Detroit??

To be honest I'm torn on this re-bailout

For starters I dont' want it to happen because I'm not a fan of bailouts. But how can you make a case for bailing out banks that lead to our economic collapse or auto manufacturers who couldnt' run their business well, but not bail out the people who were effected by those 2?
 
(not argumentative)

How so?

50PoundHead said:
NYC was bailed out in the 1970s, so there is a precedent. The problem is in this instance is that there is a difference in degree of the current state of affairs and the prospects for the future than what existed in the case of NYC.
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57Brave said:
(not argumentative)
How so?
Click to expand...

How is this different than NYC in the 1970s?

I'd say two big reasons: (1) There was then, and is still now, a ton of money in NYC related to a commercial, not manufacturing base. Unless Detroit can re-attract a lot of business (without going overboard with the subsidies), they won't be able to re-build the tax base. (2) The percentage of people living in the suburbs has doubled since the 1950s and that pattern has been fairly extreme in the Detroit SMSA. I don't know if Detroit, as a city, even serves as the true hub of the SMSA anymore.

I'm fine with a bailout, but I am not optimistic in the case of Detroit that it's going to mean much unless urban living once again becomes the norm.

They should have thought about (and maybe they have) some region-wide tax base sharing before things got to this point.
 
zitothebrave said:
To be honest I'm torn on this re-bailout

For starters I dont' want it to happen because I'm not a fan of bailouts. But how can you make a case for bailing out banks that lead to our economic collapse or auto manufacturers who couldnt' run their business well, but not bail out the people who were effected by those 2?
Click to expand...

Let's see... Bailout to help prevent a run on bank deposit accounts and another Great Depression or bailout to help prevent Jim Bob Cooter from receiving less in his pension? I don't know how you can make a case between the two. They are basically the exact same thing.
 
weso1 said:
Let's see... Bailout to help prevent a run on bank deposit accounts and another Great Depression or bailout to help prevent Jim Bob Cooter from receiving less in his pension? I don't know how you can make a case between the two. They are basically the exact same thing.
Click to expand...

Maybe a depression would have done good for the country. Maybe we could have come out the other side stronger than we are now even more enslaved to Corporate empires.
 
CK86 said:
If you bail out Detroit, don't you risk setting the precedence of bailing out any big city that manages their money poorly? I'm guessing those in California will be eagerly watching how this is handled. I hope we don't bail out Detroit but with the current President and Congress, I just know it's coming.
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Looks to me like it would be the fed that does the bailing out.

Ron Paul had a great exchange with Bernanke precisely about this subject...

I can't find the full exchange but here is the gist of it

http://www.youtube.com/watch?feature=player_detailpage&v=v_V7UwmElaY&t=279
 
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