Detroit is about to run out of cash.

California out of Cash
Detroit out of Cash
USA out of Cash

Wall Street doing better than ever, Stock Market about to reach new record high previously set in 2007, Corporations raking in record profits. Hmmm.

wake up people its a false choice you don't run a government like you run you home finances. A clever false narrative that Americans are waking up to.

Quote from HEATBaller : California out of Cash Detroit out of Cash USA out of Cash Wall Street doing better than ever, Stock Market about to reach new record high previously set in 2007, Corporations raking in record profits. Hmmm. wake up people its a false choice you don't run a government like you run you home finances. A clever false narrative that Americans are waking up to.

States are certainly difference than the Federal Government. States cannot coin their own money. States cannot force the Fed to buy their bonds. So state DO need to balance their books. Otherwise they end up repudiating debt (which has happened before) and farking the whole state economy for several years.

Quote from HEATBaller : California out of Cash Detroit out of Cash USA out of Cash Wall Street doing better than ever, Stock Market about to reach new record high previously set in 2007, Corporations raking in record profits. Hmmm. wake up people its a false choice you don't run a government like you run you home finances. A clever false narrative that Americans are waking up to.

What does Wall Street have to do with California/Detroit?

Have we been running government like most people run their home finances? What are you proposing we change?

The report said Detroit continues to deplete its cash reserves and faces a cash deficit of $100 million by June 30 without significant spending cuts. The city has long-term liabilities including pensions exceeding $14 billion, it said.



Wow. Does Detroit even have $14 billion in assets?

Quote from HEATBaller : California out of Cash Detroit out of Cash USA out of Cash Wall Street doing better than ever, Stock Market about to reach new record high previously set in 2007, Corporations raking in record profits. Hmmm. wake up people its a false choice you don't run a government like you run you home finances. A clever false narrative that Americans are waking up to.

Quite obviously...none of the above run/operate as a business or as ordinary people manage their home finances.

Quote from Krazen1211 : The report said Detroit continues to deplete its cash reserves and faces a cash deficit of $100 million by June 30 without significant spending cuts. The city has long-term liabilities including pensions exceeding $14 billion, it said. Wow. Does Detroit even have $14 billion in assets?

Not even close. The water department is one of the best in the country, but nowhere in the vicinity of $14B.

Now, where are all those fools that believe that public pensions and benefits programs are not contributing to local and state government budget problems?

California, Illinois, Detroit, et al...same common theme...massive public sector unions, golden benefits that union-backed, Democratic officials will not touch.

Governor to announce EFM decision tomorrow; State takeover of Detroit possible

http://www.wxyz.com/dpp/news/regi...z2MEZBaBi0

Quote : Detroit Mayor Dave Bing says he spoke by phone with Michigan Governor Rick Snyder today. He says the governor will announce his decision regarding the possible appointment of an Emergency Financial Manager for the city of Detroit on Friday. The mayor said, "Everybody's got a pretty good idea of what the announcement is going to be."

"Detroit will be just fine. I heard there is a "housing recovery" going on."

hahaha

Game over.

Bing tried. Gotta give him some credit personally at least. The City Council is a completely lost cause though. Their reaction to the news should be interesting. Not going to be pretty. lol

So basically the state is going to take over and run the city finances because the mayor and the city council drove it into the ground lolol.. But the city can reject EFM and let the city burn lol I bet they will because they don't want someone coming in and slashing everything

Quote from Mr.Ritz : So basically the state is going to take over and run the city finances because the mayor and the city council drove it into the ground lolol.. But the city can reject EFM and let the city burn lol I bet they will because they don't want someone coming in and slashing everything

For those of us who lived in Detroit, we properly recognize that the fight will come down on racial lines. The city's blacks will scream that the whites are trying to take the City back.

The same carping happened when the outer-ring suburbs were proposing that the City give up control of the water system that served all of SE MI...

Quote from jonsmith74 : For those of us who lived in Detroit, we properly recognize that the fight will come down on racial lines. The city's blacks will scream that the whites are trying to take the City back. The same carping happened when the outer-ring suburbs were proposing that the City give up control of the water system that served all of SE MI...

Why did the suburbs want control of the water?

Michigan to take over Detroit city government [cnn.com]

Quote : Michigan Gov. Rick Snyder announced Friday that the state will take over the operations of Detroit's city government due to its long-standing financial problems. The takeover is short of a formal bankruptcy, but it will include appointing an emergency manager who would have many of the same powers as a bankruptcy judge. It could mean throwing out contracts with public employee unions and vendors that the city can't afford, and could lead to further cutbacks in already depleted city services.

Quote : Detroit has 10 days to appeal Snyder's decision that there is a financial emergency in the city. Snyder said he has a "top candidate" for the manager post, but that he won't announce it until after the appeals period has passed. Snyder, a Republican, insisted the emergency manager is the best way to deal with the problems facing the city's operations. "The current system has not been working. We have not stopped the decline," he said.

Quote from Mr.Ritz : Why did the suburbs want control of the water?

Principally, distrust. The elected officials and customers in the surrounding counties and cities didn't trust that the city was properly administering this great resource and asset. And so they wanted to share in the control of it.

And it turns out that they were right. The City's mayors and council members have all been pawns of the unions...whether AFSCME and the SEIU who represented the City workers or the ATF who represented the City's teachers.

The City is a basket case primarily because the elected Democrats ran it into the ground using both the City government and schools as jobs programs.

It's a huge mess in Detroit. First the takeover and if that fails, bankruptcy. Sad state of affairs.