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| Economy |
| Detroit May Run Out Of Cash Next Month |
| 2013-05-13 |
| Another day, another US city on the brink of insolvency. This time it's Detroit, whose recently appointed emergency financial manager Kevyn Orr said may run out of cash next month and must cut costs such as long-term debt and retiree obligations. According to Bloomberg, "Orr’s report says the cost of $9.4 billion in bond, pension and other long-term liabilities is sapping the ability to provide such basic services as public safety and transportation. He listed cutting debt principal, retiree benefits and jobs among options he may take. “No one should underestimate the severity of the financial crisis,” He called his report "a sobering wake-up call about the dire financial straits the city of Detroit faces." Funny, the above bolded sentence, because we have long since crossed into a stage where absolutely everyone is underestimating the severity of the financial crisis, which incidentally is long over if one listens to the broader media. As for Detroit, may we suggest the same medicine that the "expert economists" prescribe for every other instance of overlevered insolvency: just issue more debt. Surely with worthless Greek bonds soaring, there must be some Japanese investment funds that can't wait to buy up all that paper on nothing but promises of untold riches courtesy of the endless carry trade that apparently can do no wrong. Then again, Detroit may not be Greece: |
| Posted by:tipper |
| #8 "Another day, another US City on the brink of bankruptcy. This times its Detroit ..." Once again, Boyz, wid feeling - AGAIN-N-N-N??? Yet another reason why the US = POTUS Bammer Admin may NOT be able to intervene + defend its overseas allies despite what the various Mutual/Collective Security Treaty(s) say??? Its not even Year 2015-2020 yet, + US Debt is already nearing US$17.1 Trilyuhn which IIRC wasn't supposed to be reached until circa 2017-2018. Remember, China desires Guam + Hawaii + 1/2 of CONUS-NORAM - IOW, THE US LOSING ROUGHLY ONE-HALF OF THE PACIFIC IS JUST FOR STARTERS. |
| Posted by: JosephMendiola 2013-05-13 23:30 |
| #7 "Yawn" |
| Posted by: Skidmark 2013-05-13 20:20 |
| #6 seems like this is the new way too demand more welfare from the fed. government. |
| Posted by: chris 2013-05-13 18:52 |
| #5 Have'm take up a collection in Zambabwe Dollars |
| Posted by: Shusose Fillmore2869 2013-05-13 18:42 |
| #4 Welcome to "Eutopia". |
| Posted by: Thaique Squank4053 2013-05-13 17:00 |
| #3 Only the parasites will notice. Everyone else ran out of cash years ago. |
| Posted by: Iblis 2013-05-13 16:48 |
| #2 Detroit May Run Out Of Other People's Cash Next Month FIFY |
| Posted by: Mullah Richard 2013-05-13 16:01 |
| #1 Note the weird way thwy have of putting it, like it's an unavoidable expense, and not a REQUIRED PAYMENT. |
| Posted by: Redneck Jim 2013-05-13 15:59 |