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With 2-3 weeks to receive $30M of state aid from Michigan in order not to run out of cash,...
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Friday, November 30, 2012, 3:07 AM ETWith 2-3 weeks to receive $30M of state aid from Michigan in order not to run out of cash, Detroit is again teetering on the brink of bankruptcy. The aid is contingent of the city implementing the provisions of an agreement in April, when Michigan agreed to provide $137M, but those measures haven't been enacted. Financial mismanagement, political corruption, a hard-hit housing market and a massive loss of population are the causes of Detroit's woe.
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This news story has 9 comments:
Fiscal mismanagement and corruption are largely the same thing. Let creditors seize all public assets and do what they want with them. Let the rest of the people leave.
Same thing when Illinois goes broke. Let them. Let the public employees see their pensions be worth 10% after creditors are paid. Those that allow corruption and public theft should be left to experience the end results.
This country needs to see some real suffering as a result of terrible fiscal policy - maybe that will spur demands for balanced budgets in DC. For some reason the situations in Greece, Spain, etc haven't influenced behavoir here. Maybe we need to see a decrepit city with no services and a miserable standard of living to wake people up.
Man, Detroiters gotta be proud of themselves.
don't even want my name on this one, nasty
What Law School did you go to Andrew?
Btw, Mr. Blurb Writer, the "massive loss of population" is a result of all the other (and let's not forget rampant crime for that list) stuff, not a cause of it. Who the hell would want to live in Detroit if you have any means at all to move away? Well, I suppose if you're one of the ruling kleptocracy, it's been a pretty sweet place to live while leeching off of others, but it looks like the gravy train is about to run out.
Everyone says California is broke, but guess what, they are not! Look for the fight between public employee unions and the municipal bankruptcy judges to go all the way to the Supreme Court. This is a long term restructuring problem caused by money. "Money is the mothers milk of politics" -Jesse Unrah, former speaker of State Assembly and widely considered the most powerful person in California politics.
It's important to distinguish between cause and effect.
A massive loss of population results from fiscal mismanagement, one-party rule and a surfeit of government. It's not as if Detroit was hit like Nagasaki (even if it may look like that), so if productive people move elsewhere, who's to blame?
The entire country is following Detroit, particularly one-party rule.
Where do productive people go now?
people are moving to Red states.....