On December 3rd Judge Steven Rhodes ruled that the City of Detroit is eligible to enter Chapter 9 bankruptcy, the largest municipal bankruptcy in American history. Detroit’s bankruptcy was driven mostly by a severe reduction in revenues. The city’s population has declined dramatically, dating back to the 1967 riots, and the city is plagued by long-term unemployment, causing Detroit’s property and income tax revenues to drop precipitously. There are not even enough taxpayer citizens living in the city to fund necessary city services.
|By: Phoenix Woman Monday September 2, 2013 4:00 pm|
As Tony Sutton sees his nadir, so also does the myth of the fiscally prudent and managerially competent Republican. Sutton used the myth of his skill with numbers and business expertise to get to the top of the Republican Party of Minnesota; now he is gone, and his chief ally Michael Brodkorb is gone, and the Republicans are left to pick up the pieces.
|By: Allison Hantschel Monday July 22, 2013 8:00 pm|
Kevyn Orr, by the way, is getting paid $275,000 to tell people who made $35,000 a year their whole lives to get real. Just in case your irony meter wasn’t already buried in the red zone. T
|By: DSWright Monday July 22, 2013 6:40 am|
As Detroit enters Chapter 9 bankruptcy some are considering the possibility of a federal bailout to dull some of the sharper cuts likely to result.
|By: DSWright Friday July 19, 2013 6:40 am|
The city of Detroit has filed for bankruptcy protection. It is the largest municipal bankruptcy case in U.S. history.
|By: masaccio Sunday May 5, 2013 10:00 am|
Are you in debt? You are a bad person. Politicians in both parties despise you and would prefer that you be crushed under the weight of your debt.
|By: Mike Konczal Saturday May 4, 2013 1:59 pm|
Robert Kuttner’s Debtors’ Prison ties together many of the individual fights progressives are battling over into a general argument for why our economy is broken 5 years after the Great Recession began. There are those fighting both Republicans and some Democrats on topics ranging from austerity to foreclosure relief and financial sector accountability, while there are fellow activists in Europe fighting against the European Central Bank’s policy of tight money and anti-democratic takeovers of local policy.
|By: David Dayen Friday November 30, 2012 8:03 am|
A federal judge has blessed the Hostess liquidation, after labor and management failed to reach agreement on an equitable solution. This isn’t surprising at all; management was basically set up to liquidate the company and strip the assets. Twinkies and Ding Dongs will survive; the company has solicited several offers for the brands. It’s just the 18,500 employees who will be out of luck; even if some of them get retained after the fire sale, getting absorbed into a new company almost certainly means that they will not all get their jobs back.
Meanwhile the executives will get a BONUS for all this.
|By: David Dayen Monday November 19, 2012 1:55 pm|
A US bankruptcy judge has prevented the liquidation of Hostess Brands for the moment, suggesting a mediation process between the company and its Bakers Union. Both sides have agreed to the mediation.
Hostess went to Judge Robert Drain to, get this, receive permission to pay out executive bonuses to top officials in the company, even while they seek the pull the company into a liquidation that would eliminate the jobs of at least 18,500 workers.
|By: David Dayen Sunday September 30, 2012 12:55 pm|
Though I’m not sure anyone pays attention to them anymore, the President delivered his weekly address this weekend, and it was all about how Congress has to help “responsible” homeowners (because the irresponsible ones deserve nothing, after all they fleeced those responsible banks to get the loan). In the address, President Obama contrasted his approach with a Congress that won’t expand refinancing for underwater borrowers, by saying that his Administration “teamed up with state attorneys general to investigate the terrible way many homeowners were treated, and secured a settlement from the nation’s biggest banks – banks that were bailed out with taxpayer dollars – to help families stay in their homes.”
So what about that? We know from early reports that the bulk of the consumer relief in the first three months of the foreclosure fraud settlement went to short sales, which involve families forced into SELLING their homes, not staying in them. The bulk of these short sales, which amount to a bank waiving the right to seek money from a homeowner who sells a home for less than they owe on their mortgage, occurred in states whose laws bar banks from going after those homeowners anyway.