Thursday, July 18, 2013

BREAKING: City of Detroit Files for Chapter 9 Bankruptcy

Developing...

UPDATE 1

If the Chapter 9 filing is approved, Detroit’s case would be the largest municipal bankruptcy in the history of the United States.

UPDATE 2

The tax base has been destroyed. From CNBC:

Detroit lost a quarter-million residents between 2000 and 2010. A population that in the 1950s reached 1.8 million is struggling to stay above 700,000. Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.

UPDATE 3

Kevin Orr, a bankruptcy expert, that was hired by the state in March, has said that long-term debt was more than $14 billion and could be between $17 billion and $20 billion.

UPDATE 4

Likely those holding any of the $11 billion in unsecured debt will get next to nothing.

UPDATE 5

5 comments:

  1. who would have been crazy enough to lend city of Detroit any money?

    ReplyDelete
  2. This is the eventual fate of all democracies.

    ReplyDelete
    Replies
    1. What additional evidence does one need regarding the complete intellectual bankruptcy of leftist/socialist/Keynesian/Democrat philosophy and policies?

      Delete
  3. 1. Wenzel, you just post this kind of stuff so that people won't think about the real problems in the world, like that racist Jack Hunter. And Tom Woods and Tom DiLorenzo.

    2. I wonder if my birth certificate is an unsecured asset of the city.

    ReplyDelete