Infinite Unknown

Related article: Detroit May Run Out Of Cash Next Month

- Detroit Bankruptcy Decision Depends On Next 6 Weeks As Kevyn Orr Deals With Debt (Huffington Post/Reuters, May 19, 2013):

DETROIT, May 19 (Reuters) – Bond restructurings, negotiated settlements with bondholders and bond insurers, and tough talk with unionized workers are on the agenda as Detroit’s emergency financial manager tries to meet a self-imposed, six-week deadline to decide whether the city can get through its financial crisis without a bankruptcy filing.

Kevyn Orr, a former bankruptcy lawyer, in his first report to the state of Michigan since Governor Rick Snyder appointed him, laid out last week a bracing picture of steps he may need to take to address the city’s troubles.

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Tags: Bankruptcy, Bonds, Collapse, Debt, Detroit, Economy, Government, Politics, U.S.

- Saudi Man Arrested At Detroit Airport For Owning Pressure Cooker (ZeroHedge, May 13, 2013):

Meet the new “WMD” whose merest ownership is sufficient to get you arrested. That, and having an Arabic sounding name of course.

From (the soon to be broke?) Detroit News:

Man from Saudi Arabia arrested at Detroit airport with pressure cooker

Federal agents arrested a Saudi Arabian traveler who arrived at Detroit Metropolitan Airport with a pressure cooker, a key component used in the Boston Marathon bombings last month.

Hussain Al Kwawahir will be arraigned at 1 p.m. in federal court for allegedly using an altered passport and lying to a Customs and Border Protection Agent about the pressure cooker.

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Tags: Detroit, Global News, Government, Politics, Saudi Arabia, Travel, U.S.

- Detroit May Run Out Of Cash Next Month (ZeroHedge, May 13, 2013):

Another day, another US city on the brink of insolvency. This time it’s Detroit, whose recently appointed emergency financial manager Kevyn Orr said may run out of cash next month and must cut costs such as long-term debt and retiree obligations. According to Bloomberg, “Orr’s report says the cost of $9.4 billion in bond, pension and other long-term liabilities is sapping the ability to provide such basic services as public safety and transportation. He listed cutting debt principal, retiree benefits and jobs among options he may take. “No one should underestimate the severity of the financial crisis,” He called his report “a sobering wake-up call about the dire financial straits the city of Detroit faces.”

Funny, the above bolded sentence, because we have long since crossed into a stage where absolutely everyone is underestimating the severity of the financial crisis, which incidentally is long over if one listens to the broader media. As for Detroit, may we suggest the same medicine that the “expert economists” prescribe for every other instance of overlevered insolvency: just issue more debt. Surely with worthless Greek bonds soaring, there must be some Japanese investment funds that can’t wait to buy up all that paper on nothing but promises of untold riches courtesy of the endless carry trade that apparently can do no wrong.

Then again, Detroit may not be Greece: Continue reading »

Tags: Bonds, Collapse, Debt, Detroit, Government, Politics, U.S., Unemployment

- Bankrupt, Decaying And Nearly Dead: 24 Facts About The City Of Detroit That Will Shock You (Economic Collapse, Feb 3, 2013):

If you want to know what the future of America is going to be like, just look at the city of Detroit.  Once upon a time it was a symbol of everything that America was doing right, but today it has been transformed into a rotting, decaying, post-apocalyptic hellhole.  Detroit was once the fourth-largest city in the United States, and in 1960 Detroit had the highest per-capita income in the entire nation.  It was the greatest manufacturing city the world had ever seen, and the rest of the globe looked at Detroit with a sense of awe and wonder.  But now the city of Detroit has become a bad joke to the rest of the world.  Unemployment is rampant, 60 percent of the children are living in poverty and the city government is on the verge of bankruptcy.  They say that Detroit is just a matter of “weeks or months” away from running out of cash, and when Detroit does declare bankruptcy it will be the largest municipal bankruptcy in the history of the United States.  But don’t look down on Detroit, because the truth is that Detroit is really a metaphor for what is happening to America as a whole.  In the United States today, our manufacturing infrastructure has been gutted, poverty is absolutely exploding and we are rapidly approaching national bankruptcy.  Detroit may have gotten there first, but the rest of the country will follow soon enough. Continue reading »

Tags: Collapse, Detroit, Economy, Global News, Society, U.S.

- Report: Childhood Poverty High In Detroit, But Teen Pregnancy Down (CBS News, Jan 24, 2013):

DETROIT (WWJ) A new report from Data Driven Detroit reveals that in spite of the many families with kids that left Detroit between 2000 and 2010 — much of the city’s population still consists of children living in poverty.

Sixty percent of children in Detroit live in poverty, per the “State of Detroit” report.  This represents a 64.7 percent increase in child poverty in the city since 1999. Children account for 194,347 of Detroit’s residents, or 27 percent of the city’s total population.

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Tags: Children, Collapse, Detroit, Economy, Global News, Society, U.S., weapon

Fox 2 News Headlines

- Detroit To Obama: We Voted For You, Now Bail Us Out! (The Daily Bail, Dec 6, 2012):

‘Obama owes us some bacon.’

According to Detroit Councilwoman JoAnn Watson, President Obama owes the city some government ‘bacon’ for supporting him in the 2012 election.  In a recent council meeting, Watson said, “Our people in an overwhelming way supported the re-election of this president and there ought to be a quid pro quo  on that.” Continue reading »

Tags: Bailout, Barack Obama, Collapse, Detroit, Economy, Government, Obama administration, Politics, Society, U.S.

- Enter Detroit At Your Own Risk! (ZeroHedge, Oct 7, 2012):

“Detroit is America’s most violent city; its homicide rate is the highest in the country.” Detroit Police department’s “Enter At Your Own Risk” warning to citizens came at a rally yesterday as they fear under-staffing in the midst of what CBS reports as “the explosion in violent crime” leaves police in “deplorable, dangerous, and war-like conditions.” While the union presses for more staff – or higher wages to compensate for the risk – we are sure Snake Plissken can be relied upon to rescue GM’s CEO if he needs it.

Tags: Collapse, Crime, Detroit, Global News, Government, Politics, Society, U.S.

- These 12 Hellholes Are Examples Of What The Rest Of America Will Look Like Soon (The Economic Collapse, July 15, 2012):

Do you want to see where this country is headed?  If so, don’t focus on the few areas that are still very prosperous.  New York City has Wall Street, Washington D.C. has the federal government and Silicon Valley has Google and Facebook.  Those are the exceptions.  The reality is that most of the country has been experiencing a slow decline for a very long time and once thriving cities such as Gary, Indiana and Flint, Michigan have become absolute hellholes.  They are examples of what the rest of America will look like soon.  60 years ago, most Americans were decent, hard working people and there were always good jobs available for anyone that was willing to roll up his or her sleeves and put in an honest day of work.  But now all of that has changed.  Over the past decade, tens of thousands of manufacturing facilities have shut down and millions of jobs have left the country.  Cities such as Cleveland, Baltimore and Detroit were once shining examples of everything that was right about America, but now they stand out like festering sores.  The “blue collar cities” have been hit the hardest by the gutting of our economic infrastructure.  There are many communities in America today where it seems like all of the hope and all of the life have been sucked right out of them.  You can see it in the eyes of the people.  The good times are gone permanently and they know it.  Unfortunately, the remainder of the country will soon be experiencing the despair that those communities are feeling.

The following are 12 hellholes that are examples of what the rest of America will look like soon…. Continue reading »

Tags: Baltimore, California, Camden, Chicago, Cleveland, Collapse, Detroit, Economy, Flint, Gary, Global News, Illinois, Indiana, Louisiana, Maryland, Michigan, Missouri, New Jersey, NEW ORLEANS, Oakland, Ohio, Philadelphia, Society, St. Louis, Stockton, U.S.

- Detroit will go broke in a week if consent deal lawsuit isn’t withdrawn (Detroit Free Press, June 8, 2012):

Detroit will run out of cash a week from today if a lawsuit challenging the validity of the city’s consent agreement with the state is not withdrawn, city officials said this morning.

Jack Martin, the city’s new chief financial officer, said the city will be broke by June 15 but should be able to make payroll for its employees. He said the city will be operating in a deficit situation if the state withholds payments on a portion of the $80 million in bond money needed to help keep the city afloat.

The battle ultimately could lead to an emergency manager if state officials deem the city to be in violation of the consent agreement that gives the state significant control over Detroit’s finances.

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Tags: Detroit, Global News, Government, Politics, U.S.

- After a bargain? Own a three bedroom home in Detroit for JUST $500…as the city is revealed to have the cheapest housing in the U.S (Daily Mail, April 24, 2012)

Tags: Collapse, Detroit, Economy, Global News, Real Estate, U.S.