Displaying posts tagged with

“bankruptcy”

How Detroit went broke: The answers may surprise you – and don’t blame Coleman Young

By Nathan Bomey and John Gallagher/Detroit Free Press Business Writers | FILED UNDER – Local News / City of Detroit | 1:10 AM, Sep. 15, 2013 | Detroit is broke, but it didn’t have to be. An in-depth Free Press analysis of the city’s financial history back to the 1950s shows that its elected officials […]

The Wrong Lesson From Detroit’s Bankruptcy

August 11, 2013, 11:44 pm By JOSEPH E. STIGLITZ NYTimes When I was growing up in Gary, Ind., nearly a quarter of American workers were employed in the manufacturing sector. There were plenty of jobs at the time that paid well enough for a single breadwinner, working one job, to fulfill the American dream for […]

Chicago Sees Pension Crisis Drawing Near

By MONICA DAVEY and MARY WILLIAMS WALSH Published: August 5, 2013 NYTimes CHICAGO — Corporations are moving in, and housing prices are looking better across the region. There has been a slight uptick in population. But a crushing problem lurks beneath the signs of economic recovery in Chicago: one of the most poorly funded pension […]

Should the Federal Government Bail out Detroit?

by STEVEN MAZIE AUGUST 6, 2013, 12:00 AM BigThink Last week, a move to prohibit the federal government from coming to the aid of financially strapped American cities came two votes short of passage in the Senate. Lindsay Graham, the Republican sponsor of the measure, was aiming to prevent congressional action to “bail out Detroit […]

Pandemic of pension woes is plaguing the nation

Published: Monday, 5 Aug 2013 | 6:00 AM ET By: John W. Schoen | Economics Reporter CNBC Detroit, you’re not alone. Across the nation, cities and states are watching Detroit’s largest-ever municipal bankruptcy filing with great trepidation. Years of underfunded retirement promises to public sector workers, which helped lay Detroit low, could plunge them into […]

Public Pensions After Detroit

By THE EDITORIAL BOARD Published: August 3, 2013 NYTimes Detroit’s bankruptcy and the problems facing its pension funds offer two important lessons to other communities. One is that state and local governments need to do a much better job managing retirement funds. The other is that they should not pre-emptively reduce hard-earned benefits at the […]

Relax, We’re Not Detroit

by Daniel Gross Jul 29, 2013 2:50 PM ED Daily Beast Fears that the rest of the country will go the way of Detroit are unfounded fearmongering. Daniel Gross on why the Motor City is an outlier. No, Detroit is not a symbol, a harbinger, or a leading indicator of what is happening to America—despite […]

Michigan attorney general backs pensioners in Detroit bankruptcy

By Susan Kelly Sat Jul 27, 2013 5:14pm EDT Reuters (Reuters) – Michigan’s Attorney General Bill Schuette, a Republican, said on Saturday he would defend retirees who risk losing public pensions because of Detroit’s bankruptcy, putting him at odds with the city’s emergency manager appointed by fellow Republican Governor Rick Snyder. Schuette, an elected official, […]

Detroit: Myths and truths about bankruptcy

Greg Gardner, Detroit Free Press 12:04 a.m. EDT July 28, 2013 USA Today Two recurring misconceptions often repeated in the last several weeks: The domestic auto industry and Detroit are synonymous, and rich city pension benefits have pushed the Detroit budget into ruin. DETROIT — Suddenly, everyone’s a Detroit expert, whether he or she has […]

Why Detroit’s bankruptcy matters

By CLARENCE PAGE Chicago Tribune July 28 2013 We who live in other cities ask what drove Detroit into bankruptcy. What we really want to know is whether it could happen to us. Since 2010, five other cities and two counties, plus almost 30 special districts such as utility authorities have filed for bankruptcy, according […]