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Detroit Files for Bankruptcy, Facing Debts of $18 Billion

Detroit, the cradle of America’s automobile industry and once the nation’s fourth-most-populous city, has filed for bankruptcy, an official said Thursday afternoon, the largest American city ever to take such a course.

The decision to turn to the federal courts, which required approval from both the emergency manager assigned to oversee the troubled city and from Gov. Rick Snyder, is also the largest municipal bankruptcy filing in American history in terms of debt.

Keep reading the result of Bernanke's solution here:

http://www.nytimes.com/2013/07/19/us/detroit-files-for-bankr...

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Wonder

if the garbage is still being collected and properly disposed of?

That is a lot of money to pick up garbage. I think the private sector could do it for much, much less.

Wonder how many other cities are on the verge as well?

donvino

What happened to that *successful* car bailout?

I want my money back!!

http://www.breitbart.com/Big-Government/2012/08/22/Obama-s-A... the Treasury Department recently estimated taxpayers have lost "between $20 billion and $23 billion" of the $79 billion bailout to General Motors, Chrysler, and GMAC (now called Ally Financial) that Barack Obama completed in 2009.

Since taxpayers have lost more than $1 on every $4 loaned to the auto companies and given it directly to the UAW, similar "successes" in other industries will continue the transfer of wealth from American taxpayers to privileged and politically connected unions. According to Obama's own words on the campaign trail, doing for the rest of America's industries what he did for the auto industry is on his agenda for a potential second term.

According to the Special Inspector General for TARP's Quarterly Report submitted to Congress last month, GM, Chrysler, and Ally Financial have repaid only $35 billion of the bailout funds to date. This leaves $44 billion of taxpayer funds unpaid.

In theory, some of that will be paid back when the Government liquidates its 32% share in GM, its 6% share in Chrysler, and its 74% share in the former GMAC. The problem is, if those shares were sold at current market prices, the net proceeds--about $20 billion--would saddle American taxpayers with a $24 billion loss.

RP R3VOLution

$18 billion in debt? How did

$18 billion in debt? How did the city of Detroit accrue that much debt?

What did they do with it all, give everyone and their families a government job?

How in the world did they blow so much cash? What did they do with that enormous amount of money? Where did it all go?

What does the city of Detroit have to show for all of that spent money? Ford Field, and a Chevy Volt?

I'd really like to know how $18 billion got flushed down the toilet.

This is only a hypothesis, but I think most of that money got sucked down a giant hole called government bureaucracy.

Never be afraid to ask simple questions.

Almost half a billion a year for 36 years.

$500,000,000/year

Free includes debt-free!

Termites

The same ones that have eaten out the core of America.