Detroit has no more money. [Officially Bankrupt]

Caporegime
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http://www.bbc.co.uk/news/world-us-canada-23369573

BBC News said:
The US city of Detroit in Michigan has become the largest American city ever to file for bankruptcy, with debts of at least $15bn (£10bn).

I suppose the corruption and such has finally brought it to its knees.

Could we see an Eurozone style bailout fund for deprecated US cities?

Funnily enough as the analysis says, business is actually picking up in the city, I wonder if the Fed will just sell the city to whoever wants it... :p

(Also i do realise posting this at almost 2AM is not conducive to any thread)
 
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Associate
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their failure brought banks to its knees and although the banks were wrong the city was also to blame..

our own banks which are connected to americas also fell..

because of that our government push the poor into the ground..

this directly affects me and ive personally never been in trouble with money so why should i and thousands of others have to pay for their mistakes ?
 
Caporegime
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their failure brought banks to its knees and although the banks were wrong the city was also to blame..

our own banks which are connected to americas also fell..

because of that our government push the poor into the ground..

this directly affects me and ive personally never been in trouble with money so why should i and thousands of others have to pay for their mistakes ?

Are you responding to the correct thread? This is about far more than the GFC in 2007.

The Guardian said:
Snyder said he hoped the bankruptcy would be the beginning of the end of Detroit's woes. "This decision comes in the wake of 60 years of decline in the city, a period in which reality was often ignored. I know that many will see this as a low point in the city's history. If so, I think it will also be the foundation of the city's future," he wrote.

The governor painted a picture of a city in collapse. Citizens wait 58 minutes for the police to respond to calls, compared to a national average of 11 minutes. Only a third of ambulances were in service in the first quarter of 2013. There are approximately 78,000 abandoned buildings in the city. The unemployment rate had nearly tripled since 2000 and the homicide rate was at its highest level in 40 years, he said. Detroit is unable to meet its most basic obligations to its residents, let alone its creditors.

This is utterly staggering.
 
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Decline of Detroit began after the riots of 1967 which resulted in many being killed and hundreds of homes and businesses being burnt down. In the last half of 1967 following the riot the white exodus was 67 thousand. In 1968 it was 80 thousand, 1969 it was 46 thousand.

Wow I had no idea so many moved out in such a short period of time that's crazy.

 
Soldato
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It's hardly an isolated event, it's just the largest so far.

8 US cities have gone bankrupt since 2010 with an additional 28 utilities, water districts, hospital authorities, and other municipal units going bankrupt in the wake of the financial crisis.

Glad to see everything working so well in the land of the free market economy ;)
 
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It's hardly an isolated event, it's just the largest so far.

8 US cities have gone bankrupt since 2010 with an additional 28 utilities, water districts, hospital authorities, and other municipal units going bankrupt in the wake of the financial crisis.

Glad to see everything working so well in the land of the free market economy ;)

Nothing to do with free markets. They're in trouble for the same reason countries are - they borrowed far above the revenue income that they can collect from citizens - the more residents leave, the less money there is to run the city.

It should be illegal for all public entities to borrow money unless for budgeted capital investment. Running a continuous defecit simply passes your debt onto your children ad infinitum.


As to Detroit, it was nothing before the car industry started there and the decline of the US car industry (which could be argued was hastened by the highly unionised workforce resisting automation and efficiency changes) pretty much meant that Detroit was doomed unless significant investment or incentive was made for other industries.


Really sad, but it's been pretty much inevitable for 40 years that this was going to happen, the economic crash just drove (no pun intended!) the final nail in the coffin.
 
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It's all the white people's fault, they got into one little riot and their Mom got scared, Obama should double their taxes to pay for it all :p

I'd expect America to have zero interest in bailing out a city with a significant minority population, which puts Obama in an awkward position.
 
Soldato
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Nothing to do with free markets. They're in trouble for the same reason countries are - they borrowed far above the revenue income that they can collect from citizens - the more residents leave, the less money there is to run the city.

It should be illegal for all public entities to borrow money unless for budgeted capital investment. Running a continuous defecit simply passes your debt onto your children ad infinitum.


As to Detroit, it was nothing before the car industry started there and the decline of the US car industry (which could be argued was hastened by the highly unionised workforce resisting automation and efficiency changes) pretty much meant that Detroit was doomed unless significant investment or incentive was made for other industries.


Really sad, but it's been pretty much inevitable for 40 years that this was going to happen, the economic crash just drove (no pun intended!) the final nail in the coffin.

The Unions probably haven't helped, but i'd say its more down to the fact that they make stupid cars, that even the americans are moving away from, for far too long the US car industry adhered to the model of massive and inefficient engine sizes, which crippled their ability to market abroard, while the Japanese and European manufacturers have moved in with more efficent and largely better cars, and even the consumer loyalty of Americans can only bear so much, and with gas prices relatively high (for the US, still dirt cheap by our standards) having a 7 litre engine that only makes as much BHP as a 2.0 litre engine of a euro/jap car is over and the big US car makers (at least domestically) have been far too slow to adjust, which is poor management at the top level and little to do with unions. There was a time where people the world over dreamed of having Mustangs, Dodge Chargers or Challengers etc, that is no more.

The US will bail detroit out as they did the big car companies a few years ago as they are too big and too useful to die, and even the yanks understand sometimes you have to subsidise your industry to prevent it from dying as once it's gone it's gone and you are at the mercy of foreign companies, and thats a real pain in the arse as you have to beg the French, Germans or Japanese to build your new Nuclear reactors because someone decided not to support industry in your own country when it hit a bad patch.
 
Caporegime
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Decline of Detroit began after the riots of 1967 which resulted in many being killed and hundreds of homes and businesses being burnt down. In the last half of 1967 following the riot the white exodus was 67 thousand. In 1968 it was 80 thousand, 1969 it was 46 thousand.

Wow I had no idea so many moved out in such a short period of time that's crazy.

[youtube/]2kfI1XVQe7I[/youtube]

wow that could be one gorgeous city if it was looked after. :)
 
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