Detroit said Friday it would stop making payments on about $2.5 billion in unsecured debt and ask creditors to take about 10 cents on the dollar of what the city owes them in a move to avoid what bankruptcy experts have said would be the largest municipal bankruptcy in U.S. history.

Detroit Emergency Manager Kevyn Orr spent two hours with about 180 bond insurers, pension trustees, union representatives and other creditors outlining his plan for the city’s financial future, which includes a moratorium on some principal and interest payments, Reuters reported.

Under his proposal, underfunded pension claims likely would get less than the 10 cents on the dollar.

An assessment of the plan’s progress will come in the next 30 days or so.

Orr also announced that Detroit stopped paying on its unsecured debt Friday to “conserve cash” for police, fire and other services in the city of 700,000 people. The debt not being paid includes $39 million owed to a certificate of participation.

{snip}

The team also said the proposal presented Friday is the one shot to permanently fix fiscal problems that have made the city insolvent.

{snip}

Detroit’s fiscal nightmare didn’t occur overnight. It’s been decades in the making as city leaders took out bonds at high interest rates to pay bills Detroit’s general fund couldn’t cover.

{snip}

The city’s budget deficit could top $380 million by July 1. Orr believes Detroit’s long-term debt is more than $17 billion.

The Washington-based bankruptcy attorney hired by Michigan in March reiterated that the chances of bankruptcy are 50-50 for Detroit, the largest U.S. city placed under state oversight.

{snip}

“The firefighters are going to do what we can to keep the city stable now,” Detroit Fire Fighters Association President Dan McNamara told reporters after Friday’s meeting with Orr.

McNamara said creditors were told by Orr that “we’re in a death spiral.”

{snip}

On Friday, Moody’s Investors Service downgraded a number of Detroit bonds, including its general obligation unlimited bonds. As a result, all Detroit bonds are now below investment grade.

Hetty Chang, a vice president with Moody’s, said “the emergency manager’s proposal to creditors indicates further debt restructuring.”

“We also believe the city’s risk of bankruptcy has increased over the last six months,” she said in a statement.

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  • bigone4u

    Do blacks ever repay loans, anytime, anywhere? Hmm. Thought not.

    • Strider73

      The word “loan” translates to Ebonics as “free loot from whitey.”

      • Bobbala

        What did kemosabi mean again?

        • me

          Kemo Sabe comes from the Tewa Indian dialect where “Kema” means “friend” and “Sabe” means “Apache.” Another scholar claims that in the Yavapai Indian language the word “kinmasaba” means “one who is white. I’m betting on the latter…..although I would add,
          ‘sucker!’…….

          • Sherman_McCoy

            What you mean “WE,” paleface?

    • The__Bobster

      Do Afreakan nations ever repay the money we loan them?

      • me

        With all the money we’ve poured into Africa, we could have done something useful with it….like cure cancer…..go back to the moon…..colonize Mars…ship American Blacks back to the motherland…..

        • Sherman_McCoy

          And what about the trillions we’ve wasted on them here?

          • Bon, From the Land of Babble

            Trillions? Wait until obamacare hits…or the new amnesty…

            “Trillion” will become the new billion. By next year, most likely, we’ll be talking about quadrillion and sexillion.

            If Zimbabwe can print a One Hundred Trillion Dollar Bill, then so can we!!

            What the hell, none of it is real, it’s all fiat — FAKE — money…

            Bon

          • Gibs me elebenty seben gazillion dollars for me and my fambly, or else I be quitting working. Gnome sayin?

    • White Mom in WDC

      Big one. Trying to connect. Hit the blog Countenance and ask to connect with me

      • Bon, From the Land of Babble

        Is Countenance running a dating and hook-up site now??
        LOL

        Bon

        • I still love you Bon, even if nobody else does.

          • Bon, From the Land of Babble

            LOL. Who needs to talk about hook-ups when you’ve got fresh-picked black raspberries waiting for you??

            The new fence my neighbor put up destroyed my berry patch in the “way back” yard. Not a single one survived — and I had a ton of boysenberries setting on…There’ll be NO boysenberry OR blackberry cobbler this year, unfortunately. The black raspberry is in the front, invasive and covered with fine thorns that are more akin to needles. The berries are always set far back inside a tangle of branches which usually means major scratches — can’t pick berries wearing gloves, they’re much too delicate, lol.

            In the end, it’s gonna be me and you left, my friend, after World War Z.

            There’s at least ONE person on this forum (besides you) who loves me!!

            You too, it seems:

            Irishgirl: to Bon, From the Land of Babble • a day ago

            I’d love to get together for coffee sometime with Bon and Mr. Scott.

            Here’s my reply:

            Bon, From the Land of Babble to Irishgirl • 11 hours ago

            You would certainly be safe with the two of us.

            10 Greatest Firearms in History:

            1. Colt 1911 .45 ACP

            2. AK-47

            3. Henry Repeating Rifle

            4. Colt Single Action Army Revolver

            5. The Mauser Model 1893 Bold Action Rifle

            6. Smith and Wesson Model 20 .44 Magnum Revolver

            7. .50 M2HB “Ma Deuce” BMG

            8 .303 Lee Engield

            9. Glock Handgun

            10 MG-42

            Personally, I’m partial to the “Ma Deuce.”

            Bon

          • Mauser 1898 – not 1893.

            M-14

            FN-FAL.

            What really gripes me about not being allowed to shoot is that just before my arrest in July 2000 I had a line (no pun intended) on a 37mm harpoon gun. It could use blanks for shooting harpoons at whales or seals, slugged shells for shooting polar bears, or buckshot for use on people. I imagine a 37mm would hold a lot of 00 buckshot. The case was just a shortened version of the old rimmed 37mm Hotchkiss “Pom Pom” round. I imagine a nose-fuzed HE shell would do a vehicle a real treat. I could machine the bodies out of aluminum with their own rifling, like some shotgun slugs, or just fin stabilize them.

            Newspaper headlines: “Home Invader Shot With Ginormous Harpoon Gun in Colorado Springs. Harpoon Guns Now ‘Weapons of Choice’ For Drug Dealers. Sarah Brady: ‘When Will the Madness End?’ Details at 10:00.” (Cut to scene of a MAC-10 firing at full automatic).

            Even back in the day, I didn’t imagine there would be much chance of my getting my own 57mm, 82mm or 90mm recoilless rifle, but I really wanted that harpoon gun. I would sleep better knowing that if the contemplated walrus takeover is attempted, my neighborhood would be safe from our evil walri overlords.

          • Sherman_McCoy

            Mmmm. Boysenberries!

      • bigone4u

        Found the blog. Am I supposed to fill in the “contact me” form?

        • White Mom in WDC

          yes

          • bigone4u

            done

    • CharlesFinley

      I worked with a groid who said, “I ‘on’t pay my phone beeill. It phuck wif my git-high money.”

    • KenelmDigby

      Yup.
      That’s how they crashed the entire World economy with their mortgage meltdown.
      And look how catastrophic the Bush adminstration’s insistence on ‘equal opportunities’ end up in that instance. As one consequence, White American death rates exceed birth rates – and it will probably stay like that for good.

    • JackKrak

      If this had happened in a city that had voted for a Republican since the Stone Age, it would be the headline and lead story in every media outlet for the next month. It’s hilarious – or is it depressing? – that no one can even ask “How did this happen?” in “respectable” media since the answer is so completely obvious to even the most lefty Leftist.

    • sbuffalonative

      Detroit’s fiscal nightmare didn’t occur overnight. It’s been decades in the making as city leaders took out bonds at high interest rates to pay bills Detroit’s general fund couldn’t cover.

      Taking out high interest bonds is only a symptom. The problem here is the people who didn’t have the foresight to consider the long-term consequences.

  • A private business that defaulted on so much debt to avoid bankruptcy would be forced into bankruptcy court.

    • Unless it was an automaker that employed too many blacks …..

      Did that happen in Detoilet too?

      • me

        The recent statistics prove that over 90% of government employees are ‘affirmative action’ minorities. A thought to ponder while you’re waiting for three hours at the DMV…..

  • “We’re in a death spiral.” This started back in the 1950’s.

    • Paleoconn

      60s. The black riots under lousy mayor Cavanagh, then a never-ending parade of corrupt megalomaniacal black mayors, and other black govt officials.

    • me

      “We’re in a death spiral! Mayday! Mayday! Send us more ‘gibs’!

  • Ho hum. Didn’t I read this story 10 years ago?

  • I think we all knew what was going to happen when Detroit hired an Affirmative Action attorney as its Emergency City Manager.

  • haroldcrews

    What is the potential for using race realism in an investment strategy? If anyone shorted Detroit bonds they stand to make a killing. The same can be said with Birmingham and most likely also Memphis and St. Louis. Starting to wonder what potential there could be in betting against Chicago. HAHA. There is immense potential in the destructive power of BRA.

    http://www.cnbc.com/id/41513958

    • haroldcrews

      Besides debt levels; length of Black political domination; levels of corruption; and levels of Black population as a percentage what other factors ought to be taken into account in betting against a city of BRA?

      • haroldcrews

        Then there are also the factors of at what rate are government revenues declining? Whether there is a remnant business base? Are there any outlying communities susceptible to being annexed? What is the percentage of vacate property to occupied property?

        This is an interesting intellectual exercise.

      • Spartacus

        I’d guess White Flight is something that should be taken into account. The situation gets worse the fewer white people there are.

    • Charles_Peterson

      You can only short something if it’s actually offered. Unless your paulson, bernanke or an insider, a person doesn’t have a chance at shorting anything.
      The second part is that they can demand that you buy the stocks at any time they want. Let’s so a surprise uptick.

      If someone wanted to invest in government bonds they should do it in a state like Pennsylvania(reference only) where it is illegal to default.

      • haroldcrews

        I suggest you read the article to which I linked. Certainly muni bonds can’t be conventionally shorted but that doesn’t mean that you can’t bet against them. You have to short those entities that are most exposed to the risk inherent in the bonds of a Black dominated city.

        • Strider73

          That article is more than two years old, but it does provide a starting point for bearish speculators. You would have to research all the muni bond ETFs and closed-end funds, then short those that have the most exposure to BRA sewers like the ones you mentioned.

          IIRC, there are also a lot of single-state closed-end funds. Most hold bonds from high-tax states so that residents can shield the interest from state income tax. Many such states also have high BRA levels (IL, MI, NY, NJ), so shorting those funds could prove profitable.

          Too bad the government would never let a savvy race-realist fund manager create “black bear” ETFs that followed the above strategies.

          • The ETF I wanted to create was similar to your “black bear” fund. It was going to be a short fund of companies who were led by blacks.

          • me

            What were you going to name it, since “black bear” was taken?

          • robinbishop34

            broke bear

          • The SEC would poop its britches if someone did that, but it sounds good to me. Short selling NY and NJ sounds like great fun.

  • MekongDelta69

    Wait. Wait. Wait. I’m trying to care. Trying. To. Care.
    .
    .
    .
    Nope. Sorry – I don’t care.

    • Romulus

      Thanks friend, I needed a good laugh.

    • Bobbala

      You know your paying for this, right?
      You volunteered.

      • me

        Your choice of forced charity through taxation or prison time is not “volunteering”….it’s called coercion.

        • Sherman_McCoy

          I’d call it “slavery.”

  • Romulus

    If i recall correctly, wasn’t the city council either indicted or arrested not to long ago!? In any case DHS has shown that it can lock down a city (boston) if it has to, thanks to the two borats(to borrow another posters very pithy description). Nothing surprises me anymore when it comes to detroit,baltimore,chicago, etc.

  • The__Bobster

    Detroit said Friday it would stop making payments on about $2.5 billion in unsecured debt and ask creditors to take about 10 cents on the dollar of what the city owes them in a move to avoid what bankruptcy experts have said would be the largest municipal bankruptcy in U.S. history.
    ______

    A dime on the dollar? Really? Why don’t they just string this out a little longer and offer nothing?

    And how do they get back into the bond market after this? Who would be stupid enough to loan them money?

    • Bobbala

      Who WAS stupid enough …

    • evilsandmich

      Anyone dumb enough to lend them money deserves to get nothing.
      Probably the only reason they were able to secure any loans at all was because investors thought that they were TBTF and that the state of Michigan would bail them out, oops!

    • Ammmmm…. er…. China?

      No. They have as little sense of humor when it comes to money as I.

      Dey gots ta be haben dat, gnome sayin?

  • Bon, From the Land of Babble

    Mr. Orr’s plan provides for shared sacrifice among all creditor groups…in order to return Detroit to a sustainable financial foundation and to permit much-needed reinvestment in the City.

    Detroit: Population: 17,000. Debt: $17 billion

    Reinvestment in the City? What idiot( besides Suzy Orman) would invest in new bonds? And who would lend $$ to Detroit? Federal Bailout coming in 3…2…1…

    provides for shared sacrifice

    “Shared-Sacrifice” = The taxpayers sacrifice.

    We taxpayers have sacrificed enough already!! The residents of Detroit have done nothing except vote continually for radical leftists and the communist economic policies that have run Detroit into the ground, let THEM figure it out, it’s THEIR turn.

    Underfunded pension claims likely would get less than the 10 cents on the dollar

    Repeat in Philadelphia, Chicago, St. Louis, Los Angeles, the entire state of California…

    http://www.foxbusiness.com/government/2013/06/11/california-on-brink-pension-crisis/#ixzz2WOjpWwzJ

    Bon

    • me

      Where did all of that $17 billion go? There isn’t enough skittles, crack, pot, and forties in the world……

    • Stop working. I figured I’m not going to pay for this “stuff”. They can go get their money from someone else.

    • Seventeen thousand “folks” owe $17 billion? They wouldn’t be worth a million bucks each, even if we broke them down for transplant organs: too much HIV and Hepatitis C,D,E, F and G.

  • Bobbala

    What is a “certificate of participation”? I probably don’t really want to know.

  • IstvanIN

    Doesn’t the mayor have an EBT card he can use to pay off the debt with?

    • EBT?

      Wasn’t that a Jackson 5 song?

      E-B-T, easy as 1-2-3.

      • me

        LOL! Now that darn song is stuck in my head….with your lyrics!

  • Transpower

    Cut the damn government pensions 10 cents on the dollars!

    • Non Humans

      Cut the welfare, ebt, etc to $0.05 on the dollar.
      .
      Why are the libtards so enamored with supporting and enabling uselessness? Guess they don’t refer to libtardism as a disease for nothing…

  • WhiteGayMale

    The state of Michigan needs to take over the city of Detroit. Either that, or the city of Detroit needs to be dissolved.

    • IstvanIN

      What would the state do with it?

      • WhiteGayMale

        The state can try to salvage the city as best they can. Actually, I just read that they did, indeed, take over the city a couple months ago:

        http://www.reuters.com/article/2013/03/14/us-usa-detroit-emergency-snyder-idUSBRE92D15S20130314

      • Sick of it

        Burn it to the ground and start all over?

      • me

        Build a fence around it and use it for another “Black Achievement” museum.

        • Erasmus

          Put a fence around it and use it as a holding pen for illegal aliens.

          • Build a fence around it and the nuke it.

          • Irishgirl

            Bad idea, Michael: nuclear fallout does not respect borders.

          • I used to work with heinous chemicals, and at age 47, I still look like I could be 25. A really big nuke blows the fallout up high enough into the stratosphere that the really “hot”, very dangerous, short-lived isotopes have had time to decay before returning to earth and water. An airburst also does not vaporize and then neutron-activate as much material from the ground as a ground burst, which by definition will excavate a crater and vaporize the soil and rock from it. For wood-framed houses, all one really needs is an airburst; the firestorm – as at Hiroshima – does most of the work.

          • Irishgirl

            I stand corrected.:)

    • evilsandmich

      They should go with my plan and surrender that territory to Canada.

      • Sick of it

        The Canadians would refuse.

        • cancerous bananna

          Doesn’t Toronto already pay Detroit to dispose of its garbage? Rather than pollute an abandoned mine in Ontario???

      • me

        evilsadmich,
        Why do you hate Canada?

  • tickyul

    They are going to SHAFT 1st line creditors……Just like GM did.

    • evilsandmich

      They’re so broke, everyone will get a shot at the shaft.

  • White Mom in WDC

    Basics of black business planning: get federal money, get MORE federal money, spend it all, ask for more federal money, spend it all, go bankrupt.

    Budget? What budget?

  • Sick of it

    If I changed my name to Detroit, could I default on my student loans?

    • Not sure, but you could sit on de toilet and default.

    • me

      Detroit Lucevious Johnson Garcia…….now you may default.

    • Student loans can not even be cleared via personal bankruptcy.

  • robert

    If the black citizenry were made private property, they could be sold to the highest bidder and the bankers could be paid in full.

    • Non Humans

      I think that you’re giving them (nonhumans) a bit much credit in regards to their worth.
      .
      I bet if you created an organization for anonymous contributions to fund sending them all to any other continent, you would receive excesses of donations sufficient to pay off Detroilet’s debt after sending them all away.

    • me

      Tried that, but it didn’t work….just caused HUGE problems.

      • WR_the_realist

        I agree with that. Slavery is not only immoral, but it always causes more problems than it solves. I like the bumper sticker that says, “If I had known what would happen, I’d have picked my own cotton.” Besides, who would pay anything for a citizen of Detroit? Would you want such a person in your home or your place of business?

        Decades from now the descendents of the current advocates of illegal immigration will have bumper stickers that say, “If I had know what would happen, I’d have mowed my own lawn.”

        • Strider73

          Re-read the 13th Amendment, Slavery is still legal, provided it’s a sentence for a criminal conviction. So instead of locking the Bantus up at taxpayer expense, force them to work for a set time period as their victims’ slaves. It would be up to the victims to decide if they want to pay the Bantus anything.

          As an alternative, the Bantus could be forced to work menial jobs on the outside, with all of their pay going to the victims as restitution. To prevent escaped or violence, their guards would have shoot-to-kill orders

  • joemcgee

    How is defaulting on $2.5 billion of debt not considered bankruptcy?

  • Vito Powers

    Here’s a thought – grant amnesty to Illegal Immigrants on the condition that they relocate to Detroit. As we all know, they have family values and start small businesses. These perfectly-pure-and-wonderful people will revitalize Detroit back to its former greatness.
    What could possibly go wrong?

    • evilsandmich

      As long as they wall it up first a’la Escape from New York so that we can watch the ensuing hilarity safely from our own home.

  • John Smith

    Correction, you’re in a modern liberal death spiral.

  • Alexandra1973

    Seems to me Detroit’s been in a death spiral since the 60s if not sooner.

  • NeanderthalDNA

    Encouraging White people to network, socialize, “hook up” and reproduce???

    Sounds racist to me…

    I’m in!

    • Oh no! Not another dating site in which people can say they like “travelling” when they really mean they bring their problems with them wherever they go, or that they like “meeting people” when they really mean they go through a completely new set of friends every six months, or that they’re “career oriented” which means they’re bitter and drink too much.

  • I never had one. When I was in federal prison at the Federal Medical Center at Fort Worth, TX, doctors there did exploratory surgery and discovered that I do not in fact give a rip about Africans.

    The results are sadly very classified and extremely moderated, but there is something “different” down there they decided to leave completely alone.

  • WR_the_realist

    Isn’t defaulting on your debt the definition of bankruptcy? So how can defaulting on your debt avoid bankruptcy? It’s not that I fell sorry for the bond holders getting stiffed — only a complete fool would have bought Detroit’s debt in the first place.

    But watch our federal politicians bail out Detroit at the last minute. Otherwise they would be called “racist”.

    • If you as an individual rack up too much debt, you can file for personal bankruptcy, and your creditors will have to settle for what you can pay. Note though that lying or concealing assets in bankruptcy is instantly federal felony fraud. If you rack up too much debt and then tell your creditors to go kick rocks, you are in default.

      I hope this helps.

  • I think it is a great idea, right up until someone gets hurt, and then AmRen gets sued up one side and down the other. It’ll never work.

    My sister likes college-educated cowboys and is a racist, but even though she’s 45, if someone hurt her, I’d kill him in half. Knowing what it would cost me would make it worse for him. He’s good to her, though.

  • Like I said, a walrus is *almost* as fat as a Samoan.

    • Bon, From the Land of Babble

      My reply to you took over 10 hours to appear. This seems to be happening a lot lately. I have posts awaiting moderation at the moment — while others appeared immediately.

      How about one of the moderators explain what is it that causes a comment to go into the moderation pile (some never to be seen again) when I have broken none of American Renaissance’s posted commenting policies and am a registered Disqus user.

      If there are more, hidden policies that merit moderation how about posting them instead of leaving us to wonder and guess as to why some of our comments appear immediately, some appear hours later and some are disappeared.

      Bon

  • Perhaps, but I owe absolutely none of it.

  • Joseph

    Just import more Hispanics to freshen that economy right up. That’s what Rubio would recommend.