Tag: Bankruptcy

Christies is supposed to have a valuation of the city owned art for Detroit emergency manager Kevyn Orr this week.  

Some of the ideas are familiar, but limited in ways typically embraced by establishment Republicans.

Rand Paul's visit to Detroit was precipitated by a conference call being reported by the Detroit News. In it, Senator Paul speaks of enterprise zones, with taxes so low as to "bail yourselves out". Adding to this an loosened visa incentive for a flow of foreign "entrepreneurs" into the city.

Paul, widely considered a 2016 potential presidential candidate, said he will introduce legislation Monday to create "economic freedom zones" by dramatically lowering taxes in depressed areas and loosen visa rules to encourage foreign entrepreneurs to immigrate to the city.

"We hope to create taxes so low you essentially are able to bail yourselves out," Paul said Thursday in a conference call outlining his plan.

I wonder how that would work?

Maybe something like this?

"Mr Chen, you are welcome to stay, invest, develop, and work in our country. However, you are limited to this particular region. If for some reason you are not satisfied there, I guess you are out of luck."

"Welcome to the Hotel Detroit. Love it, or get the hell out of our country.."

Which of course begs the question of what happens to those who emigrate, and decide to move somewhere a little safer than Baghdad of Michigan? When "loosening visa requirements," it seems that a genie let out is a little hard to stuff back in the lamp. Its hard to imagine 'restrictive' movement placed on those who simply seek a better life, and upon finding out that Detroit is no better than the hole they left, it is highly likely that they will indeed "seek" such a place.

And it seems we have heard those words about foreigners feeling welcomed before.

Its not as if they weren't warned.

State appointed Emergency Financial managers couldn't touch any pension contracts whatsoever. As a state initiated law, it would  have run afoul of article 9, section 24; the state's own constitutional protection for pensions.  The EFM law was however, a tool to readjust current contracts not associated with those pensions.  Federal courts would have no say at that point.  But labor unions, and certain municipalities' elected bodies preferred to not allow such a thing.

Instead, a bankruptcy, fully clarified in the constitution as being under federal jurisdiction, takes the state's constitutional protections of those pensions off the table.

Two statements from high profile positions in Michigan State Government. Both from looking at the decision to allow the Detroit Bankruptcy to go forward. The first from the Nerd

"Today, the federal court allowed Detroit to stay on the path toward a brighter future.  A future where streetlights work and ambulances respond quickly. A future where crime and blight shrink, and where jobs and investments surge."

From the AG?

"However, I am deeply disappointed by Judge Rhodes' analysis that pensions may be impaired. I will continue to aggressively defend pensions and Article 9, Section 24 of the Michigan Constitution as this case proceeds to the confirmation stage of bankruptcy planning, at which time we can thoroughly review any plans for potential legal action involving pensions."

In a very anticipated decision in Federal Court downtown this morning, Judge Steven Rhodes ruled that Detroit CAN file for Chapter 9 Bankruptcy.

However, things aren't as cut and dried as they seem on the surface.

And just what might those things be?

Health care exchanges that WORKED have been around for a while. Karl Denninger at the Market Ticker demonstrates how the ACA has screwed us using one of those exchanges for comparisons from 2013 to 2014.

I put it to the test, and I have determined that I will not have insurance after November of next year.

First, Thank God that we did not establish a 'Michigan Exchange' and then read the article, then compare for yourself.

Long-time readers are aware that this inevitable outcome was as plain as day to most local observers like myself, and borrowing a page from the President, want to make this as process as painful as possible to the principles involved, so that the actions which have caused it are never repeated again.

Ever!

Yes, the EM appointed by Gov. Snyder has brought some baggage with him.

Yes, he has made a few enemies along the way.

Yes, even the Governor himself has drawn himself into the fray by how the EM is compensated and most importantly by whom.

But in his defense, he has made some tough decisions which needed to me made.

Staffing is being addressed.

Benefits are being brought to a manageable level, given the resources available to the Detroit.

Assets are being looked at. And when appropriate, are being used to pay off the debts incurred by the city due to it habitual fiscal ineptitude.

The latter isn't really making any new friends with those in charge of overseeing Detroit's Art Museum, a collection wholly owned by the City of Detroit.

Yes, I'm talking about the DIA.

Long-time readers may also recall how the DIA managed to successfully con the Tri-County Region into believing that the DIA was in the poor house and ram through a regional art tax to fund their little operation.

With their meal ticket now in jeopardy because two of those counties aren't keen on taxpayer money going to bailout Detroit, a fact they were repeatedly warned about when the respective county boards placed this tax on the ballot, the DIA Board is looking at new ways to pull their collective fat out of the fire.

You're going to love what scheme they have come up with this time.

At the time, this didn't really make a whole lot of sense.

Sure people make donations to charity all of the time.

They usually do this for altruistic reasons.

Sometimes they simply do it for good PR.

But in Detroit this didn't make any sense whatsoever.

There really wasn't anything to be gained from this action (especially doing it secretly)