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Detroit Files For Bankruptcy?!?

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  • Center Left
    Independent
    Denton, TX
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    The entire city of Detroit is filing for bankruptcy. This will be the largest municipal bankruptcy in U.S. history, set to be finalized in 2014. I never thought about a city filing for bankruptcy. I wasn't aware that it was an option. I knew Detroit has been in financial shambles for a long time now. But, I didn't see this one coming.

    How do you think this will affect the rest of the state of Michigan? Will this set a precedent for other major cities, even other states to file as well, in the near future? I hear Chicago is bad off..
  • Other Party
    Nebraska
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    Unfortunately it's not uncommon. Since 2010 8 cities and towns have filed for bankruptcy, 3 in California. There have been 36 cities, towns, counties, utilities, and other municipitalities that have filed since 2010. Prior to this, the largest city is Stockton, and the largest filing by debt is Jefferson County Alabama, at 4 billion.

    Detroit is the latest, but will not be the last.
  • Democrat
    Philadelphia, PA
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    I can't speak on those cities but its just been noted, that the top 5 employers in the City of Detroit is the city itself, teachers, utilities, police & fire and related and the city government itself ( politicians and their staff ). ironic huh?
  • Other Party
    Nebraska
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    Like someone (M.Thatcher?) once famously said "Sooner or later you run out of other peoples money".

    Looks like that's what happened to Detroit. And the mismanagement and corruption, combined with a massive loss of manufacturing jobs and more than half their population.
  • Democrat
    Logansport, IN
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    Everyone is talking about Detroit's bankruptcy, but so far the mainstream media has missed an important piece of the story: their incinerator. This "burning trash to make electricity" incinerator was supposed to dispose of their trash and create cheap electricity, but instead has cost Detroit's residents over $1.2 billion in debt, plus paying about $150/ton to burn their trash (compared to average fees of $30-$40/ton). "Waste of energy" schemes are being being peddled across the country, often with new labels such as "it's not incineration, it's pyrolysis (or gasification, or plasma arc). Don't be fooled when these salesmen come to your community claiming to create cheap electricity from trash with little pollution. Incinerating resources (either by old-fashioned mass-burning or by isolating the gasification step of burning and calling it "new", "clean", and "green") creates one tenth of the jobs that recyclying does, and is also a very expensive way to create electricity. So take a lesson from Detroit (and Harrisburg, PA), two cities whose incinerators had a large role in their bankruptcy.
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    I will never be able to call myself an "economist," but I always heard: "As General Motors goes, so goes the nation." And as long as our automobile factories were prospering, there were plenty of jobs and lots of employed people paying taxes, to keep things going. Maybe there is a connection between all the competition with foreign cars, & so less customers for the Detroit cars, which leads to less profit coming in for auto workers. This leads to less taxes being paid, to support the infrastructure (& the govt), & pretty soon there is a domino effect. It did not help anything much when our Republican Masters of Commerce decided to "outsource" so many of our jobs overseas, thus building up the economies of other countries which are often our enemies, & leading to the destruction of our own American economy. Then, at the same time, our dear GOP decided that NO RICH people should ever pay any Taxes. Which is leading to the DEATH of America, as we know it.