Friday, July 12, 2013

Obama To Detroit: Son, You're On Your Own

After all, he got what he wanted from the city's residents - their lockstep votes, and they're no longer needed as he's not running for re-election again:

The Detroit News: White House not offering Detroit help to avoid bankruptcy.

The White House offered no help to the city of Detroit to avoid a potential bankruptcy filing, but a spokesman Thursday said President Barack Obama is keeping tabs on the city’s financial woes.

White House spokesman Jay Carney was asked by a reporter for the Capitol Hill newspaper Roll Call at the daily press briefing if Obama planned on doing anything to save Detroit from a possible bankruptcy filing. The president in 2009 helped finance the bankruptcy filings of Detroit-area automakers General Motors and Chrysler.

“I know that the president is aware of the situation in Detroit and that administration officials have been in contact with leaders in Detroit, but I am not aware of any plans or proposals that the president has, but we’re certainly aware of the circumstances,” Carney said.

The state of Michigan appointed an emergency manager, Kevyn Orr, to run the city, which has as much as $20 billion in debt. Last month, the city stopped making payments on some unsecured debts, including pension obligations. Orr is trying to convince some creditors to accept as little as 10 cents on the dollar in an effort to avoid what would be the largest municipal bankruptcy in U.S. history.

Orr and Detroit Mayor Dave Bing in early April met with White House officials including Obama’s senior adviser Valerie Jarrett to discuss Detroit’s financial situation, said Bill Nowling, an Orr spokesman. On Tuesday, Orr updated Jarrett and other White House officials by phone —the same day the New York Times ran a front-page story about Detroit’s finances, Nowling said.

Of course, if Obama does bail out Detroit, the precedent it would set would be very bad indeed. The likelihood that Obama would then use Federal printed money to bail out more failed blue state model cities and states after having done so for Detroit, the example of blue state failure par excellence, would be almost unavoidable.

I almost expected, and half way do expect him, to try to ride in at the last moment and do a bail out for this failed Democrat bastion of corruption and decay to try and shore up Democrat votes and supporters for the future. Then again, he's busy taking vacations, and the Democrats already have a lock on their votes, so why bother paying for that which the Democrats already get for free?

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