The city that President Obama was credited with “saving” – before it turned out that he hadn’t – is getting a little help from Washington as it struggles through the largest municipal bankruptcy in American history.
Michigan officials and President Barack Obama'sAdministration are discussing a plan to free up $100 million in federal money to aid Detroit's retired city workers, the Detroit Free Press reported on Tuesday.
Citing two people familiar with the talks, the newspaper said the talks were centered around federal money flowing to Michigan for blight removal. Under the plan, $100 million would be earmarked for Detroit, reducing the $500 million the city's emergency manager, Kevyn Orr, plans to use to eliminate blight over the next 10 years.
The $100 million saved could then be used by Orr to ease pension cuts for retirees under the city's plan to adjust its $18 billion of debt and exit the biggest municipal bankruptcy in U.S. history, according to the report.
It isn’t much money, measured against how prosperous the Motor City once was and how deep the hole now is, after years of corrupt, one-party rule.
But you have to start somewhere.Washington looks after its friends and figures, no doubt, that taxpayers a generation from now will understand and be good for the money.
The script is familiar. General Motors’ top executive heading down to Washington to be grilled by Congress. As Joseph B. White of Market Watch reports, fifty years after the Corvair controversy that made Ralph Nader a household name:
Obamacare is like an onion: The more layers you peel back, the worse it smells. The latest revelation about this horrible law is the presence of a “risk corridor,” a euphemism for an insurance industry bailout that will occur sometime in the next year.
Robert Laszewski—a prominent consultant to health insurance companies—recently wrote in a remarkably candid blog post that, while Obamacare is almost certain to cause insurance costs to skyrocket even higher than it already has, “insurers won’t be losing a lot of sleep over it.” How can this be? Because insurance companies won’t bear the cost of their own losses—at least not more than about a quarter of them. The other three-quarters will be borne by American taxpayers.
Detroit failed after years of one-party rule (guess which one), mismanagement, and corruption. Businesses closed down. Buildings were left derelict until they were torched for the fun of it. Feral animals roamed the streets as the people fled. After the usual protestations that it would never happen, city officials were compelled to declare the largest municipal bankruptcy in the nation's history.
On the floor of the Senate today, Harry Reid, a Democrat, praised President Obama's auto bailout:
"As a matter of fact, Mr. President, the figures are really staggering," said Reid. "500,000 manufacturing jobs have been added, 1 million jobs have been saved due to the president's auto rescue program. So that's a fairly significant change."
The legislation to help those affected by Hurricane Sandy has been turned into something of a mini auto bailout, according to those familiar with the Obama administration's request. The request includes millions of dollars worth of cars, to be paid for by the federal government.
Obama's request, as detailed in a letter sent to Capitol Hill by the director of the White House's Office of Management and Budget, Jeffrey Zients, includes these requests:
The auto bailout debate, already a triumph of narrative over reality, took another turn for the absurd last week as both presidential campaigns exchanged salvos over what amounted to a misunderstanding about Chrysler's plan to build Jeeps in China.