Detroit Insolvent, Emergency Manager Kevyn Orr says

Chad Livengood, Detroit News, May 12, 2013

Emergency Manager Kevyn Orr says the city of Detroit’s cash-flow crisis makes it “insolvent” and unable to borrow more money to mask over debts being made worse by skipping millions in payments for retiree pensions and health care.

After 45 days on the job, Orr’s initial assessment of Detroit’s perilous finances is laid bare in a 41-page report to be delivered today to state Treasurer Andy Dillon.

Calling it “a sobering wake-up call about the dire financial straits the city of Detroit faces,” Orr said he will use the report as a baseline for paring down the city’s $15.6 billion in debt and long-term liabilities.

Orr, a Washington, D.C., bankruptcy attorney, did not use the word “bankruptcy” anywhere in his report but said the city is “insolvent” and has “effectively exhausted its ability to borrow” after years of issuing long-term debt to pay its bills. Previously, he has said he hopes to avoid a Chapter 9 filing.

The report hints that city employees who were not hit by last year’s wage reductions could face pay cuts in the near future and that Wall Street bondholders will be asked to take a haircut to relieve a city that shelled out $133 million in debt payments last year on a $1.23 billion budget.

{snip}

“No one should underestimate the severity of the financial crisis,” he said Sunday in a statement.

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Despite budget cuts adopted by the City Council and Bing before his appointment, Orr said the city’s $326 million deficit is expected to grow by $60 million before the fiscal year ends June 30. When another $70 million in borrowing is accounted for, the city’s deficit is at least $456 million, Orr spokesman Bill Nowling said.

{snip}

The emergency manager’s spokesman put the city’s predicament in more blunt terms. “We’re going to be out of money by the end of the year,” Nowling said Sunday. “If all we did was collect taxes and pay our debt, we couldn’t pay it off in 20 years. That’s the situation that we’re in now.”

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  • If Detroit was a private corporation, its stockholders or creditors or both would have forced it into bankruptcy court years ago.

    • Jane Johnson

      If it was a black owned company, would that even be allowed? With minority set-asides and cheap SBA loans to get them up and running, seems like the government would have had the foresight to have a contingency plan in place to protect them from themselves when they inevitably fail.

  • Yet, the white, brain frozen liberal STILL votes to keep paying for Detroit’s mess.

    My message to you Yankees: IF your state looks like a mitten, then stay away from MY state! We already have enough carpetbaggers from both Yankeeland, and south of the border.

    • ye ol’ swampyankee

      I see this all the time with north versus south discussions. For some odd reason both sides have this ridiculous desire to compare entire southern states with specific northern cities. Not exactly an apples to apples comparison. Southerners tend to think of the north as one ongoing concrete jungle, while northerners think of southerners as still living on farms with no shoes and missing some teeth. As for frozen brains, the other choice is sun baked. At least in the northern states we generally don’t have to deal with blacks outside the cities, while southern whites got them everywhere.

      So my advice to Yankee despising rebs’ is if you don’t like the 2nd invasion, is to petition your state governments from offering tax incentives for northern corporations in the first place. There are circumstances bigger than all of us and many northerners wouldn’t be down there in the first place if it wasn’t for this, aside from some retiree’s, Many northerners complain because they don’t want to be there in the first place but it’s a choice of following the company, or the unemployment line.

      Blame the economy.

    • APaige

      YOUR state? So White people moving south TODAY you would consider ‘carpetbaggers’ on par with illegals from Mexico? That is a shame.

      • jambi19

        I don’t consider them carpet baggers. However I get upset when they move down here for the 0% income tax, lecture everyone about how backwards things are all while continuing to vote for anti-white politicians intent on turning their new home into the decaying union state they came from.

        • TeutonicKnight67

          Most of the whites I know who have headed south were definitely racially realistic. In fact, that’s one of the aspects of the Southland that attracted them (besides the income tax).

        • nobody

          Liberals don’t flee to the south. You guys scare them worse than the criminal blacks for some reason. I try to remind them that when they are walking home from the gay bar at night, or wherever liberals hang out, they aren’t looking over there shoulder watching for racist southern white men, they are looking for blacks and hispanics. And with good reason, they commit a massively disproportionate amount of violent crime for their relatively small percentage of the population. But of course that is something they would never acknowledge.

      • “APaige”, let me fill you in on how the yankee carpetbagger is more damaging than the illegal alien.
        Once the white liberal has ruined his state with diversity, he flees to a “safer and better place’ for his family.
        That place, of course will be nearly all white.
        However, once he’s here, he says in his disgusting, liberal, ambiguously gay voice, “Why is there no diversity here? We need more minorities! There are too many racists in this southern state, and I plan to enlighten them!”
        NOW, Mr. New Yorker has teamed up with Ms. Femnazi of California, who fled her own state for the same reasons, will vote in some like minded politicians who will grant amnesty to the illegal alien, and attract blacks with Affirmative Action opportunities.
        Eventually, the yankee has now ruined his new home, so he will pack up, move, and repeat the process all over again.

        • jimh19

          Hey D.B.:

          You got room to talk, especially after hijacking that airplane. I mean, sheeit.

        • Homo_Occidentalis

          The white flight Liberal types from New York have already met up with the fleeing Californians somewhere around Kansas. Soon there will be nowhere left to flee diversity, and these slimeballs will have to deal with the enrichment they have foisted upon the rest of us.

        • ye, ol’ swampyankee

          The liberal white libtards you describe are only one segment of the overall northern population. Primarily the urban trendy- types.The parameters of your mindset needs to expand considerably. Except for the trendy transplant types you’ve been exposed to. Whites outside urban zones are basically conservative, both fiscally and on social issues. The west coast could be different, but that’s not my territory.

          Here’s another kind of New Yorker I’m sure you didn’t take into considration. Hail to the great northern forests and no blacks.

          http://www.youtube.com/watch?v=02L4LlnJRNQ

  • thurlow

    If Detroit was a private corporation its leaders would be in prison.

    • Aspiring rapper

      Lots of Detroit leaders ARE in prison. It doesn’t stop the black power juggernaut, and the “civil rights” pimps will never be held accountable for their actions.

      • Nathanwartooth

        Exactly. The people who sold loans to the city are supposed to get shafted because Blacks mismanaged the city into oblivion.

        But I guess it’s no different than traitorous Whites mismanaging the Federal budget and forcing tax payers to eat it through inflation and higher taxes.

    • ATBOTL

      Not if that private corporation were a bank.

    • nobody

      Maybe Detroit can develop some type of prison leadership council. You know, the type you see in major prison gangs. The Mayor can maybe slip a kite on down the line or use contraband cell phones to get his orders to his people on the outside. I feel like this form of governance would highly appeal to your average Detroit voter.

  • Easyrhino1

    Talk about bang for your buck, there’s some screaming real estate deals waiting to be had in Detroit.
    Problem being you step out your front door and you’re in Detroit

    • The__Bobster

      And you have to pay back taxes.

    • nobody

      If we built a wall around Detroit whatever small amount of the population that survived the initial violence would be back in the stone ages and indistinguishable from most of Africa within a few years.

    • Jefferson

      I would rather live in a zombie apocalypse, than live in Detroit. At least I will be safer in a zombie apocalypse.

  • Aspiring rapper

    They can’t let Detroit officially declare bankruptcy because Detroit is the largest symbol of black urban rule. They’ll craft a special category of financial re-organization that avoids the words “bankrupt” or “insolvent”.

    • Municipal fiscal restructuring.

      • jambi19

        I am still waiting for them to blame it all on the “predatory lending practices”.

    • Homo_Occidentalis

      “Bankruptcy” is of course another racist “social construct” used by privileged white males to vilify their opponents. They can change the lexicon, but they can’t hide what is plain to see.

  • Of course it is insolvent …. a black man is still running.

  • bigone4u

    The best use of Detroit is as a movie set portraying a dystopian science fiction future.

    • Bon, From the Land of Babble

      Already done. Robocop.

      Do you think Robocop was a member of the police union??

      • Luis

        Bon, “Robocop” was another example of how Hollywood gets it wrong. All the dope dealers were machine gun wielding whites. The Omni Corporation was headed up by white crooked men.

        And blonde Leeza Gibbons portrayed a television newswoman.

  • The__Bobster

    The report hints that city employees who were not hit by last year’s wage reductions could face pay cuts in the near future and that Wall Street bondholders will be asked to take a haircut to relieve a city that shelled out $133 million in debt payments last year on a $1.23 billion budget.
    ___________

    It’s hard to believe that savvy WS players would buy DeToilet bonds. I have a feeling that they were sold to unsophisticated overseas investors.

    • Some may have been sold to overseas investors, but most probably weren’t.
      .
      Every financial action by professionals is hedged, buy something, sell something else. Buy Detoilet bonds, short sell Birmingham or Stockton bonds, or something similar. You know both are crap but it is a bet that one is crappier.

  • Homo_Occidentalis

    After 40 years of Black Democrat rule, what did these Negroes expect? Detroit is a cargo-cult city, desperately trying to maintain an inadequate facsimile of white civilization. Whatever industry didn’t abandon ship after the Negro insurgency of ’67 was soon forced out due to the death vice of corrupt unions and stiff competition from foreign auto-makers.
    Having seen the beautiful Art-Deco architecture of the downtown area and the Neo-Classical Michigan central station with my own eyes, these monuments built by white artisans were to me bastions of a more hopeful era, when the future held greater promise, when Henry Ford championed the common man, when Detroit was more than just a Paris of the West, but a monument to industriousness itself.
    It is now the ghost of the America that was and should have been.

    • Sloppo

      The freed bantus did what the southern armies could not.

    • Luis

      Funny you mention Henry Ford. He did not exactly “champion the common man”. To the contrary, he considered the autoworkers union to be a work of the devil, and imported poor, unskilled Bantus as scab labor, whenever the union went on strike.

  • The__Bobster

    The people in charge of running Chocolate Cities have no concept of balanced budgets.

    • Jefferson

      Neither do African dictators, they have no concept of balanced budgets either. Which is one of the reasons why Africa is a dump.

      • IstvanIN

        But they all live in grand palaces and have armored Mercedes Benzes.

      • Will

        Africa is a dump because it is chock full of negroes.

        • BonusGift

          Bingo, it’s the people not the political name tag.

          • Luis

            And yet, they keep talking about how sub-Sahara Africa is poised to become an economic player.

          • BonusGift

            Sure, always the next non-white great hope; and then one day it will be something to the effect of: Gee where did Whitey go, and isn’t that coincidental that the truly dark ages are upon us?

    • Rhialto

      Thz accontn stuff be rasiss; jss the man keepin th’ Brutha down.

  • Give this new guy 6 months and it will be worse off than it is now…..

  • Howard W. Campbell

    Just for a moment, let us say that Kevyn Orr has the same intestinal fortitude as Pastor Manning or SB Fuller (i.e will call a spade a spade). Political correctness will not allow him to declare the city of Detroit bankrupt. I’m sure that it would set of a chain reaction through a number of other cities that are run by the undertow. (We just can’t have that).

    Too bad Rick Snyder didn’t outsource this job to the Chinese. They don’t suffer from white guilt and would probably clean house in very short order. (FWIW, Lyndon Johnson seriously considered bringing in foreign troops to deal with student demonstrators in the 1960’s)

  • ye, ol’ swampyankee

    The real Michigan, not the screwed up Detroit Michigan.

    http://www.youtube.com/watch?v=gpkWDvXQuTk

  • Jefferson

    There is a zip code in Detroit that is 97 percent Black, which recently won the honor as being the most dangerous zip code in America to live in.

    A zip code that is 97 percent White would NEVER in a million years make such a list.

  • White Mom in WDC

    Oh well. Deal

  • Bon, From the Land of Babble

    Detroit’s long-term obligations are at least $15.7 billion, including unfunded pension and retirement benefits.

    This is nothing higher taxes and a living wage couldn’t solve!!

    Detroit’s fast food workers are setting the example needed to save their city:

    Fast food workers at more than 60 restaurants in Detroit walked off the job Friday. This may be the largest fast food strike in American history, involving more than 400 workers from McDonald’s, Long John Silver’s, Burger King, Popeyes and KFC. Some locations were forced to shut down. At issue is workers’ right to form a union and an increase in base pay to a minimum of $15 per hour.

    Or…

    Or gasoline could be thrown on Detroit — and let it burn to the ground..

    Really. At this point what difference would it make??

    Bon

    • Howard W. Campbell

      Wow, a 400 person strike to demand $15.00 an hour. The unions aren’t what they used to be. Besides, most of these people will probably be replaced by robots in a few years. I generally do not care for McDonalds, but stopped off at one in Miles City, Montana some time back. It was just amazing to see all white faces behind the counter. Too bad that sight is so rare in America now.

      How about walling off the city, shutting off welfare and letting nature take its course.

      • jambi19

        Done by robots…you ever heard of Wawa fast food joints in Pennsylvania? I would much rather order from a touchscreen than have a third worlder covered in tattoos with gold teeth asking me, “Hey yo? You gun need fries wid dat?”

        • Howard W. Campbell

          I saw those when I was stationed in Virginia, but that was many years ago. To someone not from the area, the name is funny, just as Piggly Wiggly (a grocery store chain) is when you go to Charleston. SC.

    • KenelmDigby

      If McDonald’s goes on strike, the disappointed glutton will just go to the diner, the sandwich shop, the cafe down the street.
      It’s not like all flights out of O’Hare will be cancelled or whatever.
      The sad fact is that ‘McDonald’s workers’ have no industrial muscle, and they should realise this.

      • Luis

        Michigan recently changed its laws to become a “right to work” state. I’ll make book that those striking workers will be replaced by mestizos.

  • libertarian 1234

    I’m sorry, but I can’t believe that there is a black in the entire country that is on a level of knowledge and efficiency necessary to understand and find solutions to a bankrupt city.

    This man is more likely than not an AA appointee to college and was awarded AA grades and certification in academia’s ongoing attempts to foist unqualified blacks into the work place as a method of bean counting for the sake of stemming criticism from the black leadership who claim blacks are discriminated against in academia.

    But the greatest irony in this debacle is that this white weenie of a governor continues on with the charade of expecting a black to straighten out a mess created by blacks which is going to somehow be different than having the ones now in power do the same work he’s doing.

    As with everything these white political weenies do, they continue to try to be politically correct instead of truly trying to resolve an issue.

    And, in the end it looks like the entire state will go right down with their politically correct appointee, which is EXACTLY what they deserve.

    • I’m sorry, but I can’t believe that there is a black in the entire country that is on a level of knowledge and efficiency necessary to understand and find solutions to a bankrupt city.
      There isn’t likely, which is why Kevyn Orr’s appointment is such a farce, done only to appease the blacks of Detoilet.

      • BonusGift

        The only three things you need to know about the black ‘expert’ and the future of Detroit are:
        1) His name is Kevyn not Kevin.
        2) He will not call a spade a spade (i.e., call a bankrupt city bankrupt).
        3) It is >90% black, and run by black people,
        Actually I lied, all you need to know is #3,

    • guest

      From the beginning, I wanted them to get a Chinese-born CPA for that position.

  • White Mom in WDC

    So why aren’t any of the empty suit brutha’s ‘representin’ by donating money to help out this bastion of Afro American culture? Where ‘s BET? Where’s Charles Barkley and Michael Jordan? You know when the old white guys like Vanderbilt made millions, they gave back to society with charity such as building libraries etc. Not As-fro Amurikans.. Hell nah. They just take and bleed culture dry.

  • PesachPatriot

    It seems that Mr. Orr is an incorrigible optimist…Detoilet is not insolvent, Greece is insolvent but they still have impressive ancient ruins, a good beachfront and the ability to feed themselves. The major assets of the Motor City include but are not limited to charred burned ruined automobile factories, boarded up houses with bullet holes in them, rusty cars, and a large population of convicted felons. Detroit is a post-apocalypitc hellscape that frightens canadians who can see it through a telescope….insolvency would be a step in the right direction for that city…

    • Howard W. Campbell

      Driving across the Ambassador bridge from Detroit to Windsor is like going from LA (2029) in the original Terminator movie to a well groomed garden.

      • Will

        Fill Windsor up with enough negroes then it will look just like Detroit in no time at all.

  • Room101

    YT bails out Negroes for endless failure Welfare, again.

  • Michael Mason

    Why can’t we stop judging and just allow Detroit to exist for what it is… an African city.

  • evilsandmich

    last year on a $1.23 billion budget
    Anyone else wonder how a city of 700,000 welfare queens comes up with 1.23 billion dollars? It sounds like they’re already skating by with the goodwill of the Feds and the state of Michigan (suckers).

    • Jefferson

      The small predominantly White town of Malibu has more income tax payers than the entire city of Detroit.

      And Malibu only has 13 thousand people.

  • Paleoconn

    The liberals ruined Detroit. Just look at the video on this site with the neocon pseudo-documentarian. No mention of race in that unintentionally comical video.

    • Luis

      Wrong!!!!! The negro ruined Detroit. The negro ruined Detroit. The negro ruined Detroit. The negro ruined Detroit.

    • Will

      Yes it is true, Detroit was done in by the negro and his negro ways.

  • Luis

    This just in: Detroit mayor Dave Bing will not run for re-election. I give him credit for recognizing the writing is on the wall, and not wanting to be “mayor for life”. Detroit’s next mayor will undoubtedly go hat and tin cup in hand to Obama, begging for a handout. Only it won’t work because Obama will have a year, maybe two, left in his regime to be much of a factor. He’ll also be embroiled in his own problems.

    I may be a lone voice in the wilderness, but if it weren’t for whites spending their money to watch millionaire baseball, football, basketball and ice hockey players, virtually no money would be entering the city.

    Sound “Taps” for Detroit. It’s dead and buried.

    • Will

      Yes, stop spending money on sports so we can clear the negro out of Detroit quicker and then bulldoze the place and turn it all into farmland.
      Once its all farmland the negro will never come back, thank god.