'Insolvent' Detroit Can Proceed With Bankruptcy, Judge Rules

Discussion in 'Crossfire Discussion' started by Tarkus, Dec 3, 2013.

  1. Tarkus

    Tarkus The Thread Stalker

    "The city no longer has the resources to provide its citizens with basic police, fire and emergency services," Judge Rhodes said, ruling that Detroit, once the nation's fourth-largest city, "was and is insolvent."

    The long-awaited decision sets up a bitter battle between the city’s finance officials and its unions, creditors and retirees, who expect deep cuts in pensions and sales of treasured city assets, such as its art collection, as part of the Chapter 9 process.

    The city says pension funds are short by $3.5 billion. Anxious retirees drawing less than $20,000 a year have appeared in court and put an anguished face on the case. Despite his finding, Rhodes cautioned everyone that he won't automatically approve pension cuts that could be part of Detroit's eventual plan to get out of bankruptcy.

  2. Tarkus

    Tarkus The Thread Stalker

    "that this nation, under God, shall have a new birth of freedom—and that government of the people, by the people, for the people, shall not perish from the earth."

  3. Steve12

    Steve12 The night is dark and full of terrors

    I didn't even know cities could go bankrupt. How does a city that big get so hecked up?
  4. BU54

    BU54 1st Stringer

    That's nothing, look at kalifornias debt, Hellinois is another, then step back sit down and look at the federal guberments debt. Need I say more?
  5. smeags

    smeags militant geek

    city official greed plus union greed = chp-9