Motor City Meltdown... Detroit files for Bankruptcy protection...

nooshinjohn

http://www.nbcnews.com/business/detroit-preps-file-bankruptcy-soon-friday-paper-says-6C10678946

UPDATED: Detroit has filed for Chapter 9 bankruptcy, according to the Associated Press and Reuters, becoming the biggest U.S. city in history to do so.

The home of the nation's resurgent auto industry has as much as $20 billion in debts and liabilities, dwarfing previous city and county filings.


Earlier Thursday, the Detroit Free Press, the city's hometown paper, said the filing would set off a 30- to 90-day period "that will determine whether the city is eligible for Chapter 9 protection and define how many claimants might compete for the limited settlement resources that Detroit has to offer."

The Detroit Free Press said Gov. Rick Snyder would need to sign off on the deal. It said his office did not return phone calls immediately for comment.

Did anyone NOT see this coming? I remember having a conversation with my Step-dad decades ago, and I remember telling him then that such a fate was the inevitable result of the road they were on. The sad part is that while it was obvious to so many what was happening, the people themselves were too blind to see it, and even today, most think the problems of Detroit are somebody else's fault and not their own...

Jhayman

Then they should wipe out the debt of all who live their as well especially the poor sectors, give them a chance to get their lives back on Track..
But that will never happen the Banks are to powerful and own EVERYTHING..

rpf65

I'll have to disagree with you Jhayman. The bans did nothing but buy debt, in the form of bonds. In other words they loaned the city money, that the city said it could and would pay back with interest for a specific purpose. The problem was that Detroit borrowed money for things they wanted, and not necessarily needed.

For instance hike and bike trails are nice, but not really necessary, as opposed to public safety. This city has been in decline for as long as I can remember. I went there in 1984, and after a few hours decided I would never return. It was a city beginning to die a slow death then. I witnessed small towns in "steel country" die about the same time, so this just took a little longer.

When a city decides to concentrate resources on politically connected people/organizations at the expense of their citizens, those that can leave will. Which is exactly what happened. People saw jobs going away as well as a decline in public safety and simply left. Because they simply saw the chance of something they felt was better, they left. This is what will happen to other cities.

If people don't feel safe, they leave. Nobody can fault them.

Detroit won't be the last city to face the new reality that there is only so much money.

tonyb

Jhayman wrote: »

Then they should wipe out the debt of all who live their as well especially the poor sectors, give them a chance to get their lives back on Track..
But that will never happen the Banks are to powerful and own EVERYTHING..

Well chief, the poor who are debt ridden can file bankruptcy just as well as the city can. Nothing to stop them from doing so. Detroit is the poster child for many cities, keep spending more than you take in and this is the outcome. Good thing is maybe they can get out from under some of these union contracts which will help.

When 1 out of every 3 people is on some form of government hand out, and all you hear is how well the economy is doing, I often wonder what planet these big mouths live on. After all, wasn't it right after the auto bailouts we heard how well Detroit was doing and that it was turning around ? They all padded themselves on the back, they "saved" Detroit. If this is their idea of "saved", then please stay away from my city.

tonyb

Well, as would be predictable, the pension funds are suing to block the bankruptcy and the city has asked the feds for a taxpayer funded bailout. Who would have thunk it.

Drenis

How the hell does a city go broke with three major automakers generating revenue?

Obviously there must be more to this but I read this and felt a little shocked.

Inspector 24

Jhayman

You mean he's Real...

polrbehr

I am wondering if NY (city and/or state?) is far behind... 3+ months after filing, and I still have not received my state tax refund :evil:

maximillian

The solar industry is awful. Government subsidies dried up and the whole industry is hurting. My company opened a new production plant in NM for 3000 people. Now the entire business unit (3 global regions) was shut down.

tonyb

Lasareath wrote: »

Let them build solar panels!

LOL Sal, I love ya bro but that's a sure fire way to go back into bankruptcy. Have you not seen the number of solar companies closing shop let alone our taxpayer money flushed down the drain ?

Waiting for a tax refund ? Sad that they can use your money interest free for as long as they want but god help you if your late on a bill to the state.

badchad

I like that show about the Pawn shop in Detroit called "Hardcore Pawn".

In my mind, that's how I imagine all the residents of Detroit.

polrbehr

tonyb wrote: »

Waiting for a tax refund ? Sad that they can use your money interest free for as long as they want but god help you if your late on a bill to the state.

It gets worse. I was told by customer service yesterday that the delays have been caused by a "new subcontractor" they used this year (uh, OK), and that I should call them back (and spend 1/2 hour trying to get a live person) in 6 - 8 weeks (from now??) if I don't receive it by then. Yup, he said September.
And while I did not file electronically, the refund should be direct deposited, so that should take potential USPS error out of the equation.
Good thing we are not talking about a huge amount of money here : (

cnh

Lasareath wrote: »

Let them build solar panels!

Let's create our own SUN then we can SELL solar to the ENTIRE WORLD and oil will become a JOKE! lol

On a more serious note, don't you guys have ANY GOOD NEWS to REPORT?

Enough of gloom and doom. Something "good" has to be happening "somewhere".

cnh

nooshinjohn

cnh wrote: »

On a more serious note, don't you guys have ANY GOOD NEWS to REPORT?

Enough of gloom and doom. Something "good" has to be happening "somewhere".

cnh

Cheezy got banned again... does that count as good news?

Msabot1

Panic in detriot.....good bowie tune!!!!!

sucks2beme

Drenis wrote: »

How the hell does a city go broke with three major automakers generating revenue?

Obviously there must be more to this but I read this and felt a little shocked.

The big three really don't have much in Detroit any more. Or even in Michigan.
Nissan has 50% more U.S. built parts in their cars than GM does. Much of the parts
business for them moved to Mexico and Brazil. Bottom line, when everything you can think
of is made somewhere else, the money follows it. A factory effects everything around it.
You close one, and everything around it suffers, UPS and Fedex lose business, shops,
food joints, other small businesses that support it all go under. And the tax base collapses.
Manufacturing creates wealth. When we offshore it, the wealth gets generated somewhere else.
And the people move on to where they can make a living, leaving only the people too
poor to move behind. Detroit is now almost a 3rd world country.

tonyb

Good points ^^^.

When we gave the auto makers our money, there was no stipulation it had to be spent in Detroit....or Michigan for that matter. Some even opened factories in China and Europe while also upgrading facilities elsewhere, even in Mexico. In other words, they spent it everywhere but Detroit. The rhetoric always sounds good but reality puts it into perspective. We as a nation don't live in reality anymore.

Now a judge told Detroit they had to withdraw their Bankruptcy for a few reasons, one of which the judge claims is " it doesn't honor the presidents bailout of Detroit's automakers ". Since when does that have a place at the table of law ?

CNH wanted some good news for a change, I agree too. We need something good in the news to report so I searched.....and searched more. I couldn't find squat, everything was bad news on numerous outlets. I found one I thought was good news, but really is bad.

Colorado has a small city that wants to grant hunting licenses for.....Drones. On the surface it sounds like good news, who likes drones anyway, right ? Then I thought, a bunch of yahoo's shooting in the air ? What goes up must come down, who knows where those bullets will land. Let alone any of these yahoo's actually hit one, and the drone crashes into a school or office building. Bad news.

The last good news story I can recall is the girl who needed the lung transplant which caught national attention. I'm starting to wonder if the "cause and effect" principles are being applied in the news world. To have a desired effect, one needs to project a cause. Wonder what that would be.....hmmm.

txcoastal1

tonyb wrote: »

Good points ^^^.
Some even opened factories in China and Europe while also upgrading facilities elsewhere, even in Mexico. In other words, they spent it everywhere but Detroit. The rhetoric always sounds good but reality puts it into perspective. We as a nation don't live in reality anymore.

....But why did they shut down and move facilities?
Since the beginning of the industrial revolution people were treated badly and worked in poor conditions. Then the people stood up against them and Unions were formed. Which in turn also became a double edged sword. Then taxes, regulations, and the turnover of benefits became their demise which made them flee to sources where they got their start.

Unfortunately no one can can come to a truly happy medium because its all driven by greed from one side or the other.

A vicious cycle of a civil war of the "have's and have not's"

zane77

Hoku built a plant here to make silicon for solar panels, spent millions building a new facility and running major power lines and substation for it. They got the plant all built and everything ready to go and then the bottom fell out of the solar market. This new plant is totally shut down and the never made any product and the stock is now at .01. So that is not going to get any jobs for anyone

Dominion

http://www.weather.com/travel/modern-ruins-abandoned-detroit-photos-20130715

obieone

tonyb

txcoastal1 wrote: »

....But why did they shut down and move facilities?
Since the beginning of the industrial revolution people were treated badly and worked in poor conditions. Then the people stood up against them and Unions were formed. Which in turn also became a double edged sword. Then taxes, regulations, and the turnover of benefits became their demise which made them flee to sources where they got their start.

Unfortunately no one can can come to a truly happy medium because its all driven by greed from one side or the other.

A vicious cycle of a civil war of the "have's and have not's"

Yes and no pal.

Unions definitely had their place and still do to some extent for obvious reasons. Somewhere along the line however the train went off the rails when their hands reached deep into the public pool of money and laws were created by them and for them. This public money afforded them gets recycled into political donations thus a never ending cycle of cronyism and drain on the public trough.

The have's and have not's debate is evident in everything. That can spin into numerous side debates too. Not sure we should travel down that road. :biggrin:

Polkersince85

The native American tribal councils had a creed of making their decisions based on how it will affect the seventh generation forward. Wise method of decision making, IMO.

nooshinjohn

Polkersince85 wrote: »

The native American tribal councils had a creed of making their decisions based on how it will affect the seventh generation forward. Wise method of decision making, IMO.

So THAT"S how they cane to the decision to sell the Isle of Manhattan for 20 bucks worth of baubles and trinkets... worked out well, didn't it?:rolleyes::cheesygrin::cool:

ZLTFUL

In a recent press conference, President Obama remarked, "If I had a city, it would look just like Detroit."

Phasewolf

You can't build new stuff in the D without having armed guards to protect it night and day. The people made it what it is today and now have the city they deserve.

What do you except in a city where the dead vote more often then the liven.

The only thing they have to export is crime and corruption we have plenty of both. There is nothing in the city that makes me want to spend my money there or risk my family's safety going there.

They are really getting good at killing, selling drugs and raping elderly people that can't afford to leave so I guess there is some hope right?

On a other note Flint and Pontiac will not be far behind.

It seems like ever time I pickup a paper there is several murders or stories like someone walking out of a store and getting shot in the face.

And why would anyone in there right mind move there when it takes a hour+ for the police to show up if they do at all.

Thanks but I think I will pass.

F1nut

ZLTFUL wrote: »

In a recent press conference, President Obama remarked, "If I had a city, it would look just like Detroit."

Classic!!!

Phasewolf

What's there not to like it is Michigan's largest outdoor shooting range and for people who want more of a challenge some of the targets shoot back.

Polkie2009

Phasewolf wrote: »

You can't build new stuff in the D without having armed guards to protect it night and day. The people made it what it is today and now have the city they deserve.

What do you except in a city where the dead vote more often then the liven.

The only thing they have to export is crime and corruption we have plenty of both. There is nothing in the city that makes me want to spend my money there or risk my family's safety going there.

They are really getting good at killing, selling drugs and raping elderly people that can't afford to leave so I guess there is some hope right?

On a other note Flint and Pontiac will not be far behind.

It seems like ever time I pickup a paper there is several murders or stories like someone walking out of a store and getting shot in the face.

And why would anyone in there right mind move there when it takes a hour+ for the police to show up if they do at all.

Thanks but I think I will pass.

Always seems like on Hardcore Pawn, there's an abundance of ignorant, uneducated people coming in to pawn something, some barely speak proper English.:rolleyes: God help Schwartz Creek, they are right near Flint.

BlueFox

Phasewolf wrote: »

What's there not to like it is Michigan's largest outdoor shooting range and for people who want more of a challenge some of the targets shoot back.

Sounds like just the place for Ted Nugent.