic, with a leaning towards deflation."

No matter what free advice you get, what do you actually believe?

More specifically.....

Do you believe the "collapse" will occur and when it does, the result will be shortages of many goods and services, and will that necessarily mean that the prices of these will go through the roof, rendering money nearly worthless? (Not worthless, mind you, just of such nominal value that it takes considerable dollar bills to buy items that were once cheap and commonplace.) This would be a failure of transporation or dramatic influx of additional people, above and beyond that provided for.

Or do you believe that the "collapse" will occur with a dramatic drop in the general price level, increasing the purchasing power of the dollar? In such a situation, production would be stopped until that distant day when inventories might be exhausted. (I could only imagine this situation in the event of a serious depopulation due to war, or pandemic or plague of one kind or another, decimating the population. Dramatic, but not impossible or even unlikely.)

Soon, you will have to place your bet.

Anonymous DonReynolds July 19, 2013 12:22 AM  

Let's not get too giddy about the failure of Detroit, especially since there are a dozen or two dozen major cities in this country following along in the same path. One thing Detroit does well (along with Philly, Chicago, Atlanta, Memphis, et al) is provide a dumping ground for millions of incredibly worthless individuals, whose only contributions to society are their demands for life-sustaining goods and services of all kinds. These needs are generally paid for with government welfare dollars, supplemented by a pasttime of petty crime and drug trade. The point being, if each of these cities fail completely, then the tens of millions of ethnic individuals who live in them will leave the nest and scatter. Maybe a better plan would have a happier outcome?

Anonymous Anonymous July 19, 2013 12:23 AM  

"Soon, you will have to place your bet."

Indeed I will. Thanks for your thoughts.

Blogger Bosefus July 19, 2013 12:48 AM  

Detroit is dead. Get on Google Earth and take a street level tour while you can before nature has reclaimed all their past men's dreams and their labor spent back into the ground. Gee I wonder what could have possibly gone wrong???

And the answer is... "the socialist/totalitarian dreams of white women any longer and they get to live in the society they keep saying they want."--I believe they made a movie about this. A rich man's daughter thinks she can make a go of a plantation with the freed people of color and the ending is quite ironic. The hip old color guy who's really in charge sets her clock back and so she misses her Dad's offer of rescue. The irony is she then becomes as tyrannical as the plantation masters of old to keep things in order but on the upside she gets her womanly needs met just like slave masters of old. I guess women bosses in that Hollywood way would be better for men. But alas today, they just be bosses and no hanky panky.

Is it just me being enlightened lately by Vox/others or has the on the ground situation/powers changed and things really are going to hell in a hand basket? On the other hand, nothing's new under the sun and the Son also rises.

http://www.youtube.com/watch?feature=player_detailpage&v=yjsL1OTHv7U

Blogger Bosefus July 19, 2013 12:58 AM  

On the other hand, I would let Emmy Lou rule my roost any day...

http://www.youtube.com/watch?feature=player_detailpage&v=Jvp3-H1saIA

We can rebuild in the morning.

Blogger Bosefus July 19, 2013 1:15 AM  

Ok, final thought... after careful scientific study by science, women are found to be devils in disguise... The moon is full and well... devils do what they do.

http://www.youtube.com/watch?feature=player_detailpage&v=BITiY8M_oDo

Blogger Bosefus July 19, 2013 1:34 AM  

Ok, I warned you... and you know it... but you just cant help it, can ya...

http://www.youtube.com/watch?feature=player_detailpage&v=_iQSTCkq3ig

Anonymous bob k. mando July 19, 2013 1:41 AM  

Crude July 18, 2013 7:03 PM
Granted, it'd have to be a big corporation with expertise in many areas. An Omnicorp, if you will.




hah.

they're remaking Robocop.
http://www.omnicorp.com/




dh July 18, 2013 11:35 PM
Price that into your rates, and know that if the models and promises aren't kept you aren't getting your money back. LIKE ANY LOAN.




in any NORMAL loan, there is collateral. that collateral is forfeit if the loan is delinquent.

what is the collateral for Detroit?

i'd settle for the heads of all of the council members and mayors since 1960.

but then, i didn't loan them any money and don't have standing.

Blogger Jordan179 July 19, 2013 1:45 AM  

The biggest problem any city or state which declares bankruptcy will have will be the fact that would-be future creditors won't trust them, and hence won't loan them funds. Between the failure of its auto industry and the municipal government's deliberate and insane attempt to de-urbanize, Detroit is going way, way down -- I think it will be a decade or maybe even a generation before the city gets back even to the levels of wealth and population she had just 10 years ago.

Blogger Bosefus July 19, 2013 1:50 AM  

Pablo Picasso drove El Doroados... not like you...

http://www.youtube.com/watch?feature=player_detailpage&v=k43XjuhInkU

He ate avacados... Like Jim Morrison on Venice Beach roof tops. It's a living. Uh... what was the topic?

Blogger Bosefus July 19, 2013 2:23 AM  

Kids today...

http://www.youtube.com/watch?feature=player_detailpage&v=sEW-Qb2qqA8

Anonymous rho July 19, 2013 2:41 AM  

DOW up 78 today. All time high. Detroit was not unexpected. Guess its been priced in. What does that say about Detroit?

It's already been discounted.


I expect the market is happier thatthe union will be taking a beating.


The stock market is a shitty metric. It's like using hemlines to determine the best music genre.

It's quite sad to see Detroit fall so far. It was a Great American City, and we don't have all that many to spare.

Blogger Bosefus July 19, 2013 2:49 AM  

Let's try to be adults here...
http://www.youtube.com/watch?feature=player_detailpage&v=sZNtEz67XQY

Anonymous stats79 July 19, 2013 3:19 AM  

I think it will be a decade or maybe even a generation before the city gets back even to the levels of wealth and population she had just 10 years ago.

Oh, please. Detroit is dead. It will never again see a population increase or an increase in wealth.

Blogger Jordan179 July 19, 2013 4:13 AM  

Oh, please. Detroit is dead. It will never again see a population increase or an increase in wealth.

It's dying right now. It won't recover rapidly, but it would be very improbable for the city to just shrink forever. That generally only happens to cities when the civilization which built them collapses, and I don't mean just locally. And forever is a long time.

Blogger James Dixon July 19, 2013 6:07 AM  

> The biggest problem any city or state which declares bankruptcy will have will be the fact that would-be future creditors won't trust them, and hence won't loan them funds.

You may be familiar with an old phrase. It goes something like: "There's a sucker born every minute." They'll be able to borrow again.

Anonymous gabriel_rom July 19, 2013 7:20 AM  

On July 13, 2013, hip hop superstar 'Akon' tweets: "Every African American in the United States need [sic] to move their money, family, knowledge back to Africa"

It reminded me about this:


https://www.youtube.com/watch?v=4DE2ggufnMw

Anonymous dh July 19, 2013 7:27 AM  

in any NORMAL loan, there is collateral. that collateral is forfeit if the loan is delinquent.
This isn't true. There are unsecured loans made all the time. Not unusual at all. The loan is made upon ability to repay.

Anonymous dh July 19, 2013 7:31 AM  

The biggest problem any city or state which declares bankruptcy will have will be the fact that would-be future creditors won't trust them, and hence won't loan them funds.

This is sentiment of a person unfamiliar with the world of finance. In fact, finance companies love to loan money to freshly bankrupted companies. It's called bridge lending, and when done in connection with a bankruptcy filing, it is very lucrative for lenders. Since it is the first loans made to a newly reorganized company, it can be both senior, at a cost premium, and very secure. The only real worry for the lender is that the company never exists bankruptcy, which happens, but not all that often.

Even in personal finances after bankruptcy discharge you can be back to prime borrower status in about two years.

Anonymous Shutterbug July 19, 2013 7:37 AM  

DonReynolds: They won't leave en masse. A few creative ones will, but the lesson from Hurricane Katrina is that Ghettopotomus ignoramus (kudos to whoever came up with that one!) stay put and die because she lacks the motivation to save herself.

They'll eat each other before they'll get up off their fat backsides and put forth any real effort at self-sufficiency. For the ones that do get out, just rewrite all the road signs in cursive. They'll be flummoxed and immobilized.

Anonymous Harsh July 19, 2013 7:55 AM  

Detroit is dead. Get on Google Earth and take a street level tour while you can before nature has reclaimed all their past men's dreams and their labor spent back into the ground. Gee I wonder what could have possibly gone wrong???

A new city should be built on the old. Sometimes you just have to start from scratch and get things right. The city should have a new name like Alpha City or Beta City... you get the idea.

Anonymous Harsh July 19, 2013 7:56 AM  

It's dying right now. It won't recover rapidly, but it would be very improbable for the city to just shrink forever. That generally only happens to cities when the civilization which built them collapses, and I don't mean just locally.

Well, there's no chance of American civilization collapsing, so we're good.

Blogger njartist July 19, 2013 8:12 AM  

@ Bosefus July 19, 2013 12:58 AM
You just provided a key to Emmylou Harris' music career.

http://www.youtube.com/watch?v=IiPfKgwmI3c

Blogger Joshua Dyal July 19, 2013 8:38 AM  

It's dying right now. It won't recover rapidly, but it would be very improbable for the city to just shrink forever. That generally only happens to cities when the civilization which built them collapses, and I don't mean just locally. And forever is a long time.

Gary, IN

Blogger Ciphra Summam July 19, 2013 9:24 AM  

It's called bridge lending, and when done in connection with a bankruptcy filing, it is very lucrative for lenders.

Right, but bridge loans are usually short term, and at a higher interest rate.The risk is short duration and with good yields. Securing a longer term note would seem much more difficult to lend long-term unsecured.

Would you lend to Detroit with due diligence in determining whether they will ever pay it back, especially after a debt restructure?

Anonymous The other skeptic July 19, 2013 9:41 AM  

Chicago public employees to feel the pain too

Well, teachers and etc.

Anonymous wcu July 19, 2013 11:01 AM  

I think its about time that we give Detroit back to the French.

Anonymous Desiderius July 19, 2013 11:27 AM  

dh,

"The loan is made upon ability to repay."

In the case of Detroit, what do you imagine to be the sources of such ability? The proceeds from urban agriculture? A Million EBT-card March?

Anonymous The other skeptic July 19, 2013 11:36 AM  

While even necrophilia is probably acceptable in Detroit, it looks like incest and polygamy are next up for the US

Blogger RobertT July 19, 2013 11:55 AM  

Before this is all over that's where we will all be going.

Blogger CarpeOro July 19, 2013 12:38 PM  

"This is the risk, people. You lend money to a government, you may not get it paid back.

Price that into your rates, and know that if the models and promises aren't kept you aren't getting your money back. LIKE ANY LOAN."


The real reason that Jews got expelled time and again from countries? They made loans to the rulers, who didn't want to pay them back. Governments have generally been bad loan risks since the invention of banking.

Anonymous Not Ace July 19, 2013 4:49 PM  

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.”

...

“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.

----

She actually speaks of the Great He as if he is a God, watching down upon us, or a child's conception of a god, such as Santa Claus. http://minx.cc/?post=341790

Anonymous Harsh July 19, 2013 10:32 PM  

She actually speaks of the Great He as if he is a God, watching down upon us, or a child's conception of a god, such as Santa Claus. http://minx.cc/?post=341790

It would be funny if that stupid slag does halt the bankruptcy and the whole city turns into Thunderdome.

Anonymous Anonymous July 20, 2013 1:03 AM  

Incest is probably a self-correcting problem in the very long term. There are genetic reasons why you shouldn't be breeding with close relatives. Unfortunately, the inevitable long-term correction firstly is not much compensation for the innocent unfortunates born with double sets of bad recessive genes; and secondly, society being what it is, everyone else except the incestuous parents (who no doubt will become a 'protected class') will probably be expected to pay for the medical costs caused by the resultant genetic problems.

Anonymous Anonymous July 20, 2013 1:12 AM  

**“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.**

See, I don't like this. I have a real hard time grasping why these people, who have for God knows what reason, been given a much higher status in society than I have, are completely disconnected from reality. This judge acts as if money were simply something that magically comes out of a printing press, and there can be as much of it as we want. But the thing is, as Ayn Rand wrote, money is a symbol of production, and production is a finite quantity. Claiming that Obama will have to take action to make sure that existing pension commitments are honored is all well and good, but if there is not enough wealth to do so, it's pretty much like ordering someone to make sure your horses are fed, when there isn't any hay or grain in your silo. Not going to happen, and talking as if it were going to happen indicates a serious mental disconnect with reality.

Anonymous ericcs July 20, 2013 5:24 AM  

It's time for the vibrant dwellers of Detroit to protest the Zimmerman verdict.

"Show them YT's that they all be racisss !!!
Burn it all to the ground !!!
Do it to the inner cities of Birmingham, Atlanta, Liberty City, Chicago... !!!
And if the locals burn too, it only prove even more that YT be racisss !!!"

Seems good to me... after all, leftism has been repeatedly proven to be a suicide cult. Let the games begin !!!

Post a Comment

Rules of the blog
Please do not comment as "Anonymous". Comments by "Anonymous" will be spammed.

<< Home

Newer Posts Older Posts