Obama, Michigan in Talks to Free up $100M to Aid Detroit Pension Deal

Matt Helms et al., Detroit Free Press, April 16, 2014

The Obama administration and state officials are in discussions on a deal that would free up an additional $100 million to soften the blow to Detroit pensioners, two people familiar with the talks told the Free Press late Tuesday.

The two sources, who spoke on condition of anonymity because they weren’t authorized to disclose the information, confirmed that there have been talks about the federal government supporting a move by the state to give Detroit $100 million in federal money for blight remediation. That, in turn, would free up $100 million of the more than $500 million that emergency manager Kevyn Orr planned to spend for blight removal over the next 10 years. Orr could then use that money to reduce pension cuts.

The federal funds would come from the Hardest Hit Fund, a $7.6-billion Obama administration effort established in 2010 to help the 18 states most hurt by the housing downturn.

Michigan received $498.6 million to operate homeowner assistance programs, including those offering mortgage subsidies, home loan rescues, mortgage modifications and principal debt reductions.

But as of last summer, only a portion–about $2 billion nationwide and about $94 million in Michigan–had been spent.

It was at that time that the U.S. Treasury allowed the Michigan State Housing Development Authority to use up to $100 million in unspent funds on demolitions in five cities, with the bulk going to Detroit.

The $100 million that’s now the focus of negotiations is separate from the $100 million that was set aside for blight removal in Detroit, Flint, Grand Rapids, Saginaw and Pontiac, the sources said.

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Obama, not keen to set a precedent of the federal government sending money to cities or states with deep pension debts, has publicly said there’s no support for a bailout of bankrupt Detroit.

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Snyder already has pledged the state’s support to send $350 million to the city as part of the grand bargain to help rescue the Detroit Institute of Arts and bail out the pension funds.

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  • Who could have guessed that we would eventually get the bill for Detroit’s bankruptcy party?

    • Dave4088

      Obama is so fair minded, fiscally responsible, apolitical and aracial that I totally did not see this coming.

      • John R

        Pardon me. sir, but if I didn’t know better, I would almost detect a bit of sarcasm in that comment.

    • Where does Detoilet think their money is going to come from three years from now? Waitaminute… blacks don’t plan for the future… my bad. Never mind.

    • IBWHITE

      I’ll bet Chicago will eventually be bailed out by the taxpayers too. The city and entire state of Illinois is in serious financial trouble.

  • Truthseeker

    Consequences? What consequences? If we screw up, the government is obligated to bail us out!

    • coco bongo

      Only if you are the correct color.

    • Moral hazard?

      No way baby. It’s too black to fail.

  • NOT a bailout? Think again. Honesty must cause Obama and company to break out in hives. That’s why they never tell the truth.

    • dukem1

      O and company DO tell the truth! Everything they say is taken to heart by the “people” to whom they are speaking.
      Preachin’ to the choir here, but does anyone think there is a critical mass of citizens in Detroit capable of any type of intellectual analysis of how they got where they are?
      All they hear is what they have heard for the last 30 years…”Someone will take care of things…somehow…just gimme dats…I deserve it!…YT bad…he owe me…even Preezy know dat!”

      We are doomed.

  • coco bongo

    uh huh, this is simply a wealth transfer from white tax slaves to Obama’s people.

    • Dave4088

      White people have been reduced to tax paying animals.

      • D.B. Cooper

        They did it to themselves. They have become lazy because grandpa and grandma did all the work for them.

        • So CAL Snowman

          Grandpa was out battling his European brothers in the White Holocaust known as World War 2, fighting for the freedom of blacks and browns to destroy his country and his race.

          • bilderbuster

            And Granny was voting FDR as President For Life and would have voted him a fifth term.

          • Garrett Brown

            Punisher! *fist pump*

        • Extropico

          Grandpa and grandma fought to make their own progeny into a minority who would struggle to find work and now pull Sheldon Adelson’s slot machines with social security money that may not be there for their grandchildren.

  • Dave4088

    I’m sure the fact that almost all of Detroit’s pensioners are black has a little something to do with the bailout. Expect bailouts, mini-bailouts and federal funding every 2-3 years from this point forward.

    • coco bongo

      Being Bantu or Zulu has advantages.

      • bilderbuster

        It’s known as “Black Privilege” and all Blacks have it.

    • Jesse James

      The Detroit government pensioners are exactly the people who mismanaged and stole so much that they wrecked their city government in the first place. There shouldn’t be a nickle of federal tax payer’s money given to them until their pensions are restructured and reduced.

      • IstvanIN

        It was the politicians who mismanaged the city, not the rank and file civil servants. So take the pensions away from the politicians and appointed bureaucrats but leave the little guy alone.

        • Jesse James

          I have to disagree Istvan. I have watched black sheenanigans in the Atlanta metro counties all of my life, let me recount just a few from low level “civil servants”: Massive gas thefts by anyone with access to government cars. Blacks literally filling up relatives cars on the government dime. Theft of metals and supplies with maintenance departments being particularly prone to relatively long running and semi-organized theft rings. Various schemes to embezzle petty funds. Massive black nepotism in hiring at MARTA, little to no supervision and little to no work done by many employees. The most useless being MARTA “security” officers. Deliberate sabotage of operations and equipment. Massive abuse of sick day policies. Abuse of overtime pay, especially completely false overtime claims. No it is not just the politicians, their voter base within the black civil service are notorious for their bad behavior and criminal activity.

          • Jesse James

            Brenda Watts, the face of the black middle class in Atlanta. A school cafeteria manager who can afford to live in a McMansion with five bedrooms and 5,400 square feet of luxury accommodation.

          • IstvanIN

            I stand corrected.

          • We had a nice house when I was little, but even on a university physics professor’s salary, it wasn’t that big. My townhouse is less than half of that 5400 square feet, and that includes the unfinished basement.

          • IstvanIN

            I stand corrected..

    • Martel

      The Appalachians never crossed his mind.

  • Tarczan

    It’s the right thing to do, and it only requires putting a few zeros into a computer. You knew this was coming.

  • So CAL Snowman

    So when this $100 million fails to fix anything at all, how much more are they going to ask for next time? This will never end, Detroit will continue to ask for hundreds of millions of dollars until Doomsday hits.

  • Jesse James

    Oh hell no, now we have to bail out every corrupt incompetent black municipal government in the country? There isn’t enough Obama stash money in the universe to cover the costs even if they took every nickle we make from us.

    • Alexandra1973

      Don’t worry, they can always just print up more money.

      • IstvanIN

        Put some ink in the Gestetner and lets crank out some money.

        • Jesse James

          Here we go doing the Weimar shuffle again.

        • Lt. Greyman, NVA

          Eng: But Cap’n! The Printers are giving all they got! If I push them any harder in the shape their in, they’ll blow apart!

          Cap’n: Scotty, push it right to the edge! We got to have more money!

    • Eventually the system has to collapse. Taxpayers are not reproducing at the 2.1 kids per couple replacement rate, and tax-recipients are reproducing at well beyond the replacement rate. Obviously we will reach a point where there are simply not enough productive people to support the gibsmedat welfare programs, the fake, make-work government jobs (really just another form of welfare), and a government that insists on playing “Santa Claus” with our money all over the world.

      Attempts by the government to raise taxes and seize assets will actually accelerate the collapse, because anyone with enough sense to have earned and saved a substantial amount of money in the first place is also – pretty much by definition – bright enough to offshore it.

      • The US Gov’t has recently signed tax agreements with other industrial nations. If you make money in Brazil, or many other places, it’s reported to the IRS so the US Government can seize it.

  • JSS

    “It was at that time that the U.S. Treasury allowed the Michigan State Housing Development Authority to use up to $100 million in unspent funds on demolitions in five cities, with the bulk going to Detroit.”

    The treasury has $100 million in unspent funds laying around? Who knew? So we have a surplus now? Good to know. For real, our monetary system has to go. It is the biggest enabler of corruption and filth known to man brought to you by you know who from the deli. No more of this fiat usury garbage when we have our own nations again.

    • Malgus

      Very soon, the US economy and the fiat dollar will cross the Event Horizon of Debt and vanish into a black hole… no pun intended. It’s gonna get ugly. The movers and shakers will see it coming long before the rest of us, probably because they’re the one who caused it. Joe Baggadonuts won’t see it coming until it’s too late and a can of beans costs $50.

      Think NOLA just after Katrina, but in every city in America…

      Alaric and the Visigoths sacked Rome. We have our own Visigoths. We pay them to reproduce. When those EBT cards start flashing “ERROR”, I guarantee you that you will see something you haven’t seen before…

      • striket3

        I think that day is coming. The sooner it gets here the better.

      • Before FDR took the US off the gold standard, those politically connected with his regeime were in the know. They exported millions of gold coins (at $20/ oz) to Switzerland. Today this has caused a large supply of certain dates of US gold standard coins in uncirculated condition. Examples are the 1904 $20 gold Liberty, 1927 St. Gaudens, 1901-S $10 gold Liberty, 1932 $10 Indian, & etc. Of course you still have to pay hundreds or thousands of $ for them today, but they are available.

        Immediately after that gold nearly doubled to $35/ oz in 1935.

        Interesting that every US currency devaluation is associated with a Democratic President.

        • Malgus

          If I remember my history of totalitarian statist thugs, FDR outlawed the ownership of gold bullion via Presidential Fiat, then bought up all the bullion at $20/oz. When they had collected all they figured they would, they declared the price of gold to be $35/oz, giving the US Govt. a very nice raise and more wiggle room for spending on useless social programs…

          And I don’t doubt that those in the know, close to that evil old cripple FDR, had their own stash of gold and were allowed to export it all to Switzerland.. crony bastards that they were. I would even go so far to opine that FDR smoothed the way for them in return for some under-the-table payola… I can’t prove it, but it fits his character (or lack thereof)…

          I would agree with you re: currency devaluation associated with the Dems, except for when Nixon broke with the Bretton Woods Agreement and separated “temporarily” the dollar from gold… mostly to screw over the French. The French were worried about us overspending on the war in Vietnam (and we were) so they called in all their gold-backed dollars… which would have broke us. Nixon responded by giving the French the finger and broke from gold, which sparked our current cluster-f*&^ with crony capitalism and wildly devalued currency… in 71, our debt was 400 billion (how quaint). Within 10 years, it was one trillion. 10 years after that, it was several more trillion… and on, and on…

          You hear that big flushing sound? 🙂

  • Who Me?

    Oh please, Detroit is done. Escort the last 13 White people living there out, stick a fork in it and build a high fence around the outside. Air lift in cases of submachine guns at evenly spaced intervals, add plenty of ammo and let them have at it. In about 2 weeks nothing will be moving, then we can go in, mop up and reclaim what’s left.

  • MekongDelta69

    They’re ‘saving’ a hell hole, but destroying ever institution which used to be good.

  • Jacqonta Green

    dis a good idea keep throwin money to ma bruthas

  • Tom Mixx

    $1000,000,000 will disappear down the black hole of Detroit in two shakes of a lambs tail and never be seen or heard of again.

    • Who are you kidding? That money will be right back into the economy after it is spent on bling, booze and drugs.

  • RHG

    well of course, have to do everything to prop up a failed Democrat run, black run city.

  • RHG

    Have to make sure that the blacks that ran this city into the ground continue to receive their overblown pensions.

    • bilderbuster

      That was their job to run Detroit into the ground and they did it so now they will get paid for doing it so well.

  • Adolf Verloc

    “Blight removal?” The best idea I have heard for contemporary Detroit has been to raze massive areas of the city and build urban farms.

    • Alexandra1973

      Get rid of 80+% of its population. Deportation, anyone?

    • bilderbuster

      That would require farmers with an IQ high enough to know better than to plant crops like popcorn or plant watermelon in the winter.
      Good luck finding them in Detroit.

  • 2eRep

    More “gibsmedat” from the magic negro. Rewarding failure.

  • TXCriollo

    When will delta city happen? Probably the best idea for detroit

  • FozzieT

    Bless my heart, it makes me so proud and patriotic to know that a portion of my taxes are going to guarantee that some worthless, Negro bureaucrat in Detroit gets her pension.

    It gives me the warm fuzzies, when I imagine said Negro bureaucrat, hard at work in her cubicle….golden-colored cornrows in her hair, 285 pounds, 3-inch long fingernails…

    I imagine calling her to ask about my water bill…

    “Water depahtmen’, Shaniqua speakin’.” (I picture her filing her nails as she says this).

    “Ummm…yes, Shaniqua, I have a question about my water bill?”
    “Hold please.”….click.

    Thank the good Lord above that hard-working Shaniqua will get her pension for life.

    Of course, I personally do not have a pension, but I do not contribute to the greatness of this country nearly as much as Shaniqua.

  • MBlanc46

    I wonder if this is intended as a precedent for Our Leader to send hundreds of millions (or billions) to bail out his buddies in Chicago and Springfield who have monumental deficits in pension funding.

  • Malgus

    Aaaand the Free Shyte Army marches on… so happy my taxes can go to bailing out the FSA and help fulfill the empty promises made to them.

    At this point, the only thing that will be effective at “blight removal” would be a bunch of JDAM’s or MOAB’s… it’s not like we don’t have any. I bet they’re stacked up like cordwood, left over from Afghanistan…

    Drop a bunch of ’em and when the itty bitty pieces of “blight” stop raining out of the sky, send in the bulldozers…

  • Diamond_Lil

    I grow weary of bailing out the darkies.

  • TXCriollo

    Robo cop 2 was telling us something

  • Rodney S

    Most Detroit municipal workers receive pension benefits for far longer than they actually worked. I know an 80-year-old Detroit fire chief who retired when he was 50. Must be nice. One of the requirements of the pension deal should be that retirees must live in Detroit. haha!

    • willbest

      Maybe your pension gets cut by 30% if you leave Detroit, and 50% if you leave the state.

  • Epiminondas

    “…a deal that would free up an additional $100 million…”

    Because, you see, that money is at the moment “enslaved” in the pockets of white men. It needs to be “free”.

    • willbest

      In fairness, some banker or insurance company is probably going to lose tens of millions of dollars if this aid doesn’t come through.

      • benvad

        Whites will end up paying for it.

  • Earl Turner

    As the old skit on ‘In Living Color’ used to go: “mo money! mo money! mo money!”

  • John R

    If I were the president, this is what I would do. “Vladimir Putin, you had better stop immediately in your attempts to undermine Ukrainian sovereignty, we in America will defend Ukraine. I am not afraid of you, or your military, or nuclear capability. I defy you to try and attack the United States. Why don’t you dare drop a nuclear bomb on the seat of America’s auto industry, Detroit? I dare you to do that. You won’t because, Mr. Putin, you are really a coward. And if you were a man you would have destroyed Detroit, by now.” There, that would solve the problem, asap!

    • I also think the photos of him bare-chested on horseback made Putin look gay, but Mr. horse-queen still doesn’t have the guts to nuke Detroit, especially not with an R-36MUTTH because he’s just a sissy.

      • John R

        Shoot! There goes my plan!

      • IstvanIN

        I don’t think he looks gay, but those photos do seem very staged and odd, at least to a westerners eyes. Remember Russia isn’t really part of the West.

  • The automakers have also mostly moved assembly operations to southern, right-to-work states.

  • striket3

    Why can’t black taxpayer money go to fund black pensions? Better yet, why can’t black taxpayers money go to welfare or any other entitlement for other blacks. I shouldn’t have to pay for shannanas 8 illegitimate kids.

    • N’DeShawntavious and the other seven fathers aren’t going to pay, either, partly because five of them are currently incarcerated.

  • Apparently “blight removal” would be to replace the current blight with a new form of blight, since today when anyone moves into the slums of cities like Detroit, Chicago or Oakland and applies a coat of paint and plants a few flowers in the front yard, they are guilty of ‘Racist gentrification!’

  • Pro_Whitey

    Nice slush fund, BO! The “Hardest Hit Fund”. Hardest hit by black dysfunction, that is. I’m sure I’m not the first to say it, but blacks put the funk in dysfunktion!

  • Rodney S

    I live in the Detroit burbs. I would gladly give up a year’s pay if the money went to relocating Detroit blacks back to the Congo. In the long run, I’d save money and my safety, property value and quality of life would skyrocket. It would be the most sensible, cost effective form of “blight removal” ever!