Detroit Becomes Largest U.S. City To File Bankruptcy

[Adelex]

And so it begins...

[xavier]

WOW. THIS is big news.

We are entering a financial apocalypse.

[EmperorBob]

Detroit is an order of magnitude worse than any other major city in the US. This isn't necessarily a leading indicator, although some of the same dynamics (massive indebtedness, stagnant/declining revenues, underfunded pensions) apply. My guess is what Detroit is going through now will be happening elsewhere, but only 5+ years from now.

[xavier]

Detroit is an order of magnitude worse than any other major city in the US. This isn't necessarily a leading indicator, although some of the same dynamics (massive indebtedness, stagnant/declining revenues, underfunded pensions) apply. My guess is what Detroit is going through now will be happening elsewhere, but only 5+ years from now.

Hmm

It always amazes me how people think that any debt crisis is 5 years away.

It has always been 5 years away.

Well, in my opinion, it is at a maximum of 2 years away. If I was to time it, I would guess this house of cards would begin to fall later this year or in early 2014.

[Kluge]

Detroit is an order of magnitude worse than any other major city in the US. This isn't necessarily a leading indicator, although some of the same dynamics (massive indebtedness, stagnant/declining revenues, underfunded pensions) apply. My guess is what Detroit is going through now will be happening elsewhere, but only 5+ years from now.

Detroit's been plagued by the most incompetent, corrupt sacks of garbage running the city for quite a few years. Economic ideology aside, Detroit was doomed just by the people running it.

Detroit Power:
http://www.youtube.com/watch?v=GDqu8tXrQWU
http://www.youtube.com/watch?v=stoT4pZNn7A
http://www.youtube.com/watch?v=vhsPipaalb4
http://www.youtube.com/watch?v=21iKcHjZnTc
http://www.youtube.com/watch?v=gEfNF7Naq14

You might watch the last one and not think it's real.... http://www.freep.com/article/20130624/NEWS01/306240077/McCree-master-ruling-misconduct Most ridiculous place in the US...

[LHB]

if I didn't live here it would be comical the way things have been handled here i Detroit. the tax base shrinks every year, huge mainstream businesses, hotels, restruants being shuttered and sold off, most with power and water bills several years behind, and home occupancy has never been lower. there are entire blocks with 1 home left. I have no neighbors. two houses on either side and both behind me are empty, and I live in the nicest area still inside Detroit! it is now common practice here if police catch you squatting, as long as your not scrapping copper, have no open fires or illegal electric hook-ups and not trashing the place, your allowed to stay with no hassles. they even started alowing squatters to get legal gas/electric hook-ups with a few inspections and a pre-paid account.

what little money that does come in to the city is either stolen, embezzeled or paid out in kick-backs, bribes or settlements.
EVERYONE IS ON THE TAKE. from our school principals,city councel members, the mayor....and soon the County Commissioner....all have been, are in, or are steps away from prison sentences for fraud, bribery or corruption. Martha Conyers, Kwaymi Kilpatrick, Sam Riddle.....all convicts. then we have a county commissioner who still gave millions in bonus' and severance pay to an absentee employee when she was uncovered, only to have her sue and win even more....all the while he spent 19 million on a new 10 story jail. today it's a 3 story shell. already over budget, bankrupt and now for sale. to sweeten the real estate deal (to defer blame), the offer also includes our current jail, court house and juvenile facility... all with no plans to replace these much needed infrastructures.

another city councelman is being charged for improper contact with an underage boy. seems he was using a highschool mentoring program he spearheaded as a dating service

I could go on, an I don't really even keep up with all the current events or news. I can attest: about the only things thriving here are corruption, blight, guns, drugs and crime. if it wasn't for the grow houses and dispencerys seeking saftey inside the city limits, it WOULD be a ghost town

[vokain]

i think it'll be a good buy once we reach total capitulation

[vokain]

i think it'll be a good buy once we reach total capitulation

I was just thinking might be a good time to buy land.

Cost of ownership throws me off :/

[Kluge]

i think it'll be a good buy once we reach total capitulation

I was just thinking might be a good time to buy land.

Cost of ownership throws me off :/

Yeah. 2-5 years of backtaxes on everything (MI property taxes are high across the board, but Detroit is particularly suck) + very high insurance rates.

Try to find a failing town in Indiana, Goat. They're pretty good on property taxes. I firmly believe the best place to live is right on the border with other states (corners are best). It's almost like living lawless. Buy your milk in one state which doesn't have price minimums, alcohol and gas in another, go to the doctor in another and pick up some "illegal" fireworks while you're there... 

[vokain]

I live in Indiana, the old governor ran things relatively okay. Pretty business friendly, reasonable taxes, and one of the few state governments that doesn't have a deficit. Also eliminating its inheritance tax. Still wouldn't live here though 

[Kaiji]

if I didn't live here it would be comical the way things have been handled here i Detroit. the tax base shrinks every year, huge mainstream businesses, hotels, restruants being shuttered and sold off, most with power and water bills several years behind, and home occupancy has never been lower. there are entire blocks with 1 home left. I have no neighbors. two houses on either side and both behind me are empty, and I live in the nicest area still inside Detroit! it is now common practice here if police catch you squatting, as long as your not scrapping copper, have no open fires or illegal electric hook-ups and not trashing the place, your allowed to stay with no hassles. they even started alowing squatters to get legal gas/electric hook-ups with a few inspections and a pre-paid account.

what little money that does come in to the city is either stolen, embezzeled or paid out in kick-backs, bribes or settlements.
EVERYONE IS ON THE TAKE. from our school principals,city councel members, the mayor....and soon the County Commissioner....all have been, are in, or are steps away from prison sentences for fraud, bribery or corruption. Martha Conyers, Kwaymi Kilpatrick, Sam Riddle.....all convicts. then we have a county commissioner who still gave millions in bonus' and severance pay to an absentee employee when she was uncovered, only to have her sue and win even more....all the while he spent 19 million on a new 10 story jail. today it's a 3 story shell. already over budget, bankrupt and now for sale. to sweeten the real estate deal (to defer blame), the offer also includes our current jail, court house and juvenile facility... all with no plans to replace these much needed infrastructures.

another city councelman is being charged for improper contact with an underage boy. seems he was using a highschool mentoring program he spearheaded as a dating service

I could go on, an I don't really even keep up with all the current events or news. I can attest: about the only things thriving here are corruption, blight, guns, drugs and crime. if it wasn't for the grow houses and dispencerys seeking saftey inside the city limits, it WOULD be a ghost town

Thanks for giving the real view of your city from a citizens perspective. It seems similar to what happens in failed countries where most of the people are starving while a few corrupt people can make millions from the lack of laws and government.
You would think that they would put more effort in turning the city around so there would be more money to embezzle.

The problem with Detroit was the inability to adapt after the auto industry there tanked. Same with the working class where ever you go. They expect things to never change so they are unable to get new skills and adapt to changing job environments. Since 2008 we have college graduates who themselves cannot get suitable employment. We are going through a new change now where university degrees no longer guarantee good jobs and graduates are unable to adapt and aquire the skills to survive.

[wachtwoord]

And so it begins...

And so it continues ...

[Lethn]

Bitcoin user not affected

[31337157]

Bitcoin user not affected

LOL!

I knew Detroit was bad, but I am just learning now that an entire city could go bankrupt. I guess I never really thought of it really, could this be a house of cards type situation? Scary.

[marcus_of_augustus]

Looks like the socialists taxed themselves to prosperity again ... 

I heard Belle Island was going to be put up for sale ... any chance Bitcoiners can buy it and turn it into an economic free trade zone and to boost Detroit commercial activity and innovation park/center aka

"THE Bitcoin Island?"

[xavier]

Yup. Infact, entire states can go bankrupt - and they will.

I'm not sure if this is big enough to trigger effects elsewhere in the system - it's only $20bn written-off - although apparently it might affect some smaller insurance companies.

I guess we'll have to see.

[Shaltuum]

Great. Now how long until US of A goes bankrupt?

[Raize]

I have no neighbors. two houses on either side and both behind me are empty, and I live in the nicest area still inside Detroit! it is now common practice here if police catch you squatting, as long as your not scrapping copper, have no open fires or illegal electric hook-ups and not trashing the place, your allowed to stay with no hassles. they even started alowing squatters to get legal gas/electric hook-ups with a few inspections and a pre-paid account.

Can I move into one of the houses next to you and bring my Bitcoin miners? I just need electric and Internet. I mostly just keep to myself and own my own means of protection. I could probably find someone similar to me that could live in the house on the other side of you.

[cr1776]

And a Michigan judge blocked it just a bit ago.  Who knows what the appellate court will do:

LANSING — An Ingham County judge says Thursday's historic Detroit bankruptcy filing violates the Michigan Constitution and state law and must be withdrawn.

But Attorney General Bill Schuette said he will appeal Circuit Judge Rosemarie Aquilina’s Friday rulings and seek emergency consideration by the Michigan Court of Appeals. He wants her orders stayed pending the appeals, he said in a news release.
...

http://www.freep.com/article/20130719/NEWS06/307190075/Michigan-AG-challenges-judge-s-ruling-Detroit-bankruptcy-unconstitutional

I have no neighbors. two houses on either side and both behind me are empty, and I live in the nicest area still inside Detroit! it is now common practice here if police catch you squatting, as long as your not scrapping copper, have no open fires or illegal electric hook-ups and not trashing the place, your allowed to stay with no hassles. they even started alowing squatters to get legal gas/electric hook-ups with a few inspections and a pre-paid account.

Can I move into one of the houses next to you and bring my Bitcoin miners? I just need electric and Internet. I mostly just keep to myself and own my own means of protection. I could probably find someone similar to me that could live in the house on the other side of you.

[Malawi]

Might be a good time to buy-to-rent in Detroit. Especially if the USD tanks as that will mean that inland production will go up (imports gets more expensive). The bankruptcy might lead to better financial control and federal money/ local tax breaks etc

If I was in the US and wanted to start up a production facility, Detroit might be a likely location.

From the bottom the only way is up.