Detroit's Financial Issues Starting to Boil Over

**BrushStart** · October-13-10, 08:48 AM

http://www.crainsdetroit.com/article...troit-finances

For once, I just have some questions...

Is Detroit headed for Bankruptcy? If so, will it be a good thing in the long-run?

Is it likely that Detroit will go into state receivership? If so, how soon? And, what will be the outcome?

**Zacha341** · October-13-10, 09:05 AM

Yep. Indeed the chickens are coming home to roost! Recall for example under the KK regime how we could not even get an 'audit' out on de' regular and everyone was justifying the fiscal corruption. Payday is hear....

Originally Posted by BrushStart

http://www.crainsdetroit.com/article...troit-finances

For once, I just have some questions...

Is Detroit headed for Bankruptcy? If so, will it be a good thing in the long-run?

Is it likely that Detroit will go into state receivership? If so, how soon? And, what will be the outcome?

LodgeDodger · October-13-10, 09:41 AM

City leadership hasn't been able to manage finances for many years. Detroit needs to go into receivership.

**jackie5275** · October-13-10, 09:49 AM

Originally Posted by BrushStart

http://www.crainsdetroit.com/article...troit-finances

For once, I just have some questions...

Is Detroit headed for Bankruptcy? If so, will it be a good thing in the long-run?

Is it likely that Detroit will go into state receivership? If so, how soon? And, what will be the outcome?

Detroit won't go into receivership until next year at the earliest and that's if Snyder wins for governor. Granholm is too chicken to do it. I don't think Bernero would do it to a fellow Democrat if he wins for governor.

**iheartthed** · October-13-10, 09:53 AM

For anyone who ever wondered why the suburbs should care about Detroit, here's your answer:

The dire financial situation faced by the city of Detroit could impact the cost of borrowing and access to credit by Michigan's government, according to a newly released report by the nonpartisan Senate Fiscal Agency.

You can sprawl out to 42 and a half Mile Road if you want, but one way or another you will still have to pay the legacy costs for what your parents built in Detroit.

**rooms222** · October-13-10, 09:53 AM

That time may be coming shortly. In a year, all the current federal stimulus money for state and local governments will be used up. Municipalities are budgeting like that stimulus will continue. Coming political changes from the midterm elections make that continuation uncertain. Disaster could result.

This BBC report [[video and article) on Gary is very close to the situation in Detroit. The beginning and end show the ruins....The middle shows the chaos at night. Nothing new...

The interesting part is that it shows the stimulus money for local governments in the middle, discusses its effect, and points out that it will very likely be ending soon, creating an unstable budgetary situation....

http://www.bbc.co.uk/blogs/newsnight..._spirit_a.html

**Lowell** · October-13-10, 11:12 AM

The report referred to the financial problem as "contagion," where a default or near default by one borrower "has a negative spillover effect on other government borrowers."

We're all in the same boat no matter how hard of some 'north of Eight Mile' may wish to believe otherwise.

**Crumbled_pavement** · October-13-10, 11:15 AM

She's dying. I can't sit by and watch her in this condition. Doctors and nurses have been working round the clock to save her, but she is hemorrhaging bad. No one knows if all the specialists in the world could save her. I just hope her affliction ends soon. I know the only way for that to happen is for her to finally die. I don't want her to die, but I know she wouldn't want to live like this. Maybe after she's gone something beautiful can sprout in her place, like a rose or a tulip. R.i.P. Detroit, we will all miss you.

**Danny** · October-13-10, 12:07 PM

When Detroit goes into recievership, every city services and finances will be handled by a Emergency Financial Manager. He or she will the absolute power to control all sums of money and services from downsizing city workers to cutting city bus services to pratically nothing. No city council will have a say in this matter. They will be sitting in their offices doing paperwork all day along. When city services cut the people of Detroit will not have a say to save any city services. Just pack up and leave or cope with the cuts. It would be many years away if Detroit goes flat broke we just have to wait and see.

**bailey** · October-13-10, 12:54 PM

Originally Posted by iheartthed

For anyone who ever wondered why the suburbs should care about Detroit, here's your answer:

You can sprawl out to 42 and a half Mile Road if you want, but one way or another you will still have to pay the legacy costs for what your parents built in Detroit.

But if I move to New York, I'm not responsible at all.

**iheartthed** · October-13-10, 12:57 PM

Originally Posted by bailey

But if I move to New York, I'm not responsible at all.

...this is as relevant as the price of tea in China...

**bailey** · October-13-10, 01:00 PM

Originally Posted by iheartthed

...this is as relevant as the price of tea in China...

uh. yeah it is when you lecture people about where they choose to live. Why arent you paying your "parent's legacy costs"?

**iheartthed** · October-13-10, 01:31 PM

Originally Posted by bailey

uh. yeah it is when you lecture people about where they choose to live. Why arent you paying your "parent's legacy costs"?

Uh, no it isn't. My comment is about people living in suburban Detroit who wonder why Detroit matters. That is the answer to their question. Again, your statement is irrelevant.

**bailey** · October-13-10, 01:34 PM

Originally Posted by iheartthed

Uh, no it isn't. My comment is about people living in suburban Detroit who wonder why Detroit matters. That is the answer to their question. Again, your statement is irrelevant.

oooh , ok, just so I'm clear. As long as I move out of suburban Detroit/SeM, I don't bear any responsibility for "the legacy costs of what my parents built in Detroit"?

**Hypestyles** · October-13-10, 01:36 PM

how long would a receivership last, at conservative estimates.. what would bankruptcy do as far as wiping out certain debts?

**iheartthed** · October-13-10, 02:02 PM

Originally Posted by bailey

oooh , ok, just so I'm clear. As long as I move out of suburban Detroit/SeM, I don't bear any responsibility for "the legacy costs of what my parents built in Detroit"?

Will you still be paying taxes to the state of Michigan if you move out of Michigan?

**bailey** · October-13-10, 02:05 PM

Originally Posted by iheartthed

Will you still be paying taxes to the state of Michigan if you move out of Michigan?

Unlikely... but that doesn't mean I'm absolved of all blame when, by leaving, I've directly contributed to the problem of wholesale abandonment of the city and region.

**iheartthed** · October-13-10, 02:06 PM

Originally Posted by bailey

Unlikely...

Well then you have your answer.

**bailey** · October-13-10, 02:14 PM

Originally Posted by iheartthed

Well then you have your answer.

Yes, that I do. You have no stake in this region and thus are in no position to lecture anyone about any choices they have made. You not only quit on detroit, you quit on the entire state. you as much as any person who moved "to 42 mile" bear responsibility for the current state of affairs.

lilpup · October-13-10, 02:15 PM

However, if you lived in New York City the Feds would help with a bail out and you wouldn't have to worry about squat while the city enjoys 20 or so years of Fed welfare, plus extra consideration after that and a few high profile events that turn into massive Federal money grabs.

**iheartthed** · October-13-10, 02:27 PM

Originally Posted by bailey

Yes, that I do. You have no stake in this region and thus are in no position to lecture anyone about any choices they have made. You not only quit on detroit, you quit on the entire state. you as much as any person who moved "to 42 mile" bear responsibility for the current state of affairs.

Save your knee-jerk defensiveness for someone who gives a fuck. I'm just pointing out why Metro Detroit cannot sprawl itself to prosperity.

**fryar** · October-13-10, 02:48 PM

I don't think any discussions about who is responsible for this mess are very helpful.

Originally Posted by lilpup

However, if you lived in New York City the Feds would help with a bail out and you wouldn't have to worry about squat while the city enjoys 20 or so years of Fed welfare, plus extra consideration after that and a few high profile events that turn into massive Federal money grabs.

Huh?

**bailey** · October-13-10, 02:51 PM

Originally Posted by iheartthed

Save your knee-jerk defensiveness for someone who gives a fuck. I'm just pointing out why Metro Detroit cannot sprawl itself to prosperity.

It's also not going to prosper when those who profess such love for it refuse to live here.

I'm not being defensive, I just don't appreciate lectures from quitters.

lilpup · October-13-10, 02:52 PM

Cleveland and Miami went under, New York City got Federal assistance to avoid going under.

**fryar** · October-13-10, 03:04 PM

You mean the loan package from 35 years ago?

Aside from what happened in New York, it seems like Detroit could stand to enter bankruptcy or receivership or whatever is available and best.