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View Diary: Detroit files for bankruptcy, heightening uncertainty for residents, workers, and retirees (80 comments)

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  •  that's 18 billion of debt, not an 18 billion (5+ / 0-)

    net asset deficit.  a big part of the problem, nonetheless, is that the tax base has drastically shrunk, and collections are only around 60% of what is owed.

    •  exactly (2+ / 0-)
      Recommended by:
      ZenTrainer, falconer520

      And I bet banks are the biggest ones not paying taxes on the houses they now hold, by playing foreclosure games that sidestep the system.

      Go ahead and call whoever you want a journalist or not. I can still decide for myself who's in the 5th estate.

      by jcrit on Fri Jul 19, 2013 at 08:28:41 AM PDT

      [ Parent ]

    •  johnny - the poster wrote $18 Billion in debt (1+ / 0-)
      Recommended by:
      ColoTim

      and did not write "$18 Billion net asset deficit."

      •  it seemed odd that someone would be (1+ / 0-)
        Recommended by:
        Yoshimi

        surprised that cities use debt to finance operations and capital expenditures, so I gave him/her the benefit of the doubt and read the comment accordingly.

        •  Johnny - did you read the article quoted where (1+ / 0-)
          Recommended by:
          pollwatcher

          it states:

          The bankruptcy petition would seek protection from creditors and unions who are renegotiating $18.5 billion in debt and other liabilities.
          Like I said, the poster wrote "$18 Billion in debt" and did not write "$18 Billion net asset deficit"

          The poster did not say they were "surprised that cities use debt to finance operations and capital expenditures" the poster was stating a fact: Detroit is renegotiating $18.5 billion in debt and other liabilities.

          •  why is it surprising they'd have that much (1+ / 0-)
            Recommended by:
            Yoshimi

            debt, though?

            •  johnny - maybe this can help answer your question (0+ / 0-)
              Detroit's bankruptcy is by far the largest of its kind in U.S. history, in terms of the city's population of about 700,000 and the amount of its debts and liabilities,
              Apparently, many people are surprised that Detroit's debt is so large.
              •  just means its a big city. (0+ / 0-)

                cities carry debt.  larger cities carry more debt.

                if you want to argue that Detroit had a disproportionately large per capita debt load, then go ahead and introduce facts about its debt relative to other cities.

                but just repeating a number and saying, "wow, thats big!" without any context or benchmark......at best, it doesn't help, and it sort of smells tea party-ish.

                •  johnny - your comment made me laugh (0+ / 0-)

                  My comments provided quotes that state

                  Detroit's bankruptcy is by far the largest of its kind in U.S. history, in terms of the city's population of about 700,000 and the amount of its debts and liabilities,
                  Yet, you try to insult me by describing me as 'tea party-ish'.  Seems that's your MO when you are proven wrong -- you lash out can call people names -- wah wah
                •  Actually, it is really big (0+ / 0-)

                  Canadian data (since it was all I could find quickly), but (using 2011 data) Detroit's debt is:

                  15 times larger per capita than municipalities in the Greater Toronto area

                  10 times larger par capita than Calgary or Edmonton

                  4 times larger per capita than Montreal (which is regarded as being the worst-managed major Canadian city, by a very wide margin)

                  It really does look like Detroit is in a terminally bad situation. If someone could find comparable debt-per-capita data for US cities, that would be informative.

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