Archive for bankruptcy

Chart of the Day- Detroit Vs. The World



Disclaimer: I am an unabashed Detroit lover since 1978. Too many good times and good people not to love it.

Somehow I missed this chart a few days ago. As Detroit is parceled out bit by bit, even it's precious artwork doled out like trading cards, the U.S. Government is tossing cash at foreign countries like rose petals on a honeymoon bed.

Now I know that a lot of this "cash" that goes overseas is just a ruse because the countries in return just buy our weapons to stockpile (remember that military industrial complex?). So, I'm thinking that Detroit proper should look into investing in some tanks (they could use them instead of bulldozers to tear down buildings), and maybe some smallish rocket launchers (lots of Canadian geese to shoot at, then give them to food banks to feed the poor). You get the idea.

Maybe if Detroit promised to continue the boondoogle of money-weapons-money and back again that all these other countries are complicit in, just maybe the government would help to save one of our most important cities.

Chart via.


Run Donald, Run


Donald Trump

As a general rule, there're few fates worse than death -- living under a republican rule in time of national financial crisis would rank up there. One step that could make it even worse would be living under republican rule with The Donald as The Boss. C'mon, just think about it. Mr. "You're Fired" would no only be ridiculous, but destructive. Here's a man who can't give a straight answer to a simple question, but rather lives by deflection. He goes bankrupt but deflects that with suing actress/host/comedienne Rosie O'Donnell for bringing it up -- of course drawing even more attention to the The Donald's checkered financial past. For the record, Forbes reports Trump or his holding companies have filed for bankruptcy protection four times: 1991, 1992, 2004 and 2009.

But how awful it must be, yes, even worse than death, to live in the infamy of going from top of the world (Trump Towers) to being a panhandler on the street in rough times. A run for the presidency has it's risks, especially when you're pledging to put up your entire personal fortune.

There's no crime, BTW, in filing for bankruptcy. Many people have done so and recovered nicely. There shouldn't be a negative stigma attached, especially when you resurface from that protection and do so strongly. Among those who filed and were protected under this law according to CNN, were Henry Ford (1901), Walt Disney (1923), Milton Hershey (Candy bar guy)(1882), H.J. Heinz (ketchup)(1875), P.T. Barnum (1855).

Abe Lincoln

As for how it should affect you in presidential aspirations? It's certainly not a stigma that has destroyed everyone who sought the highest office of our land. We've have had four presidents who filed for protection. Among them are Thomas Jefferson (several times) William McKinley (just three years before his election), U.S. Grant and the ol' honest man himself, Abe Lincoln.

So precedent is there. And now with the recent announcement that Donald Trump might be willing to put up his wealth for a run makes me wonder, has anyone gone bankrupt by running -- lost everything? If anyone could, it would be DT.

How full of himself is he? He's crazy. The bats##T kind. He may even be clinically a paranoid schizophrenic. Look at this definition of what I'm talking about:

Paranoid schizophrenia  is a  mental disorder characterized by a breakdown of thought processes and by a deficit of typical emotional responses.[1] Common symptoms include auditory hallucinations, paranoid or bizarre delusions, or disorganized speech and thinking, and it is accompanied by significant social or occupational dysfunction.

Judge now, lest we be judged. But I'm just sayin'...

Listen to this recent interview and draw your own conclusions:

So getting back to the opening point of this essay, fates worse than death. Being under the rule of a crazy person's authority has got to be worse. And Trump could be that guy. So could Rand Paul, Ted Cruz, Marco Rubio or Rick Santurum, but they're a different kind of crazy. Trump's clinically nuts. And how does bankruptcy enter into all of this?

The Donald needs conservator-ship. He needs to be protected from himself. If he's encouraged, even in the least to run for president, he'll lose. That's hard to take, just ask Al Gore, Bob Dole, Mitt Romney. They disappeared, but they still had money. Trump will go bankrupt again -- for a fifth time. No one can be expected to recover from that. Who will trust this birther with delusions of grandeur?

Trump Tower

With five bankruptcies to his name, not even Trump Tower would allow him to qualify for employment as their doorman, as they have strict Trump Industries screening rules as to who can be trusted to open the door there for visitors. So Donald, think long and hard. Would you rather say "You're fired," or would you rather be saying "Good day, welcome to my former home?"


Detroit proposes plan to turn to "Obamacare" to ease bankruptcy costs


 chart obamacare repeal

Via Think Progress

Visit for breaking news, world news, and news about the economy

So will the GOP blame thank Obama and his evil Marxist socialist Kenyan Muslim Affordable Care Act for helping Detroit cope with bankruptcy, financial martial law (see above video), and failed GOP state and national economic policies, erosion of public services, union busting, and deregulation? Will they admit their hypocrisy?

You can stop laughing now.

Via the New York Times:

As Detroit enters the federal bankruptcy process, the city is proposing a controversial plan for paring some of the $5.7 billion it owes in retiree health costs: pushing many of those too young to qualify for Medicare out of city-run coverage and into the new insurance markets that will soon be operating under the Obama health care law.

Officials say the plan would be part of a broader effort to save Detroit tens of millions of dollars in health costs each year, a major element in a restructuring package that must be approved by a bankruptcy judge. It is being watched closely by municipal leaders around the nation, many of whom complain of mounting, unsustainable prices for the health care promised to retired city workers.

Similar proposals that could shift public sector retirees into the new insurance markets, called exchanges, are already being planned or contemplated in places like Chicago; Sheboygan County, Wis.; and Stockton, Calif. [...]

[T]he health law’s guarantee of federal subsidies to help people with modest incomes afford coverage has made the new insurance markets tantalizing for local governments.

The downside: Policies bought through an exchange could be more expensive for retirees than public sector health plans. On the other hand, some could end up spending less on coverage bought through the online markets than they do now.

And because Michigan is under King Rick Snyder's control, it is one of the Republican states that opted out of expanding Medicaid. Way to go, Ricky!

what's the matter with michigan


Cartoons of the Day- R.I.P. Twinkie




Romney's Bain investment record: Three times the bankruptcies of fed investments


Cartoon via Lalo Alcaraz

Your Daily Dose of BuzzFlash at Truthout, via my pal Mark Karlin:

Jon Stewart lacerated the myth of Romney's alleged expertise as a venture capitalist the other night. (See video here.) Quite simply, under Mitt's leadership, Bain Capital had a worse investment record than the federal government's backing of alternative energy companies (e.g., Solyndra).  

In fact, Romney's record at Bain showed him picking firms that went into bankruptcy at three times the rate of the fed record.

Stewart started by quoting part of Romney's "closing argument" to the American voters:

The government of the United States is not a very good venture capitalist …. [Obama] doesn't just like picking winners and losers, he likes picking losers.  Half of the ones [alternative energy companies that the government has invested in under Obama] have gone bankrupt.


Whoa! So Romney's accusation of a 50 percent bankruptcy rate as a result of Department of Energy financial support (in loans and subsidies) to alternative energy firms is at best actually 8 percent. [...]

So that's 8% failure for government investments in alternative energy firms vs. a 22% bankruptcy record under Mitt Romney's leadership at Bain. [...]

When Romney's bankruptcy record, as he ironically promotes himself as a "job creator," is just about three times the rate of Obama's as president, it's clear the "job creator" is really (particularly when combined with his slash and burn labor strategies) a job destroyer.  He's also a liar, and his dissembling is meant to hide one of the greatest myths of the campaign: that private investment is more effective at stimulating the economy, when Romney's own record as the CEO of Bain Capital shows that it isn't.

Please read the entire post here.


Once again Romney-Ryan misspoke, lied, flip-flopped, and Etch A Sketched


I'm dizzy. No, no, not from being a ditz, because I'm not a ditz, despite occasional evidence to the contrary. No, I'm dizzy because my head is spinning from trying to keep up with all of Willard's and Lyin' Ryan's constantly shifting policy positions, lies, and "misspeaks" (if that's even a word).

Here's today's edition. Enjoy! And don't forget your Dramamine!

Rachel Maddow tweeeted:

Paul Ryan spokesman says Ryan "misspoke" on bankruptcies:

Fact Check: Paul Ryan's Jimmy Carter Comments...

So did he misspeak or purposefully manipulate the data to make it sound worse?

"He obviously misspoke, but it's still an apples to apples comparison," Ryan spokesman Brendan Buck said. "The point remains: bankruptcies are up dramatically under President Obama compared to the Carter years."

Yet it's important to note that bankruptcies are down dramatically under President Obama, compared to the Bush years. [...]

Politicians are known to both misspeak and fudge the data, but not all are as close to the numbers as Ryan, who in Congress studies them himself, instead of leaning on aides to do it for him.

And this:

Campaign won't say if Romney "misspoke" re abortion, but says he doesn't hold position he claimed last month:

Is Mitt Romney shifting his abortion position again?

It's fairly well-known that Romney proclaimed himself in favor of abortion rights when he ran for office in Massachusetts, then reversed himself before launching his presidential bid. But recently, the GOP nominee seems to be softening his opposition somewhat. Or is he?

The L.A. Times is reporting this:

A Romney change on climate science.

At the Republican National Convention last week and in at least one stump speech over the weekend, Republican presidential candidate Mitt Romney used climate change as a laugh line ridiculing President Obama’s priorities.

But in comments to the Science Debate website Tuesday as part of an online debate organized by a consortium of scientific organizations, the Republican candidate took another position, similar to the more moderate stance he struck last year, when he conceded that the planet was getting warmer.



Gingrich group files for bankruptcy


Oh noes! Newton Leroy Gingrich Inc. has gone all bankrupt on us! Damn you, Tiffany's! Damn you... everything else!

Via First Read:

In a Chapter 7 filing in the U.S. Bankruptcy Court, Northern District of Georgia, The Gingrich Group LLC, doing business as the Center for Health Transformation, filed for bankruptcy Wednesday.

The vast majority of Gingrich's net worth is tied up in the Gingrich Group. Gingrich is worth overall between $7.1 million and $31 million, according to his financial disclosure. He lists a promissory note from Gingrich Group as being worth between $5 million and $25 million. Gingrich was chairman of the group until May of last year, when he announced he was running for president.

Once Newtie ran for president, the money stopped flowing to the group.

And it has been a source of controversy, as questions were raised -- and other campaigns questioned - whether Gingrich acted as a lobbyist on behalf of the group in Georgia.

And just how, again, would Gingrich plan on managing the country's finances when he can't manage his own?

The bankruptcy filings: Part 1, Part 2.