Detroit defaults

[GunnyGene]

I wish them luck, but I think Detroit is history as a viable city.

The Motor City’s day of reckoning is here.

The insolvent city’s emergency manager, Kevyn Orr, has called together dozens of major city creditors for a historic meeting this morning at the Westin Hotel at Metro Airport, officially kicking off negotiations with stakes that could hardly be higher.

Riding on the outcome of these talks — which could extend into August once creditors go back to mull over Orr’s offer to settle debts for fewer than 10 cents on the dollar — are Orr’s hopes to keep the city out of bankruptcy court and, ultimately, his challenge to vastly reduce the city’s staggering debts so he can restructure city government. The goal, his team says: Put Detroit in a position to grow and provide better public services in a sustainable way for years to come.

“We’re going to go in, and we’re going to fight for the future of the city of Detroit,” Orr’s spokesman, Bill Nowling, told the Free Press this week. “That’s what it’s about.”

Out of view from the public eye, Orr is expected make an introductory presentation to an audience that speaks his language — dollar signs — and hand out copies of a roughly 200-page proposal that goes into excruciating detail on every Detroit financial obligation, including bond debt and pension and health care obligations estimated at $15.8 billion but that could be as high as $17 billion.

The basic math tells the story.

At $17 billion, Detroit’s liabilities represent nearly $25,000 for each of the city’s 700,000 residents. It is money Detroit cannot afford to pay back.

http://www.freep.com/article/20130614/N ... -Kevyn-Orr

 

[John A.]

It is not just Detroit that is suffering and bleeding out slowly over time drip by drip.

This is just the tip of the iceberg.

We cannot sustain the path that we are all on.

I fear this will cascade into something larger that cannot be stopped.

 

[mingaa]

...another sad day in a long, difficult time of a one great city. Detroit is still there it just moved - mostly north and goes by the names of new the communities. The auto industry is still there as well - it's just not IN Detroit.

The city is eying the DIA (Detroit Institute of Art) as it IS owned by the city as some major museums are. The assets purchased directly with city funding (back in the peak times) MAY be vulnerable - though museum ethics and accrediting groups (AAM) have strict governing practices outlined.

*sigh*