Detroit is bankrupt

TerryMason

TerryMason

Administrator
Staff member
I was just listening to this on the radio:

Despite attempts to fix the city’s finances and some success in attracting new businesses, a declining industrial base, high crime in some areas, fixed expenses, and allegedly rampant corruption have all brought large deficits.
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The radio show was throwing around some pretty depressing numbers:
  • Down from 2 million residents to 700,000
  • Unemployment around 10 percent
  • 80,000 vacant houses

The worst part of this (well, maybe one of many) is that the major push is to give 10 cents on the dollar to people holding a Detroit pension. Essentially a nice kick in the crotch for may of Detroit's retired police, firefighters and other public servants.
 

I caught it on the news this morning. I really think the economy is turning around in most places, stock market has had good trends, my 401k is looking better but Detroit wasn't doing well before the economy went in the tank. I know some people that live in Marine City, Mich. They'd been telling me how bad some neighborhoods look. I hope they get it turned around soon, sounds like nowhere to go from here but up... Any Michigan Jeepers on here?
 
I can understand the problem - they have all these debts that they owe, including pensions, but more than have of the population have fled the city, and there isn't much money coming in.

At the same time the government doesn't want to get in the business of bailing out cities, because there are plenty more cities doing poorly who are watching this unfold.
 
As we know , if unemployment in general increases to the alarming rates we hear and read all across the country , people will run from violence and the violent will run amuck . In NYC , an attempt , finally , to enforce the fares on public transportation has been in effect for several months and one side of me applaudes it the other side feels sorry for the underprivileged who are just trying to make it . But I'm just the bus operator so mine is not to reason why ....
With regards to pensions , yes , the old non-contributory system really hurt states but the new systems need to be revamped . Trouble is , the pension system is blind to the contributor and only sees the tax dollar investment side that the politicians and lawmakers wish to end outright.
Hers my view ; my pension was initially 30/62 , 30 years of service and pension eligibility age 62 . Preposterous we say ? We lobbied and won ( somehow ) 25/55 . Trouble is , the average persons taking the job are young and will most certainly do MORE than 25 years of service such as myself. Hence the saying " 25 to life ". In excess of 25 years , 2 % is added to each year up to 30 years and 1 1/2 % after 30 . A person could rack up costing MUCH money ! In my case , I will have 25 years in this January but will only be 51 in February . You see how I and others will cost the city and state ? And this is country wide if pensions remain in this structure. Why not just do the obvious , take the age OFF the pension law and allow someone to retire after 25 years . PERIOD ! I can go on , but we firmly believe , no matter how imbecilic and ridiculous , that the system WANTS you to OVERwork yourself and NOT enjoy a long and happy pension life and cheat you of your deserved share but productivity wise , get the most of you . Someone prove me wrong and I will change my belief .
Let us pray for our brothers in Michigan .
 

Major problem is the liberal policy of tax and spend. There hasn't been a conservative mayor there since the 60s. Those that had money, have moved out because of it and those that want have stayed on draining the system dry. The whole country is becoming this way because the govt. promises to take care of us. This has been coming for a long time and it's finaly catching up with us.
 
Baltimore City is next. They continue to spend more than they bring in. Furloughs for the police and fire department are getting more and more. Yet the city officials magically get rises and a full pension after 4 years. Must be nice to be a math magician
 
Every time we hear that another city in another state falls victim to bad economic and future planning , it's just more proof that the government , state as well as federal level has an agenda that dates back to the Reagan administration that is consistently hurting the working man . What they need to realize , and unfortunately sad to say , only George H.W. Bush tried to get it right , that if you hurt the bread winner of any family , there will be less or no money to spend , thereby less to nothing to kick back into the economy ! If they don't fix it soon , they will drive drive this country closer to the brink of collapse than is already threatened . They want every citizen to do their part , but for those who are just scraping by or worse , what more can they expect ?
That will just trigger another tax hike to the endless rat race we currently call MODERN CIVILIZATION . As always , I fear for the future , especially for those who hold high hope for their children . Say a prayer , light a candle , call your congressman , we must remember those who lost their jobs and never believe " it can't happen here " . That's what my union says every day and if we don't believe it , don't expect NOT to see part-time workers in your next contract demands , which is NOW .
 
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