Sunday, July 21, 2013

Why Detroit is bankrupt

Update: Links fixed and edits done.  Much nicer to read now.

I'm in Hawaii enjoying a little (actually, a lot) of sun.  Waikiki to be precise.  The news here is all Zimmerman.  There are talk shows dedicated to it and they keep re-creating the scene and the trial as only Americans could.

The other big news is Detroit, which if you haven't heard, is bankrupt.  Here's why:
Much of the city’s debt to banks and bondholders is secured by tax revenue, and just how much the creditors get will have to be hashed out in court. A big chunk is owed to employee pension plans and for the health care costs of more than 18,000 retirees. So the city is caught in a time warp of sorts. It has obligations left over from the boom days, with today’s much smaller revenue base.
Some people have blamed "small" government.  Yeah right.

Auckland is currently racking up huge debt but the population is expected to grow significantly.  That's why Mayor Brown can feel so confident about taking on so much debt.   

And Detroit should be a lesson to those who don't want Auckland  to grow yet still want massive spending and debt programs.  The are plenty of current councillors, and some hoping to be councillors, who preach this.



25 comments:

The Veteran said...

Nick ... Detroit is a 'union' town.
Nuff said.

Judge Holden said...

Great analysis Vet. Really great. In depth and nuanced. Why don't you just do what your chums Redbaiter and KG do and say it's because of all the negroes?

As for Nick's take on it, I'm sure all the council workers will be surprised and happy to learn they've all got gold-plated pensions coming their way.

Paulus said...

Why are Council Staff Pension schemes in this bankruptcy ?
It would be normal in any proper society that pension funds are put into external independent Trust Account outside, and having nothing to do with Unions, Councils or Cities.

JC said...

I learned some interesting facts about Detroit yesterday.

1. The population is 83% Black.

2. 47% of the population is functionally illiterate.

3. The town has been ruled by Democrats for 60 years.

Pretty significant and bad I thought, but then, parts of South Auckland approach that level of Brown population, the adult functional illiteracy rate (nationally) for Maori is near 70% and PI just over 70% and those areas have been Labour for even more decades.

Oh.. and the Supercity is $6 billion in debt, ie twice its GDP.

JC

Judge Holden said...

Really Paulus? Please tell me you're not that ignorant. It's painful.

JC stumbles on to the orthodox conservative explanation; dem nasty blacks! Stay classy, dick.

Judge Holden said...

"Oh.. and the Supercity is $6 billion in debt, ie twice its GDP."

Wow! Except the GDP of Auckland is in excess of $60 billion. Are all tories as fucking stupid as you, or are you an extreme example?

JC said...

"Except the GDP of Auckland is in excess of $60 billion."

OK.. I meant Auckland Council total revenue of $3 billion.

Happy now?

JC

Judge Holden said...

Yes, but that's actually a pretty low level of debt (less than 10% of output), so not sure why that's got you all excited and scared about all the brown people.

JC said...

Judge,

But that $60 B of output is not available to the Council as revenue; sure it can be borrowed against but only so far before the rating agencies downrate you to junk status and debt payments cripple you.

And what excites me about Brown people in Sth AK is the example of Detroit.. if they keep voting the same party decade after decade they become what they already are.. voting fodder, and they get poor education to boot.

JC

Judge Holden said...

Yeah, JC, brown and black people everywhere are just so stooopid aren't they? You're a fuckwit.

JC said...

"Yeah, JC, brown and black people everywhere are just so stooopid aren't they?"

Nope. For example millions of Blacks have moved out of Detroit and the big Democrat controlled cities to the suburbs and even further South to the likes of Texas for a better life under Republican Governors.

Its just a matter of time before the Brown population break out of their Auckland ghettos and head South.

"you're a fuckwit".

Sadly yes... I've failed every lefty test for nearly 70 years.

JC

Judge Holden said...

"For example millions of Blacks have moved out of Detroit and the big Democrat controlled cities to the suburbs and even further South to the likes of Texas for a better life under Republican Governors."

Christ you're full of crap. Your argument is that left wing voters is stooopid and "brown and black" people vote left. Ergo they're stooopid. Except the right wing ones who have moved to Texas. You're hypothesis is that the clever "brown" people will move to Wellington or something, thus destroying Auckland's rating base. Funny thing is you're serious.

"I've failed every lefty test for nearly 70 years."

With what I've seen here, I suspect you've failed every test period.

Adolf Fiinkensein said...

Sludge, with you, I don't suspect.

I know.

Simon said...

"Why are Council Staff Pension schemes in this bankruptcy?"

Because the unions "negotiated" pension payouts with lefttard govt that didnt have any grounding in reality.

It was a ponzi scheme in that it relied upon future taxes (suckers) to pay. There is no real money in these schemes certainly not enough cover what was "negotiated."

NZ doesnt have the same problem because Lange gutted the public service & their pensions in 84 or 85.

Psycho Milt said...

Yeah, JC, brown and black people everywhere are just so stooopid aren't they?

The point is that perhaps electing the same party over and over again for 60 years isn't a good idea, as it encourages corruption and hubris in the party's officials and representatives. Detroit is pretty strong evidence for that point.

Shane Ponting said...

Well said PM.

Judge Holden said...

"The point is that perhaps electing the same party over and over again for 60 years isn't a good idea..."

I don't think that was his point, but even if it was, it's hardly the Dems fault the Republicans are totally unelectable is it?

Simon said...

“The point is that perhaps electing the same party over and over again for 60 years isn't a good idea”

“it's hardly the Dems fault the Republicans are totally unelectable is it?”

Once Detroit began going Galt GOP wasn’t going to get in.

Judge Holden said...

"Once Detroit began going Galt GOP wasn’t going to get in."

Why are Randists so hilarious? They see Galt everywhere, in the same way the little boy from Sixth Sense sees dead people.

Adolf Fiinkensein said...

http://www.powerlineblog.com/archives/2013/07/from-motown-to-no-town.php

Kinda sums the whole thing up.

Judge Holden said...

What's great about that link, Adolt, is that Barone confidently predicted a Romney landslide, just like you did (you know that right?). Here you are still relying on his so-called "analysis", despite his and your fabulous self-humiliation (which has forced you into semi-retirements from blogging). You never learn, because you're a complete moron.

Simon said...

Not coping too well are you Judge.

Adolf Fiinkensein said...

Careful now Sludge. All that snot will gum up your space bar.

Judge Holden said...

Great comeback Shakespeare. How does it feel to reach your advanced age and never be right about anything? Must be upsetting, which explains why you're such an unpleasant knob.

Anonymous said...

Pot Judge Fuckwit, kettle.

EXOCET