The Conservative Cave
Current Events => Politics => Topic started by: Ptarmigan on December 05, 2012, 09:52:45 AM
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Detroit councilwoman to Obama: We voted for you, now bail us out
http://www.myfoxdetroit.com/story/20264712/detroit-councilwoman-to-obama-we-supported-you-now-support-us
DETROIT (WJBK) -- The city of Detroit faces a major financial crisis and one member of city council thinks President Barack Obama should step in and help.
A local or state government asking for bailout is a slippery slope. Others will ask for bailouts too.
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Obama to councilwoman: "What? What? Did somebody say something? Must've been the wind..."
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Detroit councilwoman to Obama: We voted for you, now bail us out.
From The Devil's Dictionary by Ambrose Bierce
Vote (n): the instrument and symbol of a free man's power to make a fool of himself and a wreck of his country.
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The WSJ published an editorial yesterday that talked about that sucking chest wound known as Detroit.
They quite rightly state that the city is on life support and is really in its death throes.
When -- not if -- they go bankrupt, it'll be the largest city in the country to go tits up.
Once the last $30 million is gone, they ain't no mo. Detroit Mayor Dave Bing has bung. He dun.
here ya go -- it's a good read.
The political gospel according to Democrats is that the auto bailout saved Detroit. If only it were so. Alas, costly labor agreements have driven Motown like GM GM -0.94% and Chrysler to disrepair. Perhaps the only fix now is to let Detroit go bankrupt.
Michigan lawmakers have kept Detroit on life support for the past six months and may need to do so indefinitely barring a miraculous economic recovery. The city will run out of cash this month unless the state releases $30 million in bond proceeds, which are being held in escrow under a consent agreement that council members reluctantly approved in April. The rescue package ties $137 million in state aid to reforms and lets Mayor Dave Bing redo labor contracts.
The city has already drawn $40 million from the state drip and may soon be cut off since council members last month rejected a contract for a legal firm to advise the mayor, a condition of further aid. The council cashiered the contract because the legal firm Miller Canfield helped craft the agreement, which the unions virulently oppose.
While the council is digging Detroit's grave, Mr. Bing is performing triage. The Democratic mayor has slashed wages across the board by 10%; increased health premiums and co-pays; reduced current-worker pensions and suspended retirees' 2.25% cost-of-living raises. This quadruple bypass operation will save about $60 million this year, but the city will still likely end the fiscal year next June $50 million in the red.
Enlarge Image
Julie Dermansky/Corbis
Abandoned, blighted school for sale in Detroit, Michigan.
Meanwhile, third-party actuaries are pegging the city's retirement liabilities at $11 billion, nearly twice as much as the city has estimated. Detroit will spend $160 million this year and $135 million in 2013 on retiree benefits even after Mr. Bing's labor reforms are phased in. Some of the problem is demographic and has been exacerbated by defined-benefit pensions that let workers retire in their 40s. Many retirees living into their 80s are drawing benefits for nearly twice as long as they work.
The mayor has also floated raising the retirement age and moving new hires to 401(k)-style plans as the state did in 1997. He's even put the nuclear option—freezing pensions for all workers—on the table. Federal law requires private employers to do this if their pension funds become insolvent, but there are no such diktats for local governments.
Another idea is outsourcing operations to private companies. According to the Mackinac Center for Public Policy, the city could save about $110 million annually by contracting out its bus system, garbage collection and water management. Selling its electrical system to an investor-owned utility could raise $300 million to $500 million. Unions oppose all of the above.
Egged on by the city council, the unions have also sued to block the consent agreement and the mayor's labor reforms. State courts threw out their lawsuits this summer, but the unions hope that voters' November repeal of a state emergency manager law, which provides the framework for the consent agreement, will also void the reforms.
In any event, Gov. Rick Snyder and Republican lawmakers are rewriting the nullified law to assist other insolvent cities. One option is to allow distressed municipalities to file for Chapter 9 bankruptcy without state authorization, which is currently required. Some Detroit council members are importuning the state to let the city go bankrupt so they can escape the strictures of the consent agreement. But a bankruptcy judge is unlikely to be more lenient than the mayor.
And make no mistake, Detroit is on its deathbed. Its unemployment rate is nearly twice as high as its surrounding metropolitan region. It has the highest violent crime rate of any major city in part because its police force has been stripped to pay for retirement bills while two-thirds of its street lights are broken. Its schools are among America's worst. The city has lost a quarter of its population over the last decade, and its abandoned lots cover more acreage than Paris.
If the council wants to bolt from its state rehab program, the only way to rescue Detroit may be through an orderly bankruptcy (i.e., not politically negotiated) that restructures its $2.5 billion in general fund-backed debt and $11 billion in retirement obligations. Detroit would be the largest city to date to file for bankruptcy. Its restructuring could drag on for several years, slash pensions for many retirees and impair the city's ability to borrow for decades.
But at the very least, it would provide an instructive lesson for other chronically insolvent cities like Chicago and Los Angeles that have delayed reforms because they believe they're too big to fail.
WSJ Link (http://online.wsj.com/article/SB10001424127887323852904578129262547384972.html?KEYWORDS=Detroit)
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...may soon be cut off since council members last month rejected a contract for a legal firm to advise the mayor, a condition of further aid. The council cashiered the contract because the legal firm Miller Canfield helped craft the agreement, which the unions virulently oppose.
Some of the problem is demographic and has been exacerbated by defined-benefit pensions that let workers retire in their 40s. Many retirees living into their 80s are drawing benefits for nearly twice as long as they work.
Another idea is outsourcing operations to private companies. According to the Mackinac Center for Public Policy, the city could save about $110 million annually by contracting out its bus system, garbage collection and water management. Selling its electrical system to an investor-owned utility could raise $300 million to $500 million. Unions oppose all of the above.
Egged on by the city council, the unions have also sued to block the consent agreement and the mayor's labor reforms. State courts threw out their lawsuits this summer, but the unions hope that voters' November repeal of a state emergency manager law, which provides the framework for the consent agreement, will also void the reforms.
I'm no dot connecting, historically trained arc technician, but I am beginning to see a root cause of Detroit's problems.
And make no mistake, Detroit is on its deathbed. Its unemployment rate is nearly twice as high as its surrounding metropolitan region. It has the highest violent crime rate of any major city in part because its police force has been stripped to pay for retirement bills while two-thirds of its street lights are broken. Its schools are among America's worst. The city has lost a quarter of its population over the last decade, and its abandoned lots cover more acreage than Paris.
A once great, proud, shining city reduced to 3rd world rubble by democrats. Savages run the streets while criminals run City Hall...
:ownit:
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http://www.myfoxdetroit.com/story/20264712/detroit-councilwoman-to-obama-we-supported-you-now-support-us
:bawl: We were dumb enough to support you a second time, why won't you support us, my master?! :bawl:
This woman represents the idiocy of Detroit. The sheer 100% entitlement personality of that cespool makes me angry. Bail yourselves out. Elect a Conservative.
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So much for all that "Detroit is back" happy horseshit from the run-up to the political campaign season.
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Robbers With AK-47s Hit Two Detroit Gas Stations (http://detroit.cbslocal.com/2012/12/05/robbers-with-ak-47s-hit-two-detroit-gas-stations/)
4 found slain in Detroit home; homicides spiking (http://hosted.ap.org/dynamic/stories/U/US_DETROIT_HOUSE_BODIES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-12-05-11-41-17)
Is Detroit in a race with Chicago?
Best rib-eye steak I ever had was at a steak house on the North side of Detroit. I can also remember when the sidewalk in front of Chicago's Tribune Building was so clean that you could eat your breakfast off the sidewalk.
But we're in the United States of Zimbabwe now.........
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This is what got my attention;
"Our people in an overwhelming way supported the re-election of this president and there ought to be a quid pro quo and you ought to exercise leadership on that," said Watson.
So..... we voted, you pay. Didn't Romney say this and was beat up for it ?
.
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Robbers With AK-47s Hit Two Detroit Gas Stations (http://detroit.cbslocal.com/2012/12/05/robbers-with-ak-47s-hit-two-detroit-gas-stations/)
4 found slain in Detroit home; homicides spiking (http://hosted.ap.org/dynamic/stories/U/US_DETROIT_HOUSE_BODIES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-12-05-11-41-17)
Is Detroit in a race with Chicago?
Is detroit worth saving? Based on those 2 links and liberals aversion to us being in war torn territory, we should pull out of detroit all together.
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Is detroit worth saving? Based on those 2 links and liberals aversion to us being in war torn territory, we should pull out of detroit all together.
The Coney Island hot dogs are good. And there is a local Italian bakery in my home town in the western suburbs that makes a pizza bread to die for. I'd get one sometimes for lunch; it was right across the street from the high school I went to.
Apart from that?
BURN IT.
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I think the answer is as plain as the faces on city council, it's as simple as black and white, all black and no white.
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Detroit Apocalypse: 50 Years of Democrat Rool and Drool
(http://thereformedbroker.files.wordpress.com/2009/08/detroit-1.jpg)
(http://streetsblog.net/wp-content/uploads/2009/10/3982437635_3b783ffeaa_b.jpg)
(http://cmsimg.detnews.com/apps/pbcsi.dll/bilde?Site=C3&Date=20110407&Category=OPINION03&ArtNo=104070334&Ref=AR&MaxW=640&Border=0)
(http://m5.paperblog.com/i/6/64072/the-ruins-of-detroit-L-Qs5Fcf.jpeg)
(http://i.usatoday.net/communitymanager/_photos/drive-on/2011/06/06/gmx-wide-community.jpg)
Ready to be returned to the Huron Indians:
(http://www.wsws.org/images/2011jan/j05-detr-diss-SS/slide11.jpg)
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Detroit councilwoman to Obama: We voted for you, now bail us out
http://www.myfoxdetroit.com/story/20264712/detroit-councilwoman-to-obama-we-supported-you-now-support-us
A local or state government asking for bailout is a slippery slope. Others will ask for bailouts too.
Obama has already had your vote. He no longer needs you.
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There's only one thing that can fix Detroit
:dozer:
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Obama has already had your vote. He no longer needs you.
In fact, he knew from the start that he had your vote, which is why he never intended to go out of his way to help as it is.
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This from a woman whose property taxes are a whopping $68 per year.
Yeah, color me unimpressed.
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The sad part is this isnt the 1st time she asked for a bailout either. In April of 2011 she said the Detroit "deserves" a bailout at least as big as GM but the story apparently never made it outside of the Detroit newspapers