Detroit Was First

October 30, 2013

The Ten US Cities With Less Than Ten Days Of Cash On Hand

As the Detroit bankruptcy hearing heats up following news that the city’s unsecured creditors, among them pensioners, are set to recover pennies on the dollar, 16 to be precise, the question of which are the next cities to follow in the footsteps of bankrupt Motown, becomes relevant once again.

Courtesy of the WSJ, and the second part of its series on “U.S. Cities Grapple With Finances“, here is a list of the US cities that when push comes to shove metaphorically, and when the money runs out literally, will have no choice but to knock on the door of the local regional bankruptcy court and submit that long-prepared bankruptcy petition.

Specifically, here are the cities that have 10 days or less in cash on hand available. Because, unless one is the Fed, cash and lack thereof is all that matters.

 


Government Healthcare

October 30, 2013

Liberal promises being made were never designed to be kept … A face to Detroit’s bankruptcy: Paralyzed firefighter to lose health benefits

This is a precautionary tale for New York and their next socialist mayor … And make no mistake that is exactly what he is … It’s a sad tale, and you cannot blame the victim.


Detroit In Trouble… Threat Management

September 24, 2013

Anarchy In Detroit.

When liberals run your city into the ground.


It Can’t Go On Forever ….

August 30, 2013

Public pensionsSan Bernardino 1, Calpers 0.

 San Bernardino just received the judicial go-ahead to declare bankruptcy more than a year after its initial bankruptcy filing. The ruling, delivered by a federal bankruptcy court on Wednesday, concludes a long legal battle between the city and Calpers, which was fighting to keep the city out of bankruptcy in order to keep its funds flowing into the pension coffers. It now looks like Calpers will have to get in line with the city’s other creditors, meaning it will probably have to take a haircut just like everyone else. . . .

The judge’s reasoning behind the ruling was simple, as the New York Times reports:

All of the 10,000 creditors are better served by allowing the bankruptcy to go forward, Judge Jury added.

“I can’t see anything other than dissolving the city if they can’t reorganize under Chapter 9,” the judge said. “They can’t make cash where it isn’t. If they got all the money they want—who isn’t going to get paid? All the employees? I don’t know, how does that help Calpers if the employees aren’t paid?”

The bankruptcy of one of California’s biggest cities is a major story in its own right, but even more important is what this tells us about Detroit, the country’s largest municipal bankruptcy case. Followers of that saga will note that Detroit’s pension funds are using tactics very similar to those of Calpers, fighting in court to keep the city out of bankruptcy. The Times is careful to note that the two cases are different, and that San Bernardino’s case is not precedent-setting for Detroit. But this is nonetheless an early indicator for how federal bankruptcy courts might treat these cases moving forward—and it gives Detroit’s public pension funds plenty more to worry about.

There are some truths in life that are inviolate.

Promises that can’t be kept, won’t be.

Debt that can’t be repaid, won’t be.

Government and people need to figure this out…


Michigan Judge Halts Detroit Bankruptcy Because It Dishonors Obama

July 21, 2013

Do we care ???

It’s come to this … Ingham County judge rules Detroit bankruptcy be withdrawn; Schuette appeals … Shining city on the hill goes from brightest light, to lights out in one progressive lesson. It’s been all democrats all the time.

From The Detroit News:

“Government in Detroit somehow worse than thought.” So I assume the judge will pay for Detroit’s ills???

Aquilina, who granted the restraining order, clearly was irked.

Prior to her ruling on Friday, she criticized the Snyder administration and Attorney General’s Office for what appeared to be hasty action to outflank pension board attorneys.

“It’s cheating, sir, and it’s cheating good people who work,” the judge told assistant Attorney General Brian Devlin. “It’s also not honoring the (United States) president, who took (Detroit’s auto companies) out of bankruptcy.”

Aquilina said she would make sure President Obama got a copy of her order.

“I know he’s watching this,” she said, predicting the president ultimately will have to take action to make sure existing pension commitments are honored.

She’s essentially threatening to tattle on the governor by faxing a copy of her order to Our National Father, whose dignity is on the line as the fate of America’s most notorious experiment in pure progressive government is decided.


Bankrupt!!!

July 21, 2013

Another Judge with a 3.o.

A Michigan judge ruled Friday, that Detroit’s bankruptcy was unconstitutional and dishonored Barack Obama.

No kidding.

Detroit News reported:

Ruling that the governor and Detroit’s emergency manager violated the state constitution, an Ingham County Circuit judge ordered Friday that Detroit’s federal bankruptcy filing be withdrawn.
“It’s absolutely needed,” said Judge Rosemary Aquilina, observing she hopes Gov. Rick Snyder “reads certain sections of the (Michigan) constitution and reconsiders his actions.”

“It’s cheating, sir, and it’s cheating good people who work,” the judge told assistant Attorney General Brian Devlin. “It’s also not honoring the (United States) president, who took (Detroit’s auto companies) out of bankruptcy.”

Aquilina said she would make sure President Obama got a copy of her order.

“I know he’s watching this,” she said, predicting the president ultimately will have to take action to make sure existing pension commitments are honored.

It’s nice to know we have such impartial judges in this country.

 


DETROIT GOES BROKE

July 18, 2013

LIBERAL Detroit files for Ch. 9 bankruptcy:

… Chapter 9 bankruptcy is for “municipalities,” which refers to cities, towns, taxing authorities, municipal utilities, and other governmental entities. This type of bankruptcy is usually very contentious, complex, political, and expensive. Right now, the city of Stockton in California is contemplating Chapter 9 bankruptcy. It may be the case that due to the economy, more and more municipalities will be filing for Chapter 9 in the future.

Can the Federal Government go bankrupt?

And another one hits the fire …

Lot for sale, has house …. cheap…

Largest municipal bankruptcy in history…

 


When One Of These Liberal Cities Goes Bankrupt …

July 18, 2013

The effects are far reaching and long lasting: Muni Retirees Face 90% Loss Under Detroit’s Pending “Free-Fall” Bankruptcy

And here it comes again:

The odds of an out-of-court settlement between Detroit’s emergency manager and its creditors are“extremely slim,” as the WSJ reports that the troubled city’s D-Day draws ever closer to becoming the largest muni default in US history.

The last straw on Detroit’s camel’s back of bankruptcy was following discussions last week between Kevyn Orr (Detroit’s emergency manager) and the White House as any hope of a federal bailout to evert bankruptcy fizzled. Folowing Detroit’s default in June – demonstrating its insolvency – and its “negotiations in full faith” with creditors set the scene for a pending day in court.

The current plan (for now rejected by creditors) means a 90% loss for muni-worker retirees, 81% loss for unsecured creditors, and a 75% loss for secured creditors leaving a “free fall” bankruptcy filing - one without a clear plan or much agreement beforehand with creditors – the most  likely outcome “because there is no other way out of here if we don’t reach consensus.”

Aren’t you glad you are not a liberal … Who thinks ground up unicorns and pixie dust can fuel everything???

In the words of that great thinker … Rachel Jeantel, … Run!!!!


Sure It Will, Plenty Of Jobs For Bankruptcy Lawyers And Democrat Fat Cat Obama Donors

June 28, 2013

In the category of LOL — IMF: ‘Climate change will create jobs’.

Sure it will, we can put them new green jobs, right next to the pile of failed Obama green companies, which now number over 50 total bankruptcies. Tax payer money down the rat-hole.

I never saw so many jobs engaged in a hoax, and the hoaxers before. CO2 is the stuff of life on planet Earth. You want to stop that, don’t exhale.

When did lying become so prevalent. Doesn’t Anybody understand anything these days???


Detroit Recovery Plan Threatens Muni-Market Underpinnings

June 22, 2013

You knew Detroit went bankrupt? Well given that news — This is not good for bond holders: proposed a deal last week that included skipping a $39.7 million payment on pension-obligation debt. The city is also set to default on unsecured unlimited-tax and limited-tax general-obligation bonds as it grapples with $17 billion in liabilities to avoid a record bankruptcy.

So if cities can go bankrupt and stiff the bond holders, then what? This ain’t GM.


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