Biggest city to ever do this and is exactly where our entire country is headed

 

http://m.usatoday.com/article/news/2552819

 

Many cities and even some states will file for bankruptcy

This will wipe their pension obligations

Do you think that the young kids are going to be stupid enough to pay

For all the promises our politicians have made?

I bet there are a few other big cities watching this very closely,,this will end up being a blueprint.

Cough Philly, cough Chicago,

Oh and Atlantic city

Its funny/sad because almost all of their bonds were all insured by companies that have come out of bankrupty in the last 4-6 months.

 

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Cough New Jersey...

Oh boy. Is Christie going to use this to beat the hell out of Govt employees come negotiating time

California is next then us!

Expect federal government to jump in and stop it. Otherwise this becomes the model for so many places and they can't afford that image.

It's gonna be a domino effect.

 

Btw how many people are gonna lose pensions?

Expect federal government to jump in and stop it. Otherwise this becomes the model for so many places and they can't afford that image.

Only the congress can raise money though taxes. They must originate there.Aint going to happen

Don't the Feds have a pension protection plan? Don't worry Detroit public employees. We'll pay for your city's fiscal criminal negligence!

Only covers private pensions. They're screwed.

http://m.pbgc.gov/index.html

Only the congress can raise money though taxes. They must originate there.Aint going to happen

Hahahahaha ... Hahahahah... good one .. oh wait. You were being serious?

 

You mean like all the bail outs that were spent exactly not like the laws said? Or the constant shifting of funds from one pocket to the other?

 

Hell I wouldn't be shocked at this point if the Federal Reserve announces a QE4 (or is it 5, I've lost track) in which it will purchase Detroit debt and Detroit debt only.

 

I always get a laugh when I encounter the quaint notion that we are still a nation of laws where we care about constitutions and such. 

Expect federal government to jump in and stop it. Otherwise this becomes the model for so many places and they can't afford that image.

The us government is bankrupt they just keep printing more money ... Expect the dollar the fall within a year

The us government is bankrupt they just keep printing more money ... Expect the dollar the fall within a year

Well eventually, I don't think it will be that soon. First there is that whole least dirty shirt we have going for us, and secondly they'll take more and more bizarre measure to drag it on as long as possible.

Sell the shitehole to Ontario.

They need more dump space anyway.

Ha , what a coincidence , Detroit has been under Democratic control since the 60s !!!!!!

This is where OCP steps in and buys them. Robocop was actually a glimpse into the future lol.

There are some very positive things that would come from a devaluation of the US dollar. Exports would become more attractive and domestic manufacturing would have a better time competin here at home. Over time we would have a way to bring back some of the manufacturing we have lost over the last 25 years.

 

Of course the Chinese will play their usual tricks with no consequence...so probably not.

"The problem with socialism is that eventually you run out of other people's money to spend."  Margert thatcher

Interesting.

 

I'm still pissed Chrysler got bought out and then sold to Fiat. Really? At least GM, as much as I hate them, didn't get sold to Toyota or something.

A state can NOT declare Bankruptcy!

Detroit will be "too big to fail".  This is another opportunity to inject brand new money into the economy - which was the real purpose of the TARP bail outs.  Dump a few billion in newly minted bills into Detroit and suddenly Detroit has more money to spend then it knows what to do with.  They buy new vehicles for the roads dept, new desks for offices, the get the elevators fixed, and add office staff.   Detroit's economy temporarily takes an upturn.  The president declares himself savior. Your dollar becomes worth even less.  The Fed continues to purchase mortgages and bonds as fast as they can to (1) inject even more money into the economy while (2) temporarily and artificially keeping stock market prices high by buying up all of the available mortgages and bonds (creating scarcity of investments - what the Fed cryptically calls "Quantitative Easing").

 

All they have to do is keep this teetering country from tipping over until after the next election.  I'm not sure they can do it.  

Public pensions should be abolished, let them invest part of their paycheck privately like everyone else, and sick days, use it or lose it, like everyone else, unless of course we want to end up like Greece, or worse.

A state can NOT declare Bankruptcy!

 

But it can sure default on its debts, and what exactly do you do about it except sue them?

Obama refused to let Detroit go bankrupt .. Guess that did not work to well for him..

 

https://www.youtube.com/watch?feature=player_embedded&v=V6Su5mjQSaE

"The problem with socialism is that eventually you run out of other people's money to spend."  Margert thatcher

+1

Obama refused to let Detroit go bankrupt .. Guess that did not work to well for him..

 

It worked great for him. It helped him get reelected. You didn't think he really cared did you? He just postponed the collapse