Life in the workers paradise of Detroit
Thirty years ago, it was a workers paradise -- a vibrant city with a gangbusters economy. And then, the people started voting themselves money and benefits.
From
Breitbart:
Emergency manager: Detroit won't pay $2.5B it owes
A team led by a state-appointed emergency manager said Friday that Detroit is defaulting on about $2.5 billion in unsecured debt and is asking creditors to take about 10 cents on the dollar of what the city owes them.
Kevyn Orr spent two hours with about 180 bond insurers, pension trustees, union representatives and other creditors in a move to avoid what bankruptcy experts have said would be the largest municipal bankruptcy in U.S. history.
Underfunded pension claims likely would get less than the 10 cents on the dollar.
An assessment of the plan's progress will come in the next 30 days or so.
I feel sorry for the poor people who trusted the unions and whose retirement finances are shot.
A bit more:
Orr said everyone involved needs to come to grips with Detroit's dire financial situation that has been worsened by years of procrastination and denial.
"If people are sincere and look at this data, you would think a rational person will step back and say, `This is not normal ... but what choice do we have?'" Orr said.
The city's budget deficit could top $380 million by July 1. Orr believes long-term debt tops $17 billion.
The Washington-based bankruptcy attorney hired by Michigan in March reiterated that the chances of bankruptcy are 50-50 for Detroit, the largest U.S. city placed under state oversight.
If the economy was any better, Detroit could become a hotbed of innovation and new industry -- startup costs would be minimal because property values are so low. Unfortunately, the current administration stumbles along with its Keynesian economic policies and its stupid energy policies.
Posted by DaveH at June 14, 2013 9:04 PM