Detroit files for Chapter 9 bankruptcy amid staggering debts

Re:Detroit files for Chapter 9 bankruptcy amid staggering de... by tptacek on Thursday July 18, 2013 @06:18PM (#6066930)

It's all well and good to talk about "honoring commitments made to retirees", but if the city can't provide basic services because 40 cents of every dollar it spends goes to debt service, the city isn't in a position to honor those commitments anyways; it will simply fail harder and more painfully for all its residents in the futile attempt to honor those intractable commitments.

[ Parent | on HN ]

Re:Detroit files for Chapter 9 bankruptcy amid staggering de... by fnordfnordfnord on Thursday July 18, 2013 @06:24PM (#6066958)

I know, it's a shame for Detroit that it isn't "Too Big to Fail."

[ Parent | on HN ]

Re:Detroit files for Chapter 9 bankruptcy amid staggering de... by tptacek on Thursday July 18, 2013 @06:26PM (#6066968)

Is there some constructive alternative you have? In your dream world, how would Michigan have handled its Detroit problem?

[ Parent | on HN ]

Re:Detroit files for Chapter 9 bankruptcy amid staggering de... by fnordfnordfnord on Thursday July 18, 2013 @06:35PM (#6067020)

In dream-world, we'd never have problems like this! A constructive alternative to Detroit's problem? They should have declared bankruptcy a long time ago, before levering up their debt with bond schemes.

[ Parent | on HN ]

Re:Detroit files for Chapter 9 bankruptcy amid staggering de... by zevyoura on Thursday July 18, 2013 @07:20PM (#6067219)

I'm not sure it counts as a constructive alternative if it requires time travel.

[ Parent | on HN ]

Re:Detroit files for Chapter 9 bankruptcy amid staggering de... by mhuffman on Thursday July 18, 2013 @11:16PM (#6068123)

I do. Raise property taxes and sales taxes until you can pay your bills. The solution is actually simple. It is impossible for elected officials to do and keep their job, but simple.

[ Parent | on HN ]

Re:Detroit files for Chapter 9 bankruptcy amid staggering de... by tcoppi on Friday July 19, 2013 @08:32AM (#6069670)

That might not actually work, seeing as how Detroit already has a population problem and higher taxes will probably force even more of them out, leading to flat or lower overall revenue.

[ Parent | on HN ]

Re:Detroit files for Chapter 9 bankruptcy amid staggering de... by fr0sty on Friday July 19, 2013 @09:48AM (#6070084)

Wouldn't work in the least. Property tax delinquency in Detroit is already > 50% (http://www.detroitnews.com/article/20130221/METRO01/30221037...)

You can't squeeze blood from a stone.

[ Parent | on HN ]

Re:Detroit files for Chapter 9 bankruptcy amid staggering de... by bilbo0s on Thursday July 18, 2013 @07:30PM (#6067273)

Fnord is also being a bit misleading...

Not to put too fine a point on it...

But the VAST majority of the money spent "honoring commitments made to retirees" is not made to "current residents of Detroit". Most of it was just a one-way funnel of money from Detroit out to the suburbs, other areas of Michigan and beyond.

It makes no sense for Detroit... to essentially be funding people in the suburbs... by taking on debt. That was just craziness.

[ Parent | on HN ]