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Welcome everyone I'm Charles payment for Neil Cavuto.
And eighteen billion dollar budget hole force Detroit to declare bankruptcy even though.
They're battling it out in court the cities trying to get creditors holding eleven billion dollars of debt to take a fraction of that to walk away.
It's also figuring out how to deal with billions and and union pension promises but.
Labor is fighting to get every penny that a candy -- -- up and refusing to back down.
Neighborhoods from beneath her new GOS says that this the big reason -- in this mess in the first place.
And our Melissa Francis is here as well Betty that's been a while but you -- forecast there's a couple years ago.
Well hey thanks Charles that they are having me -- interest in developments today but we're still not -- what's exactly going out this bankruptcy.
Looks like gay circuit court judge is saying it may violate Michigan State law it may not happen.
Which I tell you I mean it's a sad day 11 of America's greatest cities now what's with what's called the -- in the midwest.
Is forced into bankruptcy but it also gave some hope that hey maybe the city might actually get on financial footing.
But right now that's all in the -- and once again it's up in the air because of current union lawsuits.
You know -- -- let's say here's the thing it's sort of like go to Greece Portugal Spain.
It -- about and that does not necessarily make the problem go away anyway.
No absolutely it's all about making a new plan for this city and rebuilding I mean this is a city -- spent a hundred million more dollars than it took -- every year since 2008.
What did they think exactly what's gonna happen I mean they have seen the population declined dramatically 26%.
Since 2000 there -- 40000.
Buildings and homes that are standing empty.
I mean half the traffic lights in the city right now don't work.
This is a crisis and staying out of bankruptcy.
Isn't gonna solve it they need a plan to clean up their books to deal with the overspending with their debt and to bring business and life back to this city.
You know of anyone I'm -- what I think we're gonna see is because we're seeing some businesses come there I know the founders of one -- a pizza chains and also another big time businessmen or bring in people -- trying to turn into it.
-- that technology center.
But you're probably get one of these things where the people who do go there who get the tax -- haven't lived through all the the storm oil probably will make a lot of money but those Detroit residents who stayed on.
This still not gonna get -- -- -- are then.
Let -- see that's the value what what's led to -- Detroit is today you know as -- Melissa said it's a massive population loss.
It's the gross mismanagement it's corruption it's the unsustainable promises that they made for the unions.
But a lot of it is also with a client I mean it's been one of the top most violent cities in America four in the last half century.
Takes almost an hour if you call the cops crime is so bad that I thieves are stealing copper wire from.
Like -- and 40% of -- -- in the city are out so the cities plunged into darkness you have neighborhoods that might as well be on the set up bad backs.
Beyond -- -- and you gotta do something about the crime so.
I don't know if it happened in new businesses that -- -- you have to do something to help you know keep their customers say I'm very.
I think they'll figure out a way to keep new businesses sort of shelter but Melissa Vinny gets to point that no one really talks about we talk about the economics but.
I I've I've spoken to professor there who say you've got 47% in the adult population functionally illiterate about this soul -- mind -- there.
No matter how much money you give people if they're not prepared to somehow be more accountable and that figure this out then -- weren't going to be right back what we're starting from.
No you're right I mean we need to see your rebirth in this city 36% of -- population is living below the poverty line I mean it and a lot of this I hate to say it.
You know it it goes back to spending money on the wrong things I mean we have bloated pensions and health care is for retirees.
I understand those are people that worked and they were promised that money and but you know at some point -- -- is alive when you just can't pay that out instead they should be spending money.
On the city's future on the finding a way out maybe tax incentives to get more businesses in.
Perhaps education -- programs buddy you know it's about.
It's about trying to find a way forward for this city as opposed to you know pay union employees.
I'm and you know -- we got thirty seconds but it feels like it's gonna breed a free for all 2011 yeah.
Homeowners -- pay there there have been property taxes no want to put any skin in the game is certainly people start getting breaks -- -- -- business or unions.
Residents they're going to say what about me.
-- exactly and -- now there's even talk at a might be a ballot at the probably got to ask various hey where's the money get a public doubt where's the money coming from.
You have down borrowing 35 cents on the dollar.
Just to pay the normal Billiton to -- -- liabilities -- there were doing on a national level with the country and we don't want to see the disorganization of America.
-- got to tell you.
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