detroit has become the largest US city
ever to declare bankruptcy that happen just recently they’re attempting to walk
back or walk away from eighteen billion
dollars in money that they currently 0 out some other legitimately some love
the money that the O is I believe illegitimate I’m but yes so that they
did that just today it was actually kind of interesting the way that they did
somebody was stepping in to try to stop them from declaring bankruptcy because of worries about what it could
do to the city’s pension funds on and the they pulled this legal trick
where they said they wanted to take a five-minute delay and during that five minute delay they
went to a different core and declare bankruptcy so I don’t know
if I really like the way that they did it but its interesting if nothing else we
have some details for what’s currently going on in Detroit but very large city obviously pretty tragic
that they it’s come to this but what do you think so a we did agree documentary on to your
team is he’s the first one we ever did for the Young Turks is called who took
down a Stockton side so stock and went into
bankruptcy was the largest bankruptcy before Detroit so until yesterday London California
Stockton Calif was the largest city in the country who I declare bankruptcy when you look
at it it’s very similar to Detroit its complicated factors their is over spending by the government
for example Stockton they built this huge stadium they didn’t need their own you know teams in Stockton klaas will
become support question the class a California League stockton ports right so any idea why
it’s a vanity project to them in the mayor at the time gets a ride
wrote that right is my policy have right and and then there’s the passions and it
for a while Stockton was paying a little more than average in
California now they pay a lot less rate so but it’s that’s not overwhelming
and then there’s a third element which is the bank’s they come in and he
got all mad when the stadium be awesome are many would look great here if you
buy our bond you’ll be so affordable right so one day
you like the just sheppard you exist how
they make money off it right and the number two there comes that
little tricks like oh yeah I mean don’t worry about that fee that’ll only happen
if this happens is very likely but anyway that might not happen for a year and a
half when you will be in office anymore and the low double up in Detroit’s case they had have a billion dollars in just PD’s yeah when I talk about
interest rate we’re not talking about things you get for a loan legitimate in
fees a billion dollars that the banks were
helping to manipulate to make sure that they would have to pay that it’s not
just malfeasance on the port on the park Detroit I reason you’d be clear absolutely so
their mayor was Mets everybody knows that and you know you wanna gonna prison and so at the same time
when you go to bankruptcy they’re gonna have to judge who gets group okay because the city can’t afford to
pay all their bills so now some other bills for to the
bankers who the more money from now looking to borrow money from
somebody should pay him back night all things being equal so now some other
bills or to the people who work to the city
for decades our whole lives they now have a passion with their
conference take the city which unlock you in you know the day endorses are now
cut to 11 third I me when you get a percentage
streetlights yes it was a street lights are working
thats unbelievable Italy at night in the dark detroit is
America’s safest city CNN industry I you don’t need a manual
is not a good idea in essence thorough stuff that I i mean
that is scary stuff right so um so in any got the pensions you gotta get the street lights working
so you gotta figure out a way to get all this money to work so that’s gonna put the bankers against
a guy so the pensions because the magazine’s alums into my money fun
roughly equal in power and political oh yeah I would like to the president’s
right prejudicing the sewage you made a
promise to me I worked my whole life I if I’m a cop a firefighter and even my
late for thirty forty fifty years to get his pension and not only to pull
away from me now I think the most compelling argument
whether you have mail pieces by the banks are not is as an investor and I’m an investor in
the past you know that with every investment you take a certain
degree rests you know promised anything you promised a return if things work out yeah but every single investor knows
that they might not work out and everything has different varying
degrees arrest summer very risky summer very unraced you see you took distress and
apparently didn’t work out if I was the person in charge is
bankruptcy out six to all investors if even if I was on the investors it
might be other pension funds that invested in Detroit because of all the different
things that go around the financial world so I’m not saying I I hate people who
invested in Detroit I’m gonna come muscles they have to say if I was a guy
church is safe well you obviously have taken big big hit here because your investment
didn’t work out and that’s how investments Co but to
turn around to the guy who work for thirty forty fifty years and say quote we lie to you and so I
guess that didn’t work out for you yes is a different ball game now if you
wanna say hey patients going forward payment week which take it then does
that work precious gotta go down that’s a different question totally the
by the way the guys making these decisions then Kevin or styles they will why in Cavite so are
you don’t trust but good news is the city’s emergency
manager on elect aged it is you know there’s no
more powerful mayor in the country then Kevin or the said
that %uh the the bankruptcy manager here the
emergency manager in Detroit the that you mention the trek I don’t
think we weld on it quite enough because what the the lawyers for the pensioners had a
agreement with the judge judge was clearly going to grant them a temporary stay against the bankruptcy
filing to protect the 30,000 pensioners up the city of Detroit and then the
lawyers for the city looking to get the bankruptcy filing
said before that court I’ll just give us five minute recess to
get our papers in order went to another court yeah and file that
and that judge like I was gonna grayer injunction but they filed with another
court you know there’s no sir that’s a that’s
a suggestion that when it comes time to make a decision between the banks where the pensioners
which way it’s going to go yet he’s gonna screw the passion she
just screwed by just cuz lied to them I mean how much can you
trust the guy who said I don’t worry okay I just just me if I’m ever gonna go take a leak
right things I I followed another court I totally
screwed you over I totally like you and that guys in
charge they call that was the white those that try those that that was the
way for the governor who did that rick Snyder right now the governor who’s that every point it having your right and it
when they call this financial martial law like the city these managers that the governor points he has
absolute power now if you get into bankruptcy though
that the judge will have some power how things are divided it said right but for the moment a financial
managers ago making all the decisions so that will then if you get it you get
it later but and by obviously but you’re not sure you can trust you in or all ever by the way with these the lease
financial managers that have of unlimited power to do whatever they want
most powerful mariner country the good thing is that the
history of these managers as they always fix the problem yeah