Detroit files for Chapter 9 bankruptcy [UPDATED: Detroit is Eligible]

Well it happened !!

Detroit has officially filed bankruptcy.

It's the largest municipal bankruptcy case in U.S. history on top of it.

Oh well.

Detroit—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.

Gov. Rick Snyder’s office was making plans this afternoon to hold a Friday morning news conference at the Maccabees Building, 5057 Woodward in Midtown, according to a source. It’s the same location where the governor declared a financial emergency for Detroit on March 1.

Detroit files for Chapter 9 bankruptcy


Now let's see who got all the money

and who gets the new money

and who gets screwed the worst !!



UPDATE
www.abovetopsecret.com...

Just made the exact same post in other current events. Ya beat me to it.

And just to show you how absurd these rating bureau's are "Detroit Files Chapter 9 Bankruptcy As Moody's Raises US Outlook"
This is just terrible news

Originally posted by Senduko
Just made the exact same post in other current events. Ya beat me to it.

This is just terrible news

Just saw yours !!!

We posted at the exact time it looks like

Yep it's bad and there may be more cities to follow.

reply to post by Senduko


I think it's great news.

Bankruptcy is designed to help. Obviously what they were doing wasn't working. I just hope the people who drove the bus off the cliff get the boot so D-town doesn't end up right back in the same situation in 10 years.

reply to post by xuenchen


Yeah.. Tenth was so kind to remind me i was 30 seconds to late lol.

But doesn't matter, So what happens next? Marshall Law?

reply to post by xuenchen


Well something is for sure, that will be another city in the long list of them that will not be able to implement Obamacare due to budget cuts, austerity and bankruptcy.

Bullish for OCP and Dick Jones

Senduko
reply to post by xuenchen

 

Yeah.. Tenth was so kind to remind me i was 30 seconds to late lol.

But doesn't matter, So what happens next? Marshall Law?

I'm feeling cheeky today

Hmm I'm not familiar with bankruptcies for cities, how the hell does that work?

~Tenth

reply to post by xuenchen

The federal government is no less bankrupt.

Only difference being that they allowed the creation of a private bank deceptively named the "Federal Reserve" which allows them to keep spending money they dont have.

reply to post by tothetenthpower


Ha no worries, your just doing your job .

But indeed how does that even work, better yet how is that even possible? Did the government stop giving support to the city or what?

I would think the renegotiation for all the union contracts will be hit the hardest.

Being as I live here I am a little concerned as how this will effect "first responders"


edit - over the last two years I have witnessed a decline in public services (sanitation and transport especially). Closing and consolidation of police/fire stations, closing/consolidation of schools, reduction in bus routes, reduction in trash collection, and a huge increase in border patrol are just a few of the obvious changes.

200Plus

I would think the renegotiation for all the union contracts will be hit the hardest.

Being as I live here I am a little concerned as how this will effect "first responders"

I know some people who have pensions from the city, they have no idea what's going to happen with them. I'm sure there are thousands of retired pensioners who rely on that as their only source of income.

They better do right by them or I suspect protests.

~Tenth

Looks like progressive politics is a rousing economic success... Detroit has been run by the progressives and labor unions for a very long time. Look to them to restore hope and change in the Motor City...

Man, my sarcasm meter is pegged today...

reply to post by tothetenthpower


Well in my neck of the woods most of the money that is used for the cities come from loans on local banks, see even when the cities or states gets tax payer money just like the Federal government they have gotten into so much debt that the tax payer revenue goes to pay for the interest yearly, so the banks are actually making a killing with the cities budgets woes.

So when a Bankruptcy happens on a city I wonder now, if the Federal government step in and pays for the debt to the banks so they don't lose the money, or if the banks can go after the taxes the city of state gets.

I will not be surprise if this is the way it works.

I lived right outside of Detroit for quite some time, I't is hard for me to remember reasons to leave the City even standing. I know that they had built Casinos there since I left but even that couldn't save the financial ruin that Detroit has become although it was never that far off anyway in recent years.

The city looks like a war zone, literally. All but a tiny downtown section is boarded up, dilapidated and racked with violent crime in every shape and form. It was getting so bad that even before I left 15 years ago, it was quite scary to try and make it too a Tigers or Red Wings game.

All this and right over the river is the magnificent, clean and prosperous city of Windsor. Those two cities mirror the conditions of Earth and Venus, one a lush vibrant paradise and the other a glimpse of simmering hell and despair. I still remember the first time I drove into Chicago, I couldn't believe a city could look that way, I'll never forget.

Here's some legal outlines on Chapter 9's....

Chapter 9


I seem to remember some things about State takeovers being said before as this was unfolding in older threads.


and one more link Municipal Bankruptcy: An Overview for Local Officials

Municipal BK's have been happening recently.

And the best part of this was this

And in an example of absolutely sublime timing, Uncle Warren's Moody's just hiked its oulook on the US from negative to stable. It is unclear if the opinion included the following line: "AAA+++ utopia; would gladly accept more bribes from any time", but it contained the following piece de resistance:

MOODY'S: U.S. Aaa SUPPORTED BY SECURE STATUS OF U.S. DOLLARS
One can't make this stuf up.

reply to post by Helious


I was in Windsor a few months back, the difference is startling.

~Tenth

Originally posted by tothetenthpower
reply to post by Helious

 

I was in Windsor a few months back, the difference is startling.

~Tenth

Yes, it is quite shocking. The drinking age in Canada is 19 so we used to make weekend trips straight through the heart of Detroit to go over the bridge to Windsor and you would get scolded if police seen you stopped at traffic lights if there was no conflicting traffic, they encouraged you to go through them and not to stop at red lights if it was clear, that's how dangerous it was. In Windsor you could walk around at any time of night without much worry.

Windsor remains one of the least homicidal communities in the country, says Statistics Canada — while just across the border, Detroit continues to earn its dubious title of the most dangerous city in the U.S.

This article says there was only 1 murder in Windsor in all of 2011, pretty safe if you ask me.

Funny reminiscing about those days that weren't so long ago, you didn't need a passport to go across the border, just an ID and a smile, life was a lot simpler before the patriot act I guess............

reply to post by xuenchen


The poor people of Detroit who are stuck there. Bankruptcy means there may be no services we are all used to, such as:

-Trash pick up
-Emergency response like police, fire, and medical
-Road maintenance like potholes filled, red lights operating properly, road signs in place and displaying correct information, and street sweeping/cleaning
-Public transportation, the poorest generally rely on buses the most