I’d tag this in the 2016 category depending on how the current administration responds. Bailing out the auto industry is still having repercussions both economically and politically. What about bailing out a city?

Report from USAToday:

DETROIT — While Detroit emergency manager Kevyn Orr on Friday was offering short-term reassurances to thousands of city pensioners whose benefits are in jeopardy, his lawyers were waging a whirlwind legal battle over the constitutionality of the bankruptcy filing that could land both sides before a federal judge early next week.

On Friday, Michigan Attorney General Bill Schuette said he will appeal an Ingham County judge’s ruling that Detroit’s bankruptcy filing must be withdrawn because it violates the Michigan Constitution and state law.

However, the order from Ingham County Circuit Judge Rosemarie Aquilina ultimately could have little effect because the bankruptcy case already was filed in federal court, and federal law generally trumps state law. The city filed a motion requesting to include the state as a party in the bankruptcy code’s provisions that put on hold all lawsuits against the city, a clear attempt to fight the Ingham County ruling by preventing the state from being sued in similar fashion. The city is asking U.S. District Judge Steven Rhodes to hold a hearing on Tuesday, or earlier, to decide this and other matters.

Saving the City of Detroit was a central part of the argument used by the Obama administration to lobby for bailing out General Motors, Ford and Chrysler. Looks like Detroit was too far gone at that point to be saved just by keeping some of the remaining businesses afloat.

10 COMMENTS

  1. The Democrats have controlled Detroit since the early 1960’s, but knowing how the modern-day incompetent racist Democrat thinks, they’ll probably “blame” the auto companies, the unions or even the Republicans. (Especially if the Republicans don’t agree to Bailout Detroit) With Democrats. it’s like “their public policies” never ever existed – and it’s someone else’s fault. They, like BO, will never take the “blame” for anything negative, even though their Socialist Policies haven’t worked and continue to Bankrupt the Nation ever since the Presidency of FDR.

    It’s a shame that Republicans have become REALLY STUPID when it comes to stuff like this. They just “sit there and take the arrows and darts” and then turn around and become just like a Socialist Democrat. Thus, they are BOTH completely the SAME in all the important matters – and different only on the minor ones.

  2. Billy – that’s just plain cruel. 🙂 change government retirement and let the unions bail out the city, they are partly responsible

  3. They made their bed, now they should lay down on it. People who vote Democrats into office are just hurting themselves and they know it. They keep expecting results will be different, even as it never will be different.

  4. I don’t think it’ll happen, but if it did, it would be fair. Michigan has ALWAYS sent more tax dollars to other states than we got back–even when our corporate turncoats took their loot and ran–even when our unemployment rate was twice the national average–we were still sending a LOT more money to other states than we were getting back.

    I don’t think it’ll happen, but if we got back HALF of the excess we’ve sent to OTHER states, we could pay off the debt AND rebuild Detroit.

  5. I think Snyder is a rare and mostly extinct breed of non-ideologues who just want to make things better–not just for their cronies. That’s why he may not get renominated.

    Anyway, what I think is that NOBODY should be talking about a “bail out” at this time. Debtors would get the idea that they can get fat on the stupid speculations they made (and, yeah, any “investment” in Detroit in recent years ought to be a total write-off, bad gamble, so sorry, too bad).

    I think the speculators should take a bath first. Then, when things shake out, and we’re looking at what to do with the former great city, then creative options ought to be considered. They have already cleared large areas to turn over to farming. That sounds crazy, but I think that would be brilliant. Get rid of the blight, and once the fear and anxiety about the city has subsided, people will take chances, put up new buildings, just as the suburbs were once farmland. And since this is right in the MIDDLE of the metropolitan area, it seems to me, within a few decades, an entirely new city could sprout up–but with the cool new stuff being INSIDE the city, not around it.

  6. If the Conservatives and Libertarians play their cards right…across the nation people can begin to undo the things they’ve done in their states and maybe even at the Federal level. There’s nothing like seeing a really bad car wreck to make people drive slower and put on their seat belts more often.

    Detroit is evidence that the massive tendency of social justice via government program and a centrally planned economy does in America the same thing it did in Russia (USSR).

    One question is, will people be willing to give up on abortion, marriage redefinition, and other liberal social issues. Its interesting how the two go hand in hand. People who are socially conservative are also fiscally conservative, People who are socially liberal also have a hard time accepting that money doesn’t grow on trees.

    • Wait! What?! I heard that Ben Bernanke has a money tree, but only Politicians are allowed to pick from it and dole it out to the people as they see fit.

    • Josh. The marriage issue is going to get “stickier” as time goes on. Here’s a cute rendition of what will happen when the “crazies” start following the homos into the Vital Statistics offices applying for marriage licenses.

      “Good morning. We want to apply for a marriage license.”

      “Names?”

      “Tim and Jim Jones.”

      “Jones?? Are you related?? I see a resemblance.”

      “Yes, we’re brothers.”

      “Brothers?? You can’t get married.”

      “Why not?? Aren’t you giving marriage licenses to same gender couples?”

      “Yes, thousands. But we haven’t had any siblings. That’s incest!”

      “Incest?” No, we are not gay.”

      “Not gay?? Then why do you want to get married?”

      “For the financial benefits, of course. And we do love each other. Besides, we don’t have any other prospects.”

      “But we’re issuing marriage licenses to gay and lesbian couples who’ve been denied equal protection under the law. If you are not gay, you can get married to a woman.”

      “Wait a minute. A gay man has the same right to marry a woman as I have. But just because I’m straight doesn’t mean I want to marry a woman. I want to marry Jim.”

      “And I want to marry Tim, Are you going to discriminate against us just because we are not gay?”

      “All right, all right. I’ll give you your license. Next.”

      “Hi. We are here to get married.”

      “Names?”

      “John Smith, Jane James, Robert Green, and June Johnson.”

      “Who wants to marry whom?”

      “We all want to marry each other.”

      “But there are four of you!”

      “That’s right. You see, we’re all bisexual. I love Jane and Robert, Jane loves me and June, June loves Robert and Jane, and Robert loves June and me. All of us getting married together is the only way that we can express our sexual preferences in a marital relationship.”

      “But we’ve only been granting licenses to gay and lesbian couples.”

      “So you’re discriminating against bisexuals!”

      “No, it’s just that, well, the traditional idea of marriage is that
      it’s just for couples.”

      “Since when are you standing on tradition?”

      “Well, I mean, you have to draw the line somewhere.”

      “Who says?? There’s no logical reason to limit marriage to couples. The more the better. Besides, we demand our rights! The mayor says the constitution guarantees equal protection under the law. Give us a marriage license!”

      “All right, all right. Next.”

      “Hello, I’d like a marriage license.”

      “In what names?”

      “David Deets.”

      “And the other man?”

      “That’s all. I want to marry myself.”

      “Marry yourself?? What do you mean?”

      “Well, my psychiatrist says I have a dual personality, so I want to marry the other me. Maybe I can file a joint income-tax return.”

      “That does it!? I quit!!? You people are making a mockery of marriage!!”

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