Detroit becomes largest US city to file for bankruptcy

[tank]

http://www.nbcnews.com/business/reports-detroit-files-bankruptcy-6C10678946

Does this mean food stamps will be cut off??Yeah right!

 

[brucefan]

Re: Detroit becomes largest US city to file for bankruptcy

More signs of the Obama recovery. Sooner or later, if you cant print money, you drown in your debt

And for those who can print their own money, you overdose on inflation

From Detroit Free Press:
Here?s what happens next:

• The city filed a Chapter 9 bankruptcy petition today in the U.S. Eastern District Court of Michigan. The filing includes additional information on the city?s financial outlook and could include details about the city?s plan to cut costs, such as potential layoffs and department consolidation, said Ken Schneider, a bankruptcy attorney with Detroit-based Schneider Miller PC.
• Alice Batchelder, chief judge of the U.S. 6th Circuit Court of Appeals, will appoint a bankruptcy judge to oversee the city?s case.
• The bankruptcy judge will determine where to hold hearings, which could take place in Detroit, Kentucky, Ohio or Tennessee.
• An automatic stay will be issued on most of Detroit?s bills, including unsecured debts, Schneider said today. The city will continue to pay secured creditors, including water and sewer bondholders, who have the right to seize city assets if Detroit fails to pay.
• An automatic stay also will be issued on lawsuits against the city, including outside challenges by pension officials and union members. This means hearings in those lawsuits will be indefinitely delayed. The plaintiffs can recast their arguments inside bankruptcy court, said Jay Welford, a bankruptcy attorney and partner at Southfield-based Jaffe Raitt Heuer & Weiss.
• The city doesn?t need approval to continue services. For example, the police, fire, water, sewer and public works are completely unaffected by the bankruptcy filing for now and will operate as usual. However, cuts are possible in the future. ?You have the ability to use your cash,? Welford said. ?You don?t need court approval.?
• Creditors likely can challenge the city?s right to file for bankruptcy by issuing motions to dismiss the case.
• In this case, bondholders and pension officials could accuse the city of failing to negotiate ?in good faith,? one of the key criteria allowing the city to file for bankruptcy. The judge would hear arguments on this issue. A ruling could take days, weeks or months ? perhaps even a year.
• The city also will have to prove it is insolvent, another stipulation required to file for Chapter 9 bankruptcy. According to the federal bankruptcy code, this requires the city to prove that it is not paying its bills. Emergency manager Kevyn Orr recently authorized the city to stop making payments on some debts. Bankruptcy experts say they believe that action was enough to satisfy the insolvency requirement, but creditors may still find wiggle room to argue the city is not insolvent.
• If the judge authorizes the city to move forward with a Chapter 9 bankruptcy case, Orr would propose a plan of reorganization. This could take weeks, months or years. Bankruptcy court allows the city to restructure its operations and its balance sheet. This could involve budget cuts, layoffs, consolidation, the sale of assets, slashing union contracts, selling assets and dramatically reducing city debts, including outstanding bonds.
• The city will attempt to win support for the reorganization plan from creditors, including secured bondholders, general obligation bondholders, unions and pension boards. If the city wins enough support, the plan would be put to a vote ? and with enough support, the city could emerge from bankruptcy. Without enough support, the judge could tell the city it must continue to negotiate with creditors. Orr eventually may pursue a ?cram down? procedure, which would require winning support of a minority of creditors and convincing a judge that dissenting creditors are not being reasonable. ?We?ll probably get to that because I don?t see how creditors are going to accept what he?s talking about paying them,? Schneider said.
• The length of the case is widely debated. Some experts say they believe it could be as short as several months. Others say it could take years. Most complex Chapter 9 cases have taken several years.
• http://www.zerohedge.com/node/476583

 

[tank]

Re: Detroit becomes largest US city to file for bankruptcy

More signs of the Obama recovery. Sooner or later, if you cant print money, you drown in your debt

And for those who can print their own money, you overdose on inflation

America is next.Only time will tell but it will be sooner then people expect.

 

[brucefan]

Re: Detroit becomes largest US city to file for bankruptcy

Well , we felt the first rumble when Ben sent out a trial balloon to "taper" his purchases ( no discussion of actually stopping of course) The bond market took that like a fat man stuffing his face at a Taco Bell. Burping, indigestion, and general nastiness quickly ensued

I still believe the next move by the Fed will be to increase, not decrease the amount of bonds they will be buying.

We are in a death spiral now that we cant get out of. The Feds balance sheet no matter will hit 4 trillion , even if he slows down. Its like driving down a road where there is cliff dead ahead, and being concerned about going 85, or 65 miles and hour.

Who cares, there is fkn cliff ahead! :doh1

 

[Great One]

Re: Detroit becomes largest US city to file for bankruptcy

Detroit is America's Africa.

You would think the problem would be obvious.

Segregation is the answer; integration in part created the problem.

 

[tank]

Re: Detroit becomes largest US city to file for bankruptcy

Detroit is America's Africa.

You would think the problem would be obvious.

Segregation is the answer; integration in part created the problem.

But it only get's better under Barry.
http://www.foxnews.com/politics/201...tment-to-compel-diversity-in/?test=latestnews

In a move some claim is tantamount to social engineering, the Department of Housing and Urban Development is imposing a new rule that would allow the feds to track diversity in America’s neighborhoods and then push policies to change those it deems discriminatory.
The policy is called, "Affirmatively Furthering Fair Housing." It will require HUD to gather data on segregation and discrimination in every single neighborhood and try to remedy it.


Read more: http://www.foxnews.com/politics/201...l-diversity-in/?test=latestnews#ixzz2buf3gASr

 

[tank]

Re: Detroit becomes largest US city to file for bankruptcy

But it only get's better under Barry.
http://www.foxnews.com/politics/201...tment-to-compel-diversity-in/?test=latestnews

In a move some claim is tantamount to social engineering, the Department of Housing and Urban Development is imposing a new rule that would allow the feds to track diversity in America’s neighborhoods and then push policies to change those it deems discriminatory.
The policy is called, "Affirmatively Furthering Fair Housing." It will require HUD to gather data on segregation and discrimination in every single neighborhood and try to remedy it.


Read more: http://www.foxnews.com/politics/201...l-diversity-in/?test=latestnews#ixzz2buf3gASr

You are suppose to accept the gangbangers and feel guilty because of what happened over 150 years ago.If 3rd generation welfare families can't keep a city going then the suburban towns should have to . Start brushing up on your rap music and practice wearing your pants hanging down below your ass so you can fit in.Just ax em and I am sure they will help you out.They might want to know ''who you is'' or '' where you be'' but you will get ebonics down sooner then you think.Good luck with that.

 

[The Seer]

Re: Detroit becomes largest US city to file for bankruptcy

In the last census, I filled it out, as required by the Constitution, with "2". It is an enumeration only. None of their business of my religion or race.

 

[Berkleybob]

Re: Detroit becomes largest US city to file for bankruptcy

Why don't they just raise taxes on the rich. The people of Detroit need help