Detroit on Fast Track to Bankruptcy

[G8trGr8t]

http://www.nbcnews.com/business/econ...ency-1C8638601

Governor Rick Snyder of Michigan on Friday declared a fiscal state of emergency in Detroit in a move that could lead to the appointment of a financial manager who could file for the largest municipal bankruptcy ever.

Snyder's decision allows the city a 10-day grace period to formulate a plan to fix its finances before the governor reconsiders appointing an emergency manager who would likely drastically reduce services.

After the hearing or the expiration of the 10 days in the case of no hearing, the governor confirms or revokes his determination. A confirmation will assign management of Detroit's fiscal emergency to a Local Emergency Financial Assistance Loan Board composed of three state officials, including the treasurer, who are all Snyder appointees. That board would also appoint a manager for the city, under the current state law.

Detroit officials also will have the ability to appeal the fiscal emergency determination in state court. But that move would likely not delay the appointment of a manager, who could ultimately recommend the city file for bankruptcy. A Chapter 9 municipal bankruptcy by Detroit would be the largest ever in the United States.

Detroit has faced the steepest population decline of any American city in recent decades. Once the fifth largest U.S. city that shone as the birthplace of the U.S. automotive industry and Motown music, it now ranks 18th with about 700,000 people - after suffering a 25 percent decline in population between 2000 and 2010.

Unions power combined with democratic corruption is going to turn it into a giant farm before it is done. Canary in coal mine for several other alrge democratic machine cities with overhelming pension obligations and total debt ticking away waiting to blow up the city's finances. Chicago...are you paying attention?

[gatordowneast]

Detroit has no ability to fix it's finances unless they hire a team of consultants which they cannot afford. They've had children running government for 30 years with allowances provided by the big 3 and when the big 3 cut the monthly stipend, Detroit government had no clue what to do.

[channingcrowderhungry]

You can only spend more than you take in for so long. Simple math. Hope people take note, but I doubt it.

[gatordowneast]

This is unbelievable and can't be possible , can it? A democratic, union dominated state, with a union dominated, democratically governed city going bankrupt? Unthinkable. And now the state finally elects a republican governor who must now appoint a financial custodian to straighten out the mess.

Chicago...you are next. Atlanta...without Roswell, this could have happened to you. Philly, you are on deck. LA, catch a glimpse of your future.

[Swampmaster]

the unions need to sue the state for big money to keep all these jobs, obscene pensions and benefits

[gatordowneast]

Originally Posted by Swampmaster

the unions need to sue the state for big money to keep all these jobs, obscene pensions and benefits

Sadly, many Michigan residents who realize the $hit dump they are in, cannot extract themselves as they can't sell their homes and vamoose.

[Juggernautz]

They're not the only major city in turmoil.

[gatordowneast]

Originally Posted by Juggernautz

They're not the only major city in turmoil.

Think of any with a pub as mayor?

[Dreamliner]

Originally Posted by gatordowneast

Think of any with a pub as mayor?

There are not many cities with pub mayors. But I take your point.

[brainstorm]

http://www.citymayors.com/mayors/us-mayors.html