Detroit bankruptcy Concepts

The Great Divide: Unequal Societies and What We Can Do About Them

by Joseph E. Stiglitz · 15 Mar 2015 · 409pp · 125,611 words

Globalization Isn’t Just about Profits. It’s about Taxes Too. Fallacies of Romney’s Logic Part V CONSEQUENCES OF INEQUALITY The Wrong Lesson from Detroit’s Bankruptcy In No One We Trust Part VI POLICY How Policy Has Contributed to the Great Economic Divide Why Janet Yellen, Not Larry Summers, Should

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been given insufficient attention. The first focuses on what’s happening to our inner cities, in which so many of the country’s poor live. Detroit’s bankruptcy is emblematic. Like so many American families, it was hurt by following the advice of the exploitive financial sector, buying risky derivatives, which Warren

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: Oxford University Press, 2012), pp. 275–317; and Witness testimony to the House Committee on Veterans’ Affairs, September 30, 2010. THE WRONG LESSON FROM DETROIT’S BANKRUPTCY* WHEN I WAS GROWING UP IN GARY, INDIANA, NEARLY A quarter of American workers were employed in the manufacturing sector. There were plenty of jobs

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, post–Great Recession bankruptcies like those in Jefferson County, Ala., Vallejo, Calif., Central Falls., R.I., and now Detroit will become far too common. Detroit’s bankruptcy is a reminder of how divided our society has become and how much has to be done to heal the wounds. And it provides an

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Crushing of the American Dream”; “The One Housing Solution Left: Mass Mortgage Refinancing”; “A Tax System Stacked against the 99 Percent”; “The Wrong Lesson from Detroit’s Bankruptcy”; “In No One We Trust”; “Why Janet Yellen, Not Larry Summers, Should Lead the Fed”; “The Insanity of Our Food Policy”; “On the Wrong

Crashed: How a Decade of Financial Crises Changed the World

by Adam Tooze · 31 Jul 2018 · 1,066pp · 273,703 words

, Cost City $500 Million: Risky Loans Contribute to Swaths of Empty Homes, Lost Tax Revenue,” Detroit News, June 2015. 5. C. S. Chung, “Zombieland/The Detroit Bankruptcy: Why Debts Associated with Pensions, Benefits, and Municipal Securities Never Die and How They Are Killing Cities Like Detroit,” Fordham Urban Law Journal 41 (2014

The Origins of the Urban Crisis

by Sugrue, Thomas J.

, 1940–1970 B.4 Index of Relative Concentration of Black Females in Detroit by Occupation, 1940–1970 P.1 In the years leading up to Detroit’s bankruptcy, the city’s civic infrastructure collapsed because of inadequate city, state, and federal funding. The Detroit public Library’s once grand Mark Twain branch

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. The library system did not have the funds to repair it. Preface to the Princeton Classics Edition ON JULY 17, 2013, the city of Detroit filed for bankruptcy in federal court. It was a catastrophe long in coming, the result of decades of disinvestment, depopulation, political marginalization, and financial mismanagement from the

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-eating holes in their place. Scavengers descend on newly abandoned houses within days, removing plumbing, wiring, and anything else that can be resold.5 Detroit’s bankruptcy is the grim epilogue to the story that I tell in The Origins of the Urban Crisis. But the conventional wisdom about Detroit seldom takes

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Kwame Kilpatrick, for corruption and misrule; or criticize the Democratic Party and liberals for failing to implement austere budgets. Columnist George Will wrote that Detroit’s bankruptcy poses “worrisome questions about the viability of democracy in jurisdictions where big government and its unionized employees collaborate in pillaging taxpayers.”6 To understand Detroit

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. But the city reduced the ranks of firefighters and closed firehouses to save money. The police department was understaffed and underfunded. The month that Detroit declared bankruptcy, local newspapers reported that the Detroit Police Department took an average of fifty-eight minutes to respond to emergency calls.12 Public education also suffered

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state to appoint powerful emergency managers (EM) to take over troubled city governments and school districts. In March 2013, Snyder appointed Kevyn Orr, a bankruptcy lawyer, as Detroit’s EM. The position comes with sweeping powers; the EM is not accountable to the electorate, but has vast powers to restructure city finances

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, the deal, like many of the high stakes, high-risk credit deals that proliferated in the late 1990s and the 2000s, unraveled.19 After Detroit’s bankruptcy, all of the parties to the deal dodged responsibility for their role in Detroit’s fiscal crisis. A key player in the bankruptcy negotiations, speaking

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Times, tellingly stated: “Yes, it’s our money, but no one wants to be that bank, the one that forced a major American city into bankruptcy.” Detroit was perhaps the nation’s most prominent casualty of the deregulation of financial services and the lax oversight of Wall Street investment practices that began

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’s transit system, and the hiring of more firefighters.21 The immediate question—to be resolved in court—is who will bear the burden of bankruptcy? Detroit’s retired municipal employees will likely see a cut in their pensions and health benefits. (In 2013, the average city retiree received about $19,000

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in the first place.22 In the wake of Detroit’s fiscal crisis, an even more fundamental set of questions has emerged. What will post-bankruptcy Detroit look like? Will the city continue to hemorrhage population and jobs? Or will it attract new investment? Is Detroit destined for obsolescence, or will it

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-level jobs are closed to those with felony records. As a result, those with criminal records are often driven back into the underground economy.36 Detroit’s bankruptcy and its current crisis are the result of decades of racial conflict, demographic change, and especially economic collapse. The history of Detroit that I

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Brittany Griebling for poking around Detroit with me and for sharing fried pickles and mimosas at the Bronx Bar. 1. There are many accounts of Detroit’s bankruptcy. The Detroit Studies Program at Marygrove College has compiled a useful online bibliography: http://www.marygrove.edu/academics/institutes/institute-for-detroit-studies

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), 85-99. 31. I wrote about Detroit’s Super Bowl efforts in “Still a Poor City,” Detroit Free Press, February 6, 2006; Joe Drape,“Bankruptcy for Ailing Detroit, but Prosperity for its Teams,” New York Times, October 14, 2013. The most comprehensive study is Roger G. Noll and Andrew S. Zimbalist, ed

How to Kill a City: The Real Story of Gentrification

by Peter Moskowitz · 7 Mar 2017 · 288pp · 83,690 words

Detroit’s former economic development czar said: “Bring on more gentrification. I’m sorry, but I mean, bring it on.” In the years preceding Detroit’s official bankruptcy, a confluence of neoliberal policy doctrine passed down from the leaders of successfully gentrified cities such as New York and prophets like Richard Florida

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new economic segregation, the government at all levels has placed its thumb on the 7.2’s side of the scale. Just weeks after Detroit filed for bankruptcy—a process that would see city workers’ pensions cut and a variety of city services reduced—Dan Gilbert traveled to the White House and

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bankruptcy are remembered as an example of city leaders coming together to save a city from itself. Ravitch was even brought in to help Detroit with its bankruptcy in 2014. But the transition in New York was much bumpier at the time. Large protests were held all across the city. Unions got

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in New York, 37–38, 189–191, 195 Delany, Samuel R., 210, 215–216 Delano, Frederick, 188 Denton, Nancy, 106–107 Department of Transportation, 42 Detroit bankruptcy of, 7, 77, 83, 87, 96, 99, 192 business startups in, 73–74, 84–85 as “closed loop,” 83, 86 “creative class” and, 79–82

Makers and Takers: The Rise of Finance and the Fall of American Business

by Rana Foroohar · 16 May 2016 · 515pp · 132,295 words

Street financial institutions that had gotten the city into a lot of its budgetary trouble were lining up for far more generous deals. When the bankruptcy of Detroit began in late 2013, the terms of the settlement quickly took center stage and became “a discussion between an emergency manager, from a law

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’s demise. In fact, he says, it was the financiers who cut the dubious bond deals with the city in the first place that put Detroit into bankruptcy. That Wall Street debt was “the biggest contributing factor to the increase in Detroit’s legacy expenses,” explains Turbeville, who wrote an influential report

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of the city, industrialists whose wealth had been forged in the Arsenal of Democracy, as Detroit was once known.36 The big lesson from Detroit’s bankruptcy is that cities need to manage their finances and dealings with capital markets much more carefully. And Detroit is far from the only American city

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Compensation Survey, March 2015. 32. Chris Christof, “Detroit Pension Cuts from Bankruptcy Prompt Cries of Betrayal,” Bloomberg, February 5, 2015. 33. Wallace C. Turbeville, “The Detroit Bankruptcy,” Demos, November 2013. 34. Wallace C. Turbeville, “Detroit Moves to the Next Phase,” Demos, November 7, 2014. 35. Turbeville, “The

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Detroit Bankruptcy.” 36. Rana Foroohar, “Detroit Turns Up,” Time, November 13, 2014; author interviews with Turbeville; Turbeville, “The Detroit Bankruptcy.” 37. Fix LA Coalition, “No Small Fees: LA Spends More on Wall Street than Our Streets,” March

The Rise and Fall of American Growth: The U.S. Standard of Living Since the Civil War (The Princeton Economic History of the Western World)

by Robert J. Gordon · 12 Jan 2016 · 1,104pp · 302,176 words

slowing population growth. A sole focus on the federal debt ignores the unfunded pension liabilities of many of America’s states and localities. The bankruptcy of Detroit has led municipal bond experts to ask whether Illinois and Chicago could be far behind, not to mention other large states that have massive unfunded

The Price of Time: The Real Story of Interest

by Edward Chancellor · 15 Aug 2022 · 829pp · 187,394 words

a multibillion-pound deficit. Furious college lecturers launched a nationwide strike in response.46 Weighed down with pension liabilities, several municipalities and cities declared bankruptcy, among them Detroit and San Bernardino. Chicago’s credit rating was cut to junk in 2015 after a court ruled against a proposed cut in pension entitlements

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in early 2009, when pension entitlements of the UAW members took precedence over GM’s creditors – despite the creditors’ legal claims being superior. In Detroit’s 2013 bankruptcy, pensioners also fared better than bondholders (Darrell Preston, ‘Making U.S. Pensions Honest about Returns Means Bigger Deficits’, Bloomberg, 13 August 2015). New Jersey

Economic Dignity

by Gene Sperling · 14 Sep 2020 · 667pp · 149,811 words

Bentele, Keith, 267 bereavement leave, 36–37, 233 Berlin, Isaiah, 16 Bernanke, Ben, 52 Bernstein, Jared, 191, 267 Biden, Jill, 214 Biden, Joe, 15, 163 Detroit bankruptcy, federal response, 138 Bidwell, Matthew, 233 Bill of Rights, 16–17 B Lab, 120 Blake, Robert, 128 Blinder, Alan, 128 blue sky research, 99 Boeing

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Deming, David, 280–81 Democracy in America (Tocqueville), 49–50 democratic socialism, 103 Denmark, 294 unemployment benefits, 50, 131–32 Desmond, Matthew, 82–83, 175 Detroit bankruptcy, federal response, 138 developmental disabilities. See intellectual or developmental disabilities development subsidies, 125–26 DeVos, Betsy, 114 dignity net. See economic dignity net dignity of

Big Debt Crises

by Ray Dalio · 9 Sep 2018 · 782pp · 187,875 words

firm resolution to maintain a sound currency would have an extremely reassuring effect.” But Roosevelt stayed silent.164 In February, the crisis deepened. Facing bankruptcy, the Guardian Detroit Union Group, the largest financial institution in Michigan, sought a loan from the RFC. The group had little good collateral, so the RFC could

The Theft of a Decade: How the Baby Boomers Stole the Millennials' Economic Future

by Joseph C. Sternberg · 13 May 2019 · 336pp · 95,773 words

Retirement Systems,” National Association of State Retirement Administrators Spotlight brief, June 2016. 46. Susan Tompor, “Even 5 Years Later, Retirees Still Feel the Effects of Detroit’s Bankruptcy,” Detroit Free Press, July 18, 2018. 47. Catherine Candisky, “Ohio Public Employees Pension System Oks Benefit Cuts,” Columbus (OH) Dispatch, October 19, 2017. 48

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); education debt/Millennials; housing/financial crisis deficit spending (government), 97, 206 deflation, 234, 234n Deloitte Consulting, 104 Department of Housing and Urban Development (HUD), 123 Detroit bankruptcy/pension cuts, 175 DeVos, Betsy, 230 Dodd-Frank Wall Street Reform and Consumer Protection Act, 139–140 Dorn, David, 35–36 dot-com stock bubble