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

reply to post by DontTreadOnMe


Out of all of this, I'm a native Michigander and I'm pretty upset with the way the pensioners are going to get treated. I know plenty of older citizens who worked for the city in various capacities and messing with their pensions just isn't right. I know the city needs to get back on it's feet but screwing over the elderly who WORKED for their pension...come on... There are a couple who are scamming the system but what about those who worked for to earn their pension? So we are going to cut their checks? It just seems heartless at the end of the day.

reply to post by ltheghost


I can't disagree with what you're saying.
There has been no public announcement as to what will happen.
And it's far from over.

AFSCME and the funds are appealing...saying in part that the pension is a property and not a contractual right.....
www.detroitnews.com...

The Pension Funds themselves are trying to calm the retirees...as the funds are far from broke.

Pension officials said the market value of the retirement funds is not in danger despite a judge’s ruling Tuesday that Detroit is eligible for bankruptcy and that pensions can be impaired to restructure the city’s debt.

“There are people out there that are panicking and we do not want that panic,” said Michael VanOverbeke, general counsel for the General Retirement System. “

From The Detroit News: www.detroitnews.com...

From what I have gathered, any cuts would involve ONLY monies owed to the Fund...not the balances already there...not sure how reliable this article is, or if they are jsut trying to sell papers.
www.freep.com...

Realtruth
This is by far the best thing that could happen to Detroit, let me explain.

I have lived here all my life and have seen Detroit when it was still a viable city, and right through the corrupt Coleman young years, then onto his corrupt criminal successor Kwame Kilpatrick.

The city is currently under massive renovations and billionaires from Michigan and many other states are buying up every building and vacant surrounding land. Billionaires Dan Gilbert, Mike Illich owner of Little Caesars and many more have been buying up land and putting literally billions in to the city.

online.wsj.com...


The reason this bankruptcy is great is the fact the State of Michigan will have to step in and take over, then they can clean house, put in people that are competent and surgically remove all corrupt administrators. Detroit has been bled dry for years by the uselss trash that has been in charge of the city, so it's about time that we see a new beginning because it has been on a downward spiral since the riots of the late 60's.

Time will tell, but Detroit only has an upward climb at this point.

Peace Out,

RT

P.S. I have traveled the entire world for many years, and I still love Michigan and the Detroit area.

edit on 19-7-2013 by Realtruth because: (no reason given)

Couldn't have said it better! Integrity and Competence are key.

I think they should do just like any corporation that goes bankrupt and break up the city of Detroit and sell all the city property.
They also should fire all the city leaders and allow all the parts of Detroit to elect all new leaders after the breakup.

Any areas that are left over after the breakup and not claimed by any new city's should be put under federal control including federal police control.

Any criminal caught in these federal zones should never be allowed to returned.

After a few years the criminals will be gone from the federal zones and they will become descent places to live.

Front page of the freep today:

Some sort of plan is in the works to spin off the DIA and make it a non-profit....it would give it something it hasn't had for more than 30 years: financial stability.
If it works, it sounds like a win-win for the DIA, and retirees.

The proposal would save the DIA’s irreplaceable treasures from creditors seeking billions of dollars from the bankrupt city. The goal is to ensure that the museum never again falls prey to the city’s financial woes or politics.

The proposal in one swoop could help solve two of the most vexing and controversial problems in the bankruptcy — paintings and pensions —and pave the way to a speedier resolution of the bankruptcy

www.freep.com...

reply to post by DontTreadOnMe


It should already be like that..... The whole Metro Detroit Area, 3 Counties of Detroit and it's Suburbs support the DIA with property tax dollars. The City owned part of the DIA Collection is a relatively small part of the collection. Ways will have to be found to use those assets in a way that helps the City get out from under this mess.

Spinning off the vast majority of the DIA to protect it sound's like a no brainer. Of course some City Leaders will probably think that it (The DIA) is "theirs" and whine about it being taken by "them".

You know that whole speech is coming. It's a given in Detroit.