Detroit is about to run out of cash.
 

http://www.businessweek.com/ap/20...n-december

http://www.wxyz.com/dpp/news/regi...-not-found



Detroit's financial condition is rapidly deteriorating, and City Hall could run out of cash in December, an official told a state oversight board Monday.

The city must find new revenue sources, he said, blaming the worsening outlook on rising medical expenses and lower receipts from taxes and other revenue sources than the city had previously projected.





Time to Let Detroit Go Bankrupt.

Should have blamed union thugs as well.


:iagree:

That would be racist.

Time to call Slim Shady, yo.

This slow motion train wreck has been happening for years.

Couldn't happen to a nicer city.

Detroit is getting the city that they voted for.

70% of Detroit homicides go unsolved..... http://www.time.com/time/specials...92,00.html

They could probably use the money.

Basically, if you kill someone in Detroit and have a brain, odds are definitely in your favor that you can get away with it.

Urban Wasteland Becomes Dumping Ground For Bodies [foxnews.com]

Maybe Detroit could charge a tipping fee to shore up their budget?

Since we are posting about all the things that make Detroit such a swell city, how about it's grocery chain landscape (or lack thereof [cnn.com])

It's the result of black rule.

Wow..

He must be thrilled over Obama winning the election.

We were recently in Detroit - earlier in the year. Watching the news at the hotel, we learned that Detroit had been setting up local police hubs (more like bunkers) in the worst areas of town. When you had an emergency, you could make your way to the bunker and find a police detachment there. Due to budget constraints, Detroit police were closing all the police hubs and installing land line phones so you could call in a crisis. The remaining police stations would have regular business hours and close at 4pm.

The clock is ticking....

http://mobile.reuters.com/article...0?irpc=932

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.

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?

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

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
"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

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]

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.

It seems some of you find joy in the failings of this American city. I think its just sad.

There is no joy in failure, but there IS joy in the lessons LEARNED from failure.

If nothing else, other cities and their citizens may just possibly learn *something* from Detroit's screw ups and change their ways before they get in the same situation.

Detroit didnt kill itself off due to a natural disaster or some unforeseen circumstances, anybody with half a brain could see what was happening, just that the people in power and the citizens that kept voting them in, were almost brainless (or brilliant in figuring out ways to line their pockets at everybody else's expense).

Half of Detroit property owners don't pay taxes [detroitnews.com]

coming soon to other socialist-run cities and counties near you...sooner or later those who DO pay realize they are the suckers, and decide to jump on the bandwagon...the classic example of killing the golden goose.

On a side note, funny how that 47% number keeps turning up, no?

fark 47% delinquency! no wonder they have revenue issues. On the flip side, if they actually tried to collect - what recourse do they have? foreclosure? :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

It is sad. This was a preventable disaster. I worked for the City government back in the 90s. We saw the problem then with dropping property values and out-of-control union contracts.

It's unlikely that other cities that went the way of Detroit will learn anything.

Our only hope is that those who actually do pay taxes around the country, will tire of having their money used to pay for others excesses.

I do :)

Detroit's biggest problem isn't the city. It's the people, and not just the politicians. They dug their own graves, and now their social issues are overflowing to the entire state. We're even starting to see some of these issues popping up in eastern Ohio... When a city gets a reputation as a criminal's paradise, you can't stop the influx of criminals, and that is the city's biggest problem: a prevailing notion, even among the authorities, that criminal activity is okie dokie, long as you get your kickbacks/tributes/whatever your stake in the bargain is. It is funny, too, because so much of Detroit's population is wrapped up in this that you can't help but snicker at the fact that those same people don't care. Oh, but of course, it's also sad for the few unfortunately decent folk who happen to live in Detroit that are caught in the middle. What's the option to help them, though? Subsidize a move for them?

Pretty good summary.

http://www.nytimes.com/2013/03/12...=all&_r=1&

You know it's bad when even the NYT gives up on you. ; )

City of Detroit is financially 'insolvent'
[cnn.com]

Ironically, if you've exhausted your ability to borrow, you're well beyond insolvency.

Uh, many are already there, including several states. Democratic political machines + unions = fiscal disaster just as we are seeing in Detroit and in Illinois.

Bing's finally leaving the game:

"After a tumultuous four years overseeing a city long riddled with blight, corruption, crime, and historic financial issues, mayor David Bing has had enough, telling a stunned audience at the Charles H. Wright Museum of African-American History Tuesday that he’d leave when his term ends in December."

http://news.yahoo.com/detroit-may...00228.html

"The city’s deficit, said Orr—a bankruptcy expert who represented Chrysler in its 2009 filing—could be as much as $600 million and its long-outstanding debts more than $16 billion. "

$16 billion in debt... that's for the entire state of Michigan and not just Detroit, right? ...oh.

The sky is the limit if you overpromise benefits to the public sector

I suppose a major US city would be considered "too big to fail", right?

It likely depends on the administration in power at the time ;)

Let's hope not.

I wonder how much money it would take to save Detroit anyway. The probable answer is "too much" or "money alone can't save Detroit."

Take a look at Detroit and comparably sized cities like Charlotte and how much they spend on things like police pensions.

That's not even it.

Look at places that have ran itself into the ground: lots of municipalities in CA/the entire State of CA, Detroit, etc.

Spending into oblivion and then just borrowing the hella outta everything because people view gov debt as near riskless.