Efm fallout begins!

[michimoby]

SEE I TOLD YOU THIS WOULD HAPPEN!

http://www.freep.com/article/20130315/NEWS01/130315078/

"Standard & Poor’s said it revised the outlook for the city’s general obligation bonds from “negative” to “stable.”"

BUT BUT BUT THAT HAS NOTHING TO DO WITH

"We view the appointment of an emergency manager as a positive step toward regaining structural balance and improving the city's overall financial condition"

OBVIOUSLY S&P IS MADE UP OF A BUNCH OF SUPREMACIST TAKEOVER MONGERS!

[Wesley Mouch]

SEE I TOLD YOU THIS WOULD HAPPEN!

...

OBVIOUSLY S&P IS MADE UP OF A BUNCH OF SUPREMACIST TAKEOVER MONGERS!

You call a bond upgrade fallout? Let the fallout rain.

Detroit has great potential. Through the offices of its democratically and duly elected representatives, our government in Lansing is taking administrative steps to empower the citizens of Detroit. It will pay dividends to the citizens.

[Danny]

So if the EFM was to be established in Detroit city government. S&P 500 will raise its credit rating! WHAT A RISK!

[casscorridor]

Yup. The EM is about protecting the 1%'s investments. Simple as that. It has nothing to do with bettering the lives of ordinary Detroiters.

[michimoby]

1. Sarcasm, it seems, doesn't come across effectively at times.

2. "The EM is about protecting the 1%'s investments. Simple as that. It has nothing to do with bettering the lives of ordinary Detroiters."

Bullshit. The 1% with half a brain stopped investing in Detroit decades ago...unless you know someone that made billions off of junk bonds?

[Not In MI]

Yup. The EM is about protecting the 1%'s investments. Simple as that. It has nothing to do with bettering the lives of ordinary Detroiters.

So its okay for Detroit to take money in the form of debt from those investors when Detroit can't pay its bills, but when its time to pay them back they are now the "1%" class warfare BS?

so is everybody who expects to be paid back from money they lent a greedy 1%er? what about fiscal constraint.

I guess the only other option would have been to super raise taxes to make up for all that massive spending I guess you would have preferred that?

[allhype101]

1. Sarcasm, it seems, doesn't come across effectively at times.

2. "The EM is about protecting the 1%'s investments. Simple as that. It has nothing to do with bettering the lives of ordinary Detroiters."

Bullshit. The 1% with half a brain stopped investing in Detroit decades ago...unless you know someone that made billions off of junk bonds?

Here's some light reading material michimoby: http://www.bloomberg.com/news/2013-0...llion-fee.html

[jt1]

So its okay for Detroit to take money in the form of debt from those investors when Detroit can't pay its bills, but when its time to pay them back they are now the "1%" class warfare BS?

so is everybody who expects to be paid back from money they lent a greedy 1%er? what about fiscal constraint.

I guess the only other option would have been to super raise taxes to make up for all that massive spending I guess you would have preferred that?

The bonds pay a much higher interest due to the risk. I find it amusing when people think it is unfathomable that the bondholders shouldn't get every penny even though they were investing in junk rated bonds.

[Det_ard]

Here's some light reading material michimoby: http://www.bloomberg.com/news/2013-0...llion-fee.html

Reading that with a careful eye shows that $350MM of the $474MM is due to Detroit's failed bets on the direction of interest rates. They bought interest rate swaps and rates didn't more like they expected. That's not the banks' fault. Detroit decided to do that. If I lose money at the casino is it the casino's fault?

[Novine]

Standard and Poors? The clowns that gave AAA ratings to the securities that almost destroyed the financial markets? The guys that downgraded the credit rating of the US which was then followed by a rush of investors into US Treasuries? Why should we be listening to them?

[mwilbert]

Standard and Poors? The clowns that gave AAA ratings to the securities that almost destroyed the financial markets? The guys that downgraded the credit rating of the US which was then followed by a rush of investors into US Treasuries? Why should we be listening to them?

What he said. S&P may add some value evaluating bonds issued by relatively obscure companies. They add no value in a situation like Detroit's.

[Scottathew]

Yup. The EM is about protecting the 1%'s investments. Simple as that. It has nothing to do with bettering the lives of ordinary Detroiters.

Sounds like a bunch of whining to me. If an EM is about protecting the 1%, then what is Detroit City Council about protecting?

The only thing that the race-baiting obstructionist council is trying to protect is their own jobs, salaries, and cushy perks at the expense of an under-served and neglected population.

Council has not, is not, and will not fix a thing in Detroit.

[Novine]

Really? The Cobo deal got done. Council also approved the Hantz plan. These may be too little, too late but no one can claim they've done nothing.

[fanniemae]

Will real estate values go up? More flippers? Bull doze the eyesores and have some land auctions.

[KJ5]

The 1% with half a brain stopped investing in Detroit decades ago

Oh, snap! You gonna take that Dan Gilbert, Illitch family, Roger Penske?

[corktownyuppie]

Really? The Cobo deal got done. Council also approved the Hantz plan. These may be too little, too late but no one can claim they've done nothing.

Council got it done. But they got it done while dragging them up an icy hill into a headwind with them kicking and screaming the whole way. Then after they got it done, Councilmembers used it not as an example of political success, but as more ammunition to exploit anger for having had "yet another jewel" stolen from them.

Rinse and Repeat. I think that's the problem.