Detroit's Bankruptcy

  • Aired:  07/25/13
  •  | Views: 43,633

Conservatives blame lavish pensions for Detroit's decline, and emergency manager Kevyn Orr wants to auction off treasures from the Detroit Institute of Arts. (2:53)

>> BOOYAKASHA.

>> Stephen: SPEAKING OF

INSTITUTIONS THAT HAVE OUTLIVED

THEIR USEFULNESS-- DETROIT.

>> NOW DETROIT HAS FALLEN ON

SUCH HARD TIMES THE CITY IS

FILING FOR BANKRUPTCY, BECOMING

THE LARGEST U.S. CITY TO DO SO

>> MOVE IS UNPRECEDENTED.

THE BIGGEST MUNICIPAL BANKRUPTCY

IN AMERICAN HISTORY.

A MAJOR U.S. CITY OFFICIALLY

DECLARING IT CANNOT PAY ITS DEBT

ESTIMATED AT $18 BILLION.

>> Stephen: $18 BILLION!

AND DETROIT BORROWED THOSE

BILLIONS FROM SOME PRETTY

SERIOUS PEOPLE.

IF THEY DON'T GET PAID, THEY'VE

THRENTED TO CUT OFF MICHIGAN'S

THUMB.

( LAUGHTER )

NOW, IT TURNS OUT, ROBO COP WAS

AN OPTIMISTIC VIEW OF DETROIT'S

FUTURE BECAUSE THE NUMBERS TELL

THE STORY.

THE CITY'S POPULATION HAS

DWIBDLE TWD 2 MILLION TO

700,000.

DETROIT HAS THE HIGHEST

UNEMPLOYMENT RATE IN THE NATION,

AND AT 73,000 ABANDONED

BUILDINGS.

KNOWING HOW FAR THE CITY HAS

FALLEN WOULD HAVE HENRY FORD

ROLLING OVER IN HIS GRAVE AND

SOMEHOW BLAMING THE JEWS FOR IT.

NOTICE, THERE ARE A LOT OF

THEORIES OUT THERE, ABOUT WHAT

CAUSED DETROIT'S DECLINE--

MANUFACTURING JOBS GOING

OVERSEAS.

CORRUPT POLITICIANS.

BUT THE EASIEST EXPLANATION FOR

DETROIT'S DECLINE IS IT'S ALL

THE UNIONS' FAULT.

>> YOU HAVE ALL THESE PENSIONS

AND YOU HAVE ALL THIS DEBT, AND

NOW IT'S JUST TAKING THEM DOWN.

>> THERE WAS OVER-GENEROUS

PENSIONS AND BENEFITS.

>> LAVISH PENSIONS.

>> LAVISH PENSIONS.

>> Stephen: YES, LAVISH

PENSIONS, ON AVERAGE $19,000 A

YEAR, WHICH DETROIT NOW SAYS

THEY WILL PAY 10 CENTS ON THE

DOLLAR.

BUT RETIREES, IF YOU BUDGET

RIGHT, YOU CAN AFFORD EVERYTHING

YOU NEED IN DETROIT-- FOOD,

RENT, A CUE BALL AND A SOCK TO

FIGHT OFF HUNGRY RACCOONS.

LUCKILY, LUCKILY, THERE IS A

GREAT IDEA OUT THERE ON HOW TO

PAY DETROIT'S CREDITORS.

>> THE TREASURERS OF THE DETROIT

INSTITUTES OF ART COULD BE IN

DANGER.

>> KEVYN ORR HAS WARNED THE

D.I.A. IT'S HUGE COLLECTION

COULD END UP ON THE AUCTION

BLOCK.

>> THEY HAVE VAN GOGH, MATISSE,

AND DIEGO RIVERA, WHICH IS

IMPORTANT BECAUSE IT WAS

COMMISSIONED BY FORD HIMSELF.

>> THEY MIGHT HAVE TO PAWN

DETROIT'S MURALS DEPICTING A

SOCIALIST WORKERS' PARADISE.

IN FACT, THEY HAVE RECEIVED A

GENEROUS OFFER FROM THE MUSEUM

OF IRONY.

IRONY.

( LAUGHTER )

NOW THE DETROIT INSTITUTE OF ART

ALSO OWNS A COPY OF RODIN'S "THE

THINKER" AND I MIGHT PUT IN A

B

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