Motor City Files For Bankruptcy Amid $18.5 Billion In Debt

Motor City Files For Bankruptcy Amid $18.5 Billion In Debt

The City of Detroit filed this afternoon for Chapter 9 bankruptcy protection in federal court, laying the groundwork for a historic effort to bail out a city that is sinking under billions of dollars in debt and decades of mismanagement, population flight and loss of tax revenue.

The filing begins 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 bankruptcy petition would seek protection from creditors and unions who are renegotiating $18.5 billion in debt and other liabilities.

 


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TheSteveTheSteve - 7/18/2013 8:05:03 PM
+2 Boost
Well, you know the answer to ongoing mismanagement, colossal debt, and irrelevance? A huge government bailout. Translated into English: Borrow money on behalf of taxpayers, thereby shifting the debt from the City of Detroit to American citizens across the country.


Agent009Agent009 - 7/18/2013 9:37:38 PM
+1 Boost
The way of organized labor...demand so much that when a bump in the road happens make the public bail you out.

The American Way?


LexSucksLexSucks - 7/19/2013 1:29:36 PM
+2 Boost
The way of Wall St. Screw up so much that you have to have the tax payers bail you out. Why don't I ever hear you complaining about that?


thetruth01thetruth01 - 7/19/2013 1:37:33 PM
+2 Boost
Oh sure, it's all the unions fault. If your boss gave you a contract that said you were entitled to a certain compensation package, let's say 25% was due at the end fo the year. The time comes and they balk at paying. Should you just walk away and go somewhere else, or should you fight for what you were guaranteed? Civic employees that count on retirement benefits because they don't pay into Social Security deserve those benefits.
Why don't you examine the banks and other creditors who can absorb this kind of loss in a bankruptcy, instead of struggling working class folks who have worked their lives for a small pay-off at then end. Now that sounds like the American Way to me.


skytopskytop - 7/18/2013 9:59:01 PM
+1 Boost
No worry. obamma will just have the treasury print up another faux $18 billion dollars to "loan" to Deeetroit. Oh, did you know YOU will be on the hook to pay for obamma's financial folly? Or should I say your children and grand children will be paying for it.
Just wait until the progressive liberals take California over the cliff. Then you will really see dollar printing go into hyper speed mode. Your dollars are being watered down to near worthlessness by this faux pres.


LexSucksLexSucks - 7/19/2013 5:18:03 PM
+1 Boost
FOX Noise much?


thomasthomas - 7/20/2013 9:03:44 AM
+1 Boost
The first of many municipal bankruptcy I'm afraid. This is the second, much bigger shoe than the housing crisis to fall.

Illinois next?


MarryBMarryB - 7/22/2013 7:44:46 AM
+1 Boost
This is what our society used to endure! We have no choice but suffer from all changes our lawmakers do. We used to be worried about [url=http://northenloans.ca/blog/get-to-the-end-of-the-month/]how to dispose of money to the end of the month[/url] and forgot about normal way of living - without debt and borrowings. It looks like some kind of nature law: when someone loses, other earn. We have nothing to do with this.
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