Detroit Defaults
- In 2009, as the Obama administration pressed through its version of the auto bailout, creditors of companies like General Motors were squeezed into accepting repayments of just pennies on the dollar. The deal was supposed to save Detroit. Instead, creditors of the city of Detroit itself will now be handed pennies on the dollar.
City emergency manager Kevyn Orr, a bankruptcy lawyer appointed in March, told bondholders, insurers and union leaders that they would have to take less than the money they are owed if the city is to survive. “Detroit’s road to recovery begins today,” Orr said, proposing that unsecured bonds and some unfunded pension liabilities receive less than a dime on the dollar, since the city owes such creditors an outstanding $11 billion.
According to Orr’s May report, the city owes some $17 billion in long-term obligations. City liabilities include $9.4 billion in bonds and other borrowing. That’s not counting unfunded pension liabilities. If creditors refuse to accept this deal, the city will reportedly go bankrupt.
At the moment, this is a way into the future for Chicago - Rahm is still spending money and no one has pressed hard to open the books and give a full accounting. If they did, the TIF gravy train might derail, and that's just for starters. However, Illinois itself has a very large problem on its hands.
Labels: money questions
posted by SCC at 12:05 AM
39 Comments:
I know its off topic but I think this needs to be addressed. How many coppers that work VRI South (61st & Racine) are tired of the parking situation? How many copper's cars have to be burglarized before the parking problem is fixed? I know of at least a dozen policemen who have had their cars burglarized or damaged. We have to park our personal vehicles a block away in front of abandoned buildings with 10 or more gangbangers sitting on the front porch in the worst neighborhood in the city. And when this problem is brought to the VRI bosses who assure that the problem is being addressed, they assign a cross-eyed retard to work "Lot Security" in the police van when all he does all night is sit in one spot and watch movies, talk on the phone, or hang out inside the building.
The Gang Enforcement parking lot (East lot) is half empty and VRI officers are forbidden from parking there (a good waste of 20 or more parking spots). And god forbid, I park my brand new Cadillac in the Gang Enforcement lot because I don't want to be a burglary victim, and that A-Hole militant M/1 Sgt. from Gangs comes out there, writes down my plate, and threatens to give me a parking ticket for parking in "their" half empty lot while he allows every F/1 VRI officer to park in "their" lot, no questions asked. Total Bullshit!! Something has to be done about this!!
Reports today say the city will hire 600 to
Keep school children safe on the way to school. Instead lets have the mothers and fathers walk their own kids to school for FREE! Is it too much for society to ask them to get up in the morning, wtf
If creditors refuse to accept this deal, the city will reportedly go bankrupt.
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Well since it was the politicians who fucked up Detroit and NOT the employees, I hope the employees and pensioners tell them to go FUCK themselves into a black hole and die.
Detroit is fucking OVER, and giving back everything you've worked for your entire life and accepting to perform the same work for 10 cents on the dollar is something only a fucking retarded dipshit would ever do.
FUCK giving politicians their city back to fuck up once again.
TAKE EVERYTHING THAT AIN'T NAILED DOWN!!! GET EVERY FUCKING CENT OUT OF THAT SHITHOLE AND LET IT FUCKING DIE!!!
At least you'll get the maximum of what you can get and closer to what is owed to you before you give it all the fuck away and stand around for another few years living like poor scum for the city to collapse yet again.
FUCK DETROIT, and FUCK CHICAGO if it happens here. TAKE WHATEVER YOU CAN GET FROM THIS SHITHOLE AND RUN AS FUCKING FAR AWAY AS YOU CAN.
When you get where you're going, you'll find a job paying FAR FUCKING MORE than Detroit was ever gonna pay you anyway. So why the FUCK would anyone give up 90% of their pension and cut their own paychecks down to shit just to keep the name Detroit over the shithole that it will always be?
Does anyone know if the new hires are paying into the pension system?
CPS lays off 663 teachers and staff but is going to hire 600 people to protect kids coming and going to school? How much is that gonna cost? And who is covering the cost of having the CPD train them, as has been stated?
Here is a solution to your VRI parking problem. DON'T sign up for it and don't go there! Do you think that if no one did it the city would be forced to hire more people. The city can't lose! They have people working overtime taking spots that they should hire to fill and they treat the people that go there like shit and they still sign up for it. Who is the asshole here?????
So does that mean that retirees in Detroit are going to receive .10 on the dollar for their pensions? Better build more housing projects to house all the retirees.
All the more reason to move away from Athens by the lake, goodbye Illinois, hello Indiana.
Anyone hear Obama is taking his family to Africa with the cost in excess of 100 million dollars?
He is taking all his security, many many cars,and the Secret Service is going there now to install bullet proof windows in the hotel he is staying. He also has a Navy aircraft carrier with a full hospital and F-18's in the event of something happening.
That's it, I ain't voting for him ever!!! Wait, what, he can't run again? Hmmmmm, maybe that is a good reason he is spending the taxpayers money... he don't care because the trip won't be a topic brought up in the next election.
Hope he stays there!
VRI comment: My advice and no sarcasm intended here is to have more people car pool. Look around and ask yourself next time your are in traffic just how many people are driving solo to VRI and live blocks apart. C'mon guys, admit it: Where to the coppers live at? 022 and 008 mostly. The problem is people like their independence.
"And god forbid, I park my brand new Cadillac in the Gang Enforcement lot because I don't want to be a burglary victim, and that A-Hole militant M/1 Sgt. from Gangs comes out there, writes down my plate, and threatens to give me a parking ticket for parking in "their" half empty lot while he allows every F/1 VRI officer to park in "their" lot, no questions asked. Total Bullshit!! Something has to be done about this!!"
How about don't drive yo bran-knew Cadillac to turdville? All that VRI blood money sure is tasty though...
WOW !!!
Detroit defaulting means that retired coppers will have their pension payments cut drastically and current p/o's will take a pay cut.
That means most Detroit police both active and retired have purchased their last Cadillac. I know VRI has been a windfall to many but who thinks it was the most cost efficient way to address ghetto violence?
Don't make the mistake of thinking that can't happen here.
Cut welfare and bullshit aid to illegals fisrt then they will have millions in the bank.
The Gang Enforcement parking lot (East lot) is half empty and VRI officers are forbidden from parking there (a good waste of 20 or more parking spots). And god forbid, I park my brand new Cadillac in the Gang Enforcement lot because I don't want to be a burglary victim, and that A-Hole militant M/1 Sgt. from Gangs comes out there, writes down my plate, and threatens to give me a parking ticket for parking in "their" half empty lot while he allows every F/1 VRI officer to park in "their" lot, no questions asked. Total Bullshit!! Something has to be done about this!!
6/15/2013 01:12:00 AM
As to your problem that "needs to be addressed": ditch the Cadillac, drive a Chevy and you can skip working VRI on your day off. I've done your daddy's job for him. wish him a Happy Father's Day for me.
Now, about you throwing the word "retard" around.......
Cross eyed retard? I think a retard is someone who brings a new Cadillac to a shit neighborhood.
People really need to be paying attention to this story but it seems to be swept under the table. Detroit intends on cutting the retirees pensions to balance the budget. Not only future retirees but current ones who have contributed to the pension plans their whole careers while the pols squandered the money. This is not only the future of Chicago, but also Illinois and the country as a whole. While the city and state pension plans are disasters, Rahm and his crooks are "giving away" millions and millions in billboard revenues to their political backers. Finally the Tribune has actually done some reporting and detailed how much the citizens of Chicago are getting scr++wed to pay back big time Dem contributors. The intelligent Chicago voters will show them next election though!!! Rahm will only get 75% of the vote and Sandra Jackson will only get 80% (while running from her jail cell). Triple J will still get over 80% though since he is sick.
Thought the firemen were ensuring the walk to school was safe ?
Whatever happened to that forensic audit thing ?
While a chicago casino is not the "end all-be all" fix, it would go a long way towards the supposed city cash crunch. Seems like Quinn won't pass anything until he get what he wants 1st, that being pension reform. How about stop giving the store away and paying in what is supposed to be paid in. Lets see if our bastard mayor tries to blow off the lawfully mandated payment while he's writing the check for maggie daley (no caps) park.
6/15/2013 01:12:00 PM
Re: Officers cars being broken into while working VRI...
Well... Who's the idiot?
The bosses running VRI who refuse to make proper provisions to safeguard the vehicles of coppers who work VRI?
Or the coppers willing to risk expensive damage to their vehicles and knowing full well that proper provisions aren't being made to safeguard their vehicles?
Balancing test moment here...
Making that "free money" that really isn't free, vs. the aggravation of finding your car fucked up and having to spend some of that "free money" plus being fucked out of precious down time running around trying to get it fixed.
Gang Enforcement Sgt. "forbidding" you from parking in "their" lot?
You should've recorded his little "performance" by the way...
That's like him "forbidding" you from using his designated favorite urinal then pissing on the back of your shoes when other urinals are available anyway...
Heard from a buddy officer about his thoughts on vehicle repossession. He believed that refusing to make car payments was normal. He said "aint nobody losing nothing". He claimed loan companies were insured. Yes they are. But where do the insurance companies balance their losses at? Other consumers like you and me. Different mindsets. Some officers have link cards and believe it is ok. Everyone else has them right? wake up folks, we are on our way down and may even be down too deep already. Look around. Its sad.
less then 10 years and the police pension fund is out of money. The city will take the position that each pension fund stands alone and when it is out of money it is out.Bankruptcy? If that happens the pensions will be cut, drastically. It seems that this is coming and there is no stopping it.
To all, but especially to the younger coppers. Make no mistake that the city will not take care of you when you retire. Put every last penny into Deferred Compensation, even if it means having to work a second job. The money will make retirement more affordable and attainable.
Then, get out of Chicago before they take the gold fillings from your teeth.
To the VRI parking baby...you must be soft because there is plenty of parking there now. I never once had an issue even when it was fully staffed. Try getting there early so your VRI Caddi is safe.
o they are in a 401(k)
Heard from a buddy officer about his thoughts on vehicle repossession. He believed that refusing to make car payments was normal. He said "aint nobody losing nothing". He claimed loan companies were insured. Yes they are. But where do the insurance companies balance their losses at? Other consumers like you and me. Different mindsets. Some officers have link cards and believe it is ok. Everyone else has them right? wake up folks, we are on our way down and may even be down too deep already. Look around. Its sad.
You a racist
After getting your car, partner, and keys drive your personal car over to the new 007 District parking lot. It's right around the corner. I know some want the bosses to come up with all the ideas, but most can't think out of the box.
Isn't the VRI cutting down on the crime.
Anonymous said...
While a chicago casino is not the "end all-be all" fix, it would go a long way towards the supposed city cash crunch. Seems like Quinn won't pass anything until he get what he wants 1st, that being pension reform. How about stop giving the store away and paying in what is supposed to be paid in. Lets see if our bastard mayor tries to blow off the lawfully mandated payment while he's writing the check for maggie daley (no caps) park.
6/15/2013 11:37:00 AM
Just in case you have not been reading the comments made by Rahm and Quinn, both of them have pledged to use most of the profits from a Chicago casino for education. Nothing about pensions or other debts.
Anonymous Anonymous said...
less then 10 years and the police pension fund is out of money. The city will take the position that each pension fund stands alone and when it is out of money it is out.Bankruptcy? If that happens the pensions will be cut, drastically. It seems that this is coming and there is no stopping it.
6/15/2013 05:21:00 PM
You're basing that assumption on a continuing bad economy. The markets have turned around and the fund depends heavily on the markets.
To 6/15/2013 02:57:00 PM
so what if he dont pay the car bill it not like you have to pay the bill and insurance company is there to help out thats why we pay them and the officer you talk about do pay the bill they made the mistake with paperwork and that officer dont have link some do but not her so stop hating on our people.
so what if he dont pay the car bill it not like you have to pay the bill and insurance company is there to help out thats why we pay them and the officer you talk about do pay the bill they made the mistake with paperwork and that officer dont have link some do but not her so stop hating on our people.
6/17/2013 02:57:00 AM
dis be racist.
Anonymous said...
Does anyone know if the new hires are paying into the pension system?
6/15/2013 06:57:00 AM
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That's a stupid question.
What system would they be paying into if not the Chicago Police Pension Fund?
Anonymous said...
People really need to be paying attention to this story but it seems to be swept under the table. Detroit intends on cutting the retirees pensions to balance the budget. Not only future retirees but current ones who have contributed to the pension plans their whole careers while the pols squandered the money. This is not only the future of Chicago, but also Illinois and the country as a whole. . . .
6/15/2013 10:48:00 AM
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OMG!
Detroit is in Michigan. I know that I do not know what Michigan law is regarding pensions in that state but I am pretty confident that it does not mirror the Illinois State Constitution and the wording in the Illinois State Constitution regarding pensions.
Stop comparing other states to Illinois.
Once Madigan et all pass their pension reform bill in Spingfield you can bet your britches that there will be a challenge to said law in the court system. That challenge may last years, even decades (who knows) but until the wording regarding pensions in the State of Illinois Constitution is changed I beleive that you are pretty safe.
Anonymous said...
To all, but especially to the younger coppers. Make no mistake that the city will not take care of you when you retire. Put every last penny into Deferred Compensation, even if it means having to work a second job. The money will make retirement more affordable and attainable.
Then, get out of Chicago before they take the gold fillings from your teeth.
6/15/2013 06:10:00 PM
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Deferred Comp?
You who put your $$$ into Deferred Comp are the fools.
Best to put your $$$ into a Roth IRA;
An individual retirement account with Hartford, MetLief, MassMutual, New York Life etc.
and the most important info is to be sure that you have a Life Insurance policy SEPERATE FROM WHAT THE CITY OFFERS.
Don't spend the extra $$ for double or triple your salary. Use that to get your own policy with a company that you choose cause when you retire the city policy thru Prudential is unaffordable!
6/17/2013 02:57:00 AM
Did you got to a chicago public school? Whats up with the sentence which is like an essay length. People like you force me to pay more for insurance, pay more on interest and taxes. Pay your bills and pay them on time. Your mentality is that of a child. So what everyone is doing it? Really? That 002 district officer who lives in 004 needed to stay out. It was not her car. Yea she was so concerned about her block that she came out of the house without a gun without a phone without a badge without clothes on. Lies. Rude hood rat becomes the police and thinks she knows it all. And to treat other officers like that. No different from a ghetto hood rat at a domestic disturbance. Keep being a hood rat it just goes to prove me right. Leave your phone number or email address ill show you a video of how that hood rat was acting, all and just for you.
I know its off topic but I think this needs to be addressed. How many coppers that work VRI South (61st & Racine) are tired of the parking situation? How many copper's cars have to be burglarized before the parking problem is fixed? I know of at least a dozen policemen who have had their cars burglarized or damaged. We have to park our personal vehicles a block away in front of abandoned buildings with 10 or more gangbangers sitting on the front porch in the worst neighborhood in the city. And when this problem is brought to the VRI bosses who assure that the problem is being addressed, they assign a cross-eyed retard to work "Lot Security" in the police van when all he does all night is sit in one spot and watch movies, talk on the phone, or hang out inside the building.
The Gang Enforcement parking lot (East lot) is half empty and VRI officers are forbidden from parking there (a good waste of 20 or more parking spots). And god forbid, I park my brand new Cadillac in the Gang Enforcement lot because I don't want to be a burglary victim, and that A-Hole militant M/1 Sgt. from Gangs comes out there, writes down my plate, and threatens to give me a parking ticket for parking in "their" half empty lot while he allows every F/1 VRI officer to park in "their" lot, no questions asked. Total Bullshit!! Something has to be done about this!!
you pose a problem... I have a solution. 1) stop being a crybaby. 2) dont work VRI, your not required to do so. 3) Its your fault for rolling the dice and driving a brand new cadillac into englewood and parking it there... Let alone parking it in the police parking lot. ive had ten times more damage to my car in police lots due to coppers opening doors, bumping it backing out etc.. 4) stop being a rubber, no body likes the guy who has to whine and cry about everything. 5) if the gang guys have a lot then so be it, if im correct that is where they normally work out of and pull out of??? If true then why inconvience them? They HAVE to work there every day, YOU DONT. Why should they have to hustle around for parking in there own building? 6) the militant hater sgt threatening to write coppers up, sigh... do you really think hes gonna?? He can go fk himself. 7) Next time you want to pout about useless crap refer back to rules 1-5. And are you really making fun of a guy because hes crosseyed???? wow, good for you hardguy. I guess your just awesome and dont care that guys might read things on this site... clearly you could care less about what other people might feel, but then again judging by your sophomoric rant you haven't grown up yet and learned to respect your fellow adults and co workers.Thanks and good luck with that new cadillac in englewood moron.
Once Madigan et all pass their pension reform bill in Spingfield you can bet your britches that there will be a challenge to said law in the court system. That challenge may last years, even decades (who knows) but until the wording regarding pensions in the State of Illinois Constitution is changed I beleive that you are pretty safe.
6/17/2013 07:50:00 AM
You are a fool to believe this. The legal position that is being taken by the city ( according to the law firm hired by them) is that each pension fund stands alone. The city has fully funded each fund ( although underfunded according to accountants) and when the fund runs dry the city has no obligation to pump extra cash into the fund. And, the funds will run dry within 10-15 years depending on what fund you refer to. Do not count on the Illinois constitution to save the funds. Yes, your benefits will not be diminished as long as there is enough cash in the fund and as long as the city does not declare bankruptcy. You, my friend, are soaking up the BS passed out by the unions.
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Deferred Comp?
You who put your $$$ into Deferred Comp are the fools.
I pulled out my deferred comp when I retired and moved it over to an IRA. I manage my own funds and have greater choice. However, I do not believe that you are a fool to use deferred comp. It is a good way to save as you will find out the pension is not enough. I suggest you also open an IRA besides deferred and you will save even more, if you can that is.Do not retire without having a tax free savings.
I pulled out my deferred comp when I retired and moved it over to an IRA. I manage my own funds and have greater choice. However, I do not believe that you are a fool to use deferred comp. It is a good way to save as you will find out the pension is not enough. I suggest you also open an IRA besides deferred and you will save even more, if you can that is.Do not retire without having a tax free savings.
Wheres the tax free savings. None of those choices are tax free, they are tax deferred as you will pay taxes of that money when you start taking it out. It is not tax free
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