Detroit, 2.5 Bil debt default

[ZombieApocolypse]

Detroit said it will stop making payment on $2.5 billion of the city’s massive $18.5 billion debt

Detroit rock bottom: City announces $2.5bn debt default ? RT USA

 

[zippy23]

all they need is more democrats running things in that city! just awful

 

[CathyInBlue]

I find it surprising… Not that they would just stop payment on $2.5B, but that they would stop payment on just $2.5B if they're $18.5B in the hole. I'd expect them to just default on the whole enchillada and claim some mutilated form of sovereign immunity and challenge any of their creditors to come at them.

Of course, the people of Detroit, right after the emergency manager did that, would be celebrating that they were now "debt free", but immediately after realizing that they were going to be forced to be profoundly debt free (because no one in their right minds would dare loan Detroit a single nickel after this), the people of Detroit would prolly riot and burn the remains of that burned out burgh to dust and ash anyway. No more free rides. No more govt bennies.

 

[John Galt]

Detroit, the poster child of what awaits America ....

 

[Kirk Freeman]

Just talking to my father on his day and all about this very issue.

He told me about being a student at GMI in Flint and going to Detroit for dinner, shows (he saw The Platters in concert just learned today) and what a wonderful viable city Detroit was. One of my training buddies is a copper in Detroit. He, a veteran of Somalia, says that Mogadishu is much safer and cleaner. I do not know if he is being sarcastic when he says it.

http://www.youtube.com/watch?v=vUbsw28PCpA

 

[Survivalcookie]

I find it surprising… Not that they would just stop payment on $2.5B, but that they would stop payment on just $2.5B if they're $18.5B in the hole. I'd expect them to just default on the whole enchillada and claim some mutilated form of sovereign immunity and challenge any of their creditors to come at them.

Of course, the people of Detroit, right after the emergency manager did that, would be celebrating that they were now "debt free", but immediately after realizing that they were going to be forced to be profoundly debt free (because no one in their right minds would dare loan Detroit a single nickel after this), the people of Detroit would prolly riot and burn the remains of that burned out burgh to dust and ash anyway. No more free rides. No more govt bennies.

You are right there. Where will all the Muslims go.

 

[Jack1861]

Fear not.

Detroit will get a federal bailout and you too will be forced, er have the opportunity, to participate in saving them from the consequences of their bad decisions.

Such bull****.

 

[KLB]

I find it surprising… Not that they would just stop payment on $2.5B, but that they would stop payment on just $2.5B if they're $18.5B in the hole. I'd expect them to just default on the whole enchillada and claim some mutilated form of sovereign immunity and challenge any of their creditors to come at them.

Of course, the people of Detroit, right after the emergency manager did that, would be celebrating that they were now "debt free", but immediately after realizing that they were going to be forced to be profoundly debt free (because no one in their right minds would dare loan Detroit a single nickel after this), the people of Detroit would prolly riot and burn the remains of that burned out burgh to dust and ash anyway. No more free rides. No more govt bennies.

That is apparently the unsecured part of their of debt.

I liked this gem at the end of the article.

“We feel that the bankers and the creditors who are here today with the emergency manager are not going to negotiate in the best interest of the people of the city of Detroit. And we are saying that the same financial institutions that Mr. Orr is negotiating with today are responsible in large part for the crisis that exists in Detroit,” Abayomi Azikiwe, a protester outside the meeting told PBS

 

[miguel]

This is almost as good as the Lions or Red Wings losing.

Tee hee...

 

[Popeye81]

Detroit was once the greatest manufacturing town in America. Their entire city was built and based around the big 3 auto manufacturers and all the medium to small sized companies that supported them.What's going on with them is coming to a city near you if we don't start bringing back manufacturing from overseas.

 

[nascarfantoo]

I was wondering why the state (Michigan) didn't step in and help Detroit until I looked up their debt ($120B +). The 50 states in total are $4.2 trillion in debt. Our national debt is nearly $17 trillion.

Now would each US citizen please send in their $70,000 check and we could wipe out most of these debt. (USPS money orders accepted!)

 

[IndyDave1776]

Detroit, the poster child of what awaits America ....

Indeed so. They have reached the point of proving out Margaret Thatcher's famous declaration that the problem with socialism is that you eventually run out of other people's money.

 

[Survivalcookie]

Detroit was once the greatest manufacturing town in America. Their entire city was built and based around the big 3 auto manufacturers and all the medium to small sized companies that supported them.What's going on with them is coming to a city near you if we don't start bringing back manufacturing from overseas.

My uncle moved to Flint in the late 40s...retired from GM in the 60's and started buying houses in Detroit for pennies on the dollar...he rented out those houses until he died about 4 years ago....his kids are still trying to figure out how many houses he had over 100 so far and they have no idea who paid him rent since he only took cash. People have lived in those houses rent free or was still only paying him 40 or 50 bucks a month rent and got so mad when they were offered the deal to buy them for just a 2 or 3 grand on a rent to own basis.

 

[Legba]

I was just up there 2 weeks ago for a OSHA class. What a depressing place. The traffic alone would stop me from going there again.

 

[drillsgt]

Just talking to my father on his day and all about this very issue.

He told me about being a student at GMI in Flint and going to Detroit for dinner, shows (he saw The Platters in concert just learned today) and what a wonderful viable city Detroit was. One of my training buddies is a copper in Detroit. He, a veteran of Somalia, says that Mogadishu is much safer and cleaner. I do not know if he is being sarcastic when he says it.

Wow, that's a name I hadn't heard in awhile, GMI, now Kettering. I roomed with some GMI guys right outside of campus when going to U of M-Flint. Not the best neighborhood.