The Bingster says no more cash within 70 days ... same game, new leader ... for real this time or a ploy?
Pick the date or say nay ~
The Bingster says no more cash within 70 days ... same game, new leader ... for real this time or a ploy?
Pick the date or say nay ~
Depends on who's call it is. If it's Granholm's, I'd say sometime after she leaves office. If Bing, then I'll call the day after the deadline. October 20th 2009. I don't think there's any reason to BS anymore. And those poor unfortunates being bellicose on TV may as well just pack it in.
Last edited by Stosh; August-10-09 at 04:54 PM. Reason: Add date.
October 17th, 2009
I've heard a lot of business leaders say that realistically, the best thing for Detroit long-term is receivership. Perhaps Bing came in with that mindset and is doing the things he needs to do now to get re-elected in November so that he can be in office to ease the transition into receivership once it finally occurs. He's said before that he's here to make all the tough decisions that other politicians simply cannot make.
Years ago, the idea of Detroit going into receivership would have been a deathblow but now Detroit need a "hail mary." Unless the tax base does a 180, Detroit needs to be restructed and perhaps Bing is that man to get it started. Right now there are other cities that need some form of receivership. Los Angeles comes to mind with a 3 billion dollar deficit.I've heard a lot of business leaders say that realistically, the best thing for Detroit long-term is receivership. Perhaps Bing came in with that mindset and is doing the things he needs to do now to get re-elected in November so that he can be in office to ease the transition into receivership once it finally occurs. He's said before that he's here to make all the tough decisions that other politicians simply cannot make.
I can't see that happening. Houses are being stripped and burnt down left and right. I think in the next two years people in the financial department of Detroit are going to have heart attacks when they see the massive decline in property tax revenue. Add to that decline all the people who own houses that are only worth 10% of what they owe on the house that will be filing for reduced tax burdens. The pain hasn't even begun. It's like comparing a needle injection to 5 gunshots to the arm.
'Twere best done quickly.
I don't see any good reason to wait. But I imagine the administration will prefer it be clearly forced upon them. Before Angels' night.
More important than when the city may enter receivership, what would receivership mean for Detroit? What would be the immediate impact? The long-term ramifications?
Receivership didn't seem to hurt Cleveland much.
Initially, it would mean for the city what Robert Bobb is doing with DPS. An Emergency Financial Manager may be appointed by the state. Only after an EFM is appointed and the situation examined would the decision to seek receivership through a bankruptcy filing be made.
An EFM would be bound by the terms of any existing labor agreements, but he or she could negotiate amendments and new contracts as the existing ones expire. Receivership could allow the city to tear up the existing agreements, get out of various other contracts, possibly get out from some bond payments.
I don't think an EFM would be appointed until early January 2010. Say January 11, 2010.
October as Bing says - and it'll be consummated before Granholm leaves to ensure the hit isn't TOO hard on labor.
Either way, the city [[and others) are totally screwed. There is simply not enough money - and when the property taxes reset on many properties that have lost value - it's not just Detroit that's going to be hurting.
Government as we know it, after the Obamadollars are done, will not be the same on all levels. The stimulus money is not for stimulus but meant as a soft landing. I've heard that from quite a few officials.
Most business leaders I know use the term "reset," and not just Detroit but the state and nation. There is no going back, no rebound. It's going to be forever different; the jobs aren't going to come back [[not saying there won't be new jobs, but it will be in different industries or occupations, manufacturing for all intents and purposes is dead); what people are willing to pay for and how much has so radically changed in the last ten years.
Not even if I bring Cheetos?
Let's split the date and let the time of the announcement decide between us. You can have the morning, I'll take the afternoon.
Well, the press release is going to happen at 11:00am so I'm OK with that.
Detroit is going to be the whipping boy to scare the state unions. Because the State of Michigan is sliding down the same path as Detroit.
I really don't think that a financial manager will do the trick, in this case. That ship has sailed long ago. Given the current climate of uncooperation among the stakeholders, the outcome of any potential negotiation is in serious doubt.Initially, it would mean for the city what Robert Bobb is doing with DPS. An Emergency Financial Manager may be appointed by the state. Only after an EFM is appointed and the situation examined would the decision to seek receivership through a bankruptcy filing be made.
An EFM would be bound by the terms of any existing labor agreements, but he or she could negotiate amendments and new contracts as the existing ones expire. Receivership could allow the city to tear up the existing agreements, get out of various other contracts, possibly get out from some bond payments.
I don't think an EFM would be appointed until early January 2010. Say January 11, 2010.
Kwame screwed this city over with the smoke and mirrors accounting juggling. The time for serious action was 5 years ago. Now it's all just a waiting game. And it's a waiting game that can get ugly real quick, sadly enough.
How ugly? That's up to the Unions and Bing. The possibility of general strikes among the workers is a real one. The sacrifices aren't being doled out evenly, as the Unions have stated. But let's be real here. This is only the beginning. There's plenty of pain left to go around.
hopefully about the time robert bobb is done over at DPS
January 11, 2010
Are you prepared, pt. IV
November 4, 2009. Day after Bing is reelected.
Does anyone recall clearly how NYC was able to avoid bankruptcy in the 70's? There seemed to have been some massive effort by the state and federal government and I wonder if NYC was better off for it in the long run.
President Ford originally refused to bail out New York [[the famous "Drop Dead" headline) because he felt the city hadn't adequately addressed and reformed its budgetary issues. After the city was thus forced to seriously change things and produced results to Ford's satisfaction he granted the funding.
Seems counterproductive for the unions to strike if they'll be trading a 10% cut compared to a 100% cut.
Will members be like lemmings and go over the cliff with their leaders? Hmmm.
Let Detroit go into recievership. City leaders can't handle the spending and the budgeting. If I was Emergency Financial Manager, I would provide " Operation Step Up!"
1. Cut spending to rediculous projects like the proposed "Africantown" in Harmonie Park.
2. Bring Cobo Hall back to the barganing table to have regional authorities take over or lease the building.
3. The pay to all city officials by 25% I might cut to more if the first proposal doesn't work.
4.Start project "Walk the Beat" Bringing Detroit Police officers to walk the streets of Downtown Detroit and Midtown areas. If the crime rate in certian Detroit neighborhoods increase, heavy patrols and neighborhood watch securities will increase.
5. Have Detroit Police officers catch drivers who are using cell phones and texting while driving. Set up speed traps to catch speeders.
6. Propose international outreach to lure businesses to Detroit.
7. Launch operation "Block Club Power" have each and every Detroit neighborhood start their own block clubs, Have every last vacant and abandon homes fix up by having Detroit Public School building trade students to the work along with the neighbors. Have private developers save the remaining retail strips and convert them to retail development opportunities.
8. Crack down all political corruption for various city leaders to the full extent of the law.
9. Build relations between Detroit and suburbs right away.
10. Create a hands off appoach to keep city leaders from taken city tax payer dollars for their own desires.
New York State stepped in a massive way, forming the Municipal Assistance Corporation which sold $10 billon dollars in bonds to prevent NYC from going broke. In exchange, the city massively improved its financial controls and budget process. I do not think the US government participated in the bailout.President Ford originally refused to bail out New York [[the famous "Drop Dead" headline) because he felt the city hadn't adequately addressed and reformed its budgetary issues. After the city was thus forced to seriously change things and produced results to Ford's satisfaction he granted the funding.
"New York City Seasonal Financing Act" - October 1975 - allowed $2.3 billion in loans annually until its expiration in 1978, at which time it was followed by the "New York City Loan Guarantee Act of 1978" which provided continued assistance in the form of Federal loan guarantees through its expiration in June 1982. All told, the US government helped prop up NYC from 1975 until 1986.New York State stepped in a massive way, forming the Municipal Assistance Corporation which sold $10 billon dollars in bonds to prevent NYC from going broke. In exchange, the city massively improved its financial controls and budget process. I do not think the US government participated in the bailout.
http://www.propublica.org/special/government-bailouts
http://books.google.com/books?id=a67...Act%22&f=false
Last edited by lilpup; August-11-09 at 12:54 PM.
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