Jerry White of the Social Equality Party describes how Detroit is currently being carved up by the bankers in what will become a model for other American cities in decline.
Detroit, the former auto capital of the world, is in the final stages of a bankruptcy process that has from the start been a conspiracy of the banks against the city’s working class population. Closing arguments in federal bankruptcy court are scheduled to begin next week, a legal formality before the city’s brutal restructuring plan is approved by the judge.
The so-called “Plan of Adjustment” will gut the pensions and health benefits of more than 30,000 current and retired city workers, sanction the sell-off of public assets, and provide a legal fig leaf for the termination of water and other vital services to entire working class neighborhoods.
Last week, some 200 investment bankers from throughout the US gathered at the Center for Venture Capital and Private Equity Finance at the University of Michigan to discuss the business opportunities emerging from the carve-up of Detroit.
California cities’ bankruptcies: Blame the housing bust. [latimes.com] – From reading the voluminous accounts of the fiscal woes of Stockton and San Bernardino, you’d think that municipal unions and feckless city officials are primarily what led these cities down the path to fiscal ruin.
But you’d be wrong. What bankrupted Stockton and San Bernardino were the most severe housing busts in the nation. What bankrupted those two cities were banks peddling subprime mortgages to poorly paid workers.