Detroit's bankruptcy could spell good-bye for "Howdy Doody"

[Sunni Man]

CNN) -- Could a wooden marionette help solve Detroit's budgetary woes? With Detroit's declaration on Thursday of bankruptcy, some of the city's creditors may think so.

The museum of the Detroit Institute of Arts, home to 60,000 pieces of art, is also home to the original Howdy Doody marionette puppet that was the star of its own 1950s-era children's show. It was acquired in 2001, according to the DIA's director of communications.

"It is estimated that the marionette could sell at auction for $400,000 to $500,000," said Gary Busk, a puppet collector who was featured on the television program "Antiques Road Show."

That would hardly make a dent in the city's immense $18 billion debt. But, despite an opinion from the state's attorney general that appeared to assure Howdy would stay, legal experts say there's still a risk he could wind up packing his bags and riding into the sunset with many of the museum's other residents.

The arts institute's director, Graham Beal, maintains that DIA's collection is among the top six in the Western Hemisphere. While he could not specify a value, Beal told CNN in May that it would likely be in the billions of dollars.

Detroit's bankruptcy could spell good-bye for Howdy Doody - CNN.com

 

[Sunni Man]

 

[waltky]

Granny says, "Dat's right - dey only interested in bailin' out the big Wall St. banks...

Feds showing little enthusiasm for Detroit bailout
20 July`13 > WASHINGTON (AP) — During the bleakest days of the Great Recession, Congress agreed in bipartisan votes to bail out two of Detroit's biggest businesses, General Motors and Chrysler.

Today, however, there seems little appetite from either Democrats or Republicans in Washington for a federal rescue of the birthplace of the automobile industry. Detroit now stands as the largest American city ever to file for bankruptcy protection. Such a bailout would be huge, perhaps as much as $20 billion. Federal resources are strained, with the national debt at $16.7 trillion and the federal government struggling under the constraints of automatic spending cuts that took effect in March.

President Barack Obama has had a hard enough time getting his present proposals though Congress, where Democrats hold a narrow majority in the Senate and Republicans are in firm control of the House. "I think it would be a waste of the president's time to even propose it. His plate is so full and throwing Detroit into the mix is the last thing in the world he'd want," said Ross Baker, a political science professor at Rutgers University who specializes in Congress. "I think the era of big government bailouts is over." Political leaders in Washington haven't pushed for a bailout of Detroit, which was the nation's fourth-largest city in the 1950s but since has had a declining population, accelerated by hard times for the auto industry during and right after the punishing 2008-2009 recession.

Congress is still in near-gridlock territory. Opportunities for spending vast sums of money on a bailout for Detroit seem severely limited. The White House is taking a wait-and-see approach, but clearly exhibiting little enthusiasm for another big bailout. "Can we help Detroit? We don't know," Vice President Joe Biden said in a response to a reporter's question about a possible federal rescue. Presidential spokesman Jay Carney, when asked directly if a bailout was a possibility, appeared to rule out such assistance. "We will, of course, as we would with any city in this country, work with that city and have policy discussions with leaders in the city, and make suggestions and offer assistance where we can," Carney said. "But on the issue of insolvency ... that's something that local leaders and creditors are going to have to resolve. But we will be partners in an effort to assist the city and the state as they move forward."

Local leaders aren't pushing for a federal bailout after the city filed for Chapter 9 bankruptcy protection Thursday, and Republican Gov. Rick Snyder isn't, either. "People should not expect bailouts at either the federal or the state level," Snyder said in an interview with The Associated Press. "We've been very diligent about this. We want to be a supportive partner at the state level. I believe the federal government does (too)." Members of Michigan's congressional delegation aren't clamoring just yet for a federal bailout. "We just need to step back and think about it," said Rep. Sander Levin, D-Mich. The city's emergency manager, Kevyn Orr, says that for now, Detroit will stay open, bills will be paid and city services provided.

More Feds showing little enthusiasm for Detroit bailout

 

[usmcstinger]

Let's reward Cities that failed to fix their problems. The City Manager stated that Bankruptcy was the best
course of action.

 

[editec]

What a shame when public collections have to be sold to pay off public debts.

 

[Moonglow]

Many cities went bankrupt in the eighties.

Congress enacted federal bankruptcy legislation for municipalities in the 1930s. Since 1980, there have been 270 muni bankruptcies, according to data from the U.S. court system. Last year, 13 municipalities filed for bankruptcy protection, according to Reuters. But the recent filings have been noteworthy.

Jefferson County, Ala.: The county filed last November, citing more than $4 billion in debt. In terms of dollar amount, the filing is the largest civic bankruptcy in U.S. history, according to The Huffington Post.
Stockton, Calif.: The city filed for bankruptcy at the end of June, becoming the largest American city, in terms of population, to seek protection from creditors under Chapter 9. City officials estimate that Stockton, which has just fewer than 300,000 residents, could owe creditors as much as $1 billion, according to CBSNews.com.
Harrisburg, Pa.: The city has an estimated $400 million in debt, and a judge rejected that city's bankruptcy petition because it violated state law, according to CNNMoney.com.
San Bernardino, Calif.: Just a month after Stockton, this Southern California city announced its decision to file bankruptcy. It had more than 200,000 residents. The move has prompted many to worry that other cities might follow suit, according to CBSNews.com.

Read more: What Happens if Your City Goes Broke, Files Bankruptcy? | Fox Business

 

[B. Kidd]

Build a wall w/barbed wire around Detroit and make it a penal colony.