Detroit's True Debt

**Tig3rzhark** · January-16-12, 09:40 PM

We all know that Detroit's in big trouble.

With Detroit still in wonderland, here is how deep the rabbit hole goes...

17-20 BILLION!!!

Interest included.

http://youtu.be/7j9QxyjoOnE

**Zacha341** · January-16-12, 09:43 PM

Not surprising if true. Recall all the audits that could not be processed under Kilpartrick administration...

http://www.wxyz.com/dpp/news/region/...-at-20-billion

**coracle** · January-16-12, 09:57 PM

Have no fear; Sharpton's here. He knows exactly how not to do it.

Coaccession · January-16-12, 10:55 PM

Originally Posted by Tig3rzhark

We all know that Detroit's in big trouble.

With Detroit still in wonderland, here is how deep the rabbit hole goes...

17-20 BILLION!!!

Interest included.

http://youtu.be/7j9QxyjoOnE

Crain's Nancy Kaffer has CRC's Bettie Buss noting that Detroit's collections are eligible for sale under an EFM. I wonder if Bettie will be able to get a good number for Detroit's most valuable asset -- its DIA art collection. With $20 billion dollars in debt, Detroit's net worth might be less than zero -- but I seriously doubt it. 60,000+ museum-quality objects has got to sum to a pretty significant height. If I had to guesstimate, I'd say $60 billion dollars of total assets, DIA included, leaving Detroit with only a net worth of $40 billion. Fortunately, I don't have to guesstimate. Bettie Buss is the one who's talking numbers.

**Tig3rzhark** · January-16-12, 11:23 PM

Originally Posted by Coaccession

Crain's Nancy Kaffer has CRC's Bettie Buss noting that Detroit's collections are eligible for sale under an EFM. I wonder if Bettie will be able to get a good number for Detroit's most valuable asset -- its DIA art collection. With $20 billion dollars in debt, Detroit's net worth might be less than zero -- but I seriously doubt it. 60,000+ museum-quality objects has got to sum to a pretty significant height. If I had to guesstimate, I'd say $60 billion dollars of total assets, DIA included, leaving Detroit with only a net worth of $40 billion. Fortunately, I don't have to guesstimate. Bettie Buss is the one who's talking numbers.

Yep, TCIF!!

When this is all over, this city will be truly privately own, from the government, to each department. I wouldn't be surprised if I see Mike Illich, as council president next year.

**Novine** · January-16-12, 11:40 PM

Odd that CRC is being quoted as saying it's $20 billion when they put out a report last month saying it's $14 billion.

http://www.crcmich.org/PUBLICAT/2010s/2011/rpt373.pdf

**rjlj** · January-16-12, 11:48 PM

There is no conspiracy. There is no takeover plan. Work toward giving the residents a return on their investment rather than trying to get face time on TV for one’s self. Just get your shit together like every other city in the United States and everything will be OK. It really is not that difficult. If only Detroit would realize they are decades behind equivalent sized cities throughout the world, maybe something productive would happen.

**Dexlin** · January-17-12, 06:06 AM

How much of this debt belongs to the largely independent and largely regionally funded DWSD? I don't get why distinction aren't made about the overall debt when these are distinctions with differences. The only debt that matters as far as the immediate and middle-term deficit is concern is directly bonded debt by the city proper. DWSD debt, being spread and leveled out at a regional level is much more manageable and much less of an immediate concern.

**Novine** · January-17-12, 06:49 AM

DWSD's share is at least $5 billion. Billions more is in pension obligations although the pension funds are actually in pretty good shape so the likelihood of the city having any immediate big obligation is pretty low. Even much of the direct debt isn't due immediately because those bond payments are spaced out over decades. But that doesn't make for good headlines so you won't see anyone explaining those differences.

**GoGrixdale** · January-17-12, 08:27 AM

Originally Posted by Novine

But that doesn't make for good headlines so you won't see anyone explaining those differences.

The separatist climate and education deficiencies in Metro Detroit are textbook ingredients for the application of disaster capitalism.

Apparently there are many city services and assets that are attractive [[and presumably able) to turn a profit. The citizens choice to hire [read elect] 2 respected CEO's, in my mind, was for them to do just that but on our behalf... we the stock holders [read citizens].