Alright, explain this

By 99205

Date 12-05-2012 19:19

http://www.dotcult.com/fixing-detroits-problems

By Dualie

Date 12-06-2012 00:42

You would have thought that they would know since the first election that obamas government cheese ain't for everyone after all.

By texwelder (***)

Date 12-06-2012 04:13

You got it that's how they think there so damn stupid they don't realize one pig only has a certain amount of bacon.

By OBEWAN

Date 12-06-2012 13:05

Someone needs to tell this woman about municipal bonds. If they wants mo money they gots to issue mo bonds.

In today's investment environment, muni bonds have become a lucrative alternative. The lowest credit rating gets the highest interest rate and the risk is still way below that of a corporate bond. Although I don't know if I would bet on Detroit. But I do have $10K in a college in Wayne county Michigan. And, LA, California has by far the worst credit rating and they are still selling lots of bonds so Detroit should have less trouble.

By Tommyjoking (****)

Date 12-06-2012 17:45

I watched a two hour documentary on the collapse of Detroit. The industrial sector fails/moves out of town, housing follows. Ironically a couple of administrations run rampant with spending at the same time the tax base is shrinking rapidly. Years of extreme corruption and stupid waste have broken this city literally. Whole neighborhoods residential and industrial that are just rotting buildings and weeds. Far as bonds go I do not think anyone in their right mind would purchase one issued by the city....if I am not mistaken they have already failed to cover a lot of bonds on projects issued over the last 25yrs.

The feds already have come in and did a study of things the city must do, a checklist if you will in order to receive assistance. These are things like restructuring, budget caps, wage reductions, selling off unnecessary properties and stop leasing upscale properties downtown. In a five year period they accomplished two of like 105 things on that list. I guess they just want a pile of more money to blow dumped in the bucket with no responsibility for it.

By OBEWAN

Date 12-07-2012 17:27 Edited 11-09-2013 18:52

I might have seen the same movie and I tend to agree with your opinion. I used to work in the auto industry in the Detroit area as a robotic welding person so I know the area. And, I tend to agree with the movie. When Detroit was first built the intent was to have everything close. They built a lot of fancy mansions right near downtown. They were Swiss Chalet and English Tudor and brick and limestone. Very very upscale. When I was there, they had fallen to below $100K and some were even boarded up and had homeless people and crack adddicts living in them. The richest neighborhoood in town where tha auto company CEO's used to live became a slum as people fled to the suburbs. It is a real shame. But, my point was that there might be a way to issue revenue bonds. Maybe they would be junk bond status, but some speculators might take the bet. When interest rates fall municipalities that are having problems with their debts just issue new "revenue bonds" at a lower interest rate and pay off the ones at a higher interest rate. I irks me when that happens though because my hope is to hold a good bond for 30 years and rake in 7 or even 8%- but it seldom works that way.