Detroit Becomes Largest U.S. City EVER To Declare Bankruptcy - YouTube

Channel: The Young Turks

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