Obama To Detroit: ‘No Bailout For You’

Related info:

‘I Refused To Let Detroit Go Bankrupt’ – Barack Obama, October 2012 (Video)


Obama To Detroit: “No Bailout For You” (ZeroHedge, July 19, 2013):

While in the past President Obama has been more that willing to throw good money after bad and “refuse to let Detroit go bankrupt,” it seems when push comes to shove – under the intense scrutiny of a nation awash in scandal, a drastically bifurcated congress – that despite the imploring from local congressmen for “moar” already – that the savior of the city will not this time ride to the rescue on his white horse. In a statement, the White House said they “are monitoring the situation in Detroit closely,” with no hint – just as they have made clear for months – of any sort of Federal bailout. As USA Today notes, the federal government provided federal loans to prevent New York City from declaring bankruptcy during the 1970s. But times have changed; the federal government has debt and financial problems of its own, and a Detroit bailout could run into significant opposition in Congress and cause serious damage in the Muni market.

While the GM debacle put pensioners ahead of creditors, it would be unprecedentedly bad for the massive Muni bond market should Obama acquiesce and change the law once again to put pensioners ahead of GOs…

The White House statement on Detroit.

The president and members of the president’s senior team continue to closely monitor the situation in Detroit.

While leaders on the ground in Michigan and the city’s creditors understand that they must find a solution to Detroit’s serious financial challenge, we remain committed to continuing our strong partnership with Detroit as it works to recover and revitalize and maintain its status as one of America’s great cities.”

Translation: “sorry guys, you’re on your own on this one!”

1 thought on “Obama To Detroit: ‘No Bailout For You’”

  1. Of course no bailout. He isn’t running again, and this is part of the corporate takeover that is strangling the life out of this nation.
    23 cities and municipalities have filed bankruptcy since 2010…………one third of all related bankruptcies over the last 63 years. Doesn’t that tell everyone something?
    Now, the elected people will be tossed out, and bureaucratic bean counters belonging to the banks will take over. They will grab and sell off any remaining assets for pennies on the dollar to their greedy gut friends, and move on, leaving the city in a pile of rubble. There will be no chance of recovery, because they will steal whatever wealth is left.
    This is part of the corporate takeover of America. Sickening.

    Reply

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