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October 31, 2014

Snydergate

Here is why I am not voting for Rick Snyder and it will be the first time I vote for a Democrat for Governor since 1968, which was the first year of being eligible to vote. It is not because I think Schauer is so wonderful. It is because I remember Richard Nixon.

Even though he resigned from office, I believe Richard Nixon did not understand what he did wrong by breaking into the Democratic Headquarters in the Watergate Office Complex in Washington D.C.. President Nixon felt it was in the best interest of the country for him to remain as President and that is why he felt justified in committing the crime we call Watergate.

Rick Snyder had a similar attitude about the Emergency Manager Law and when it was defeated by the voters in 2010 he decided legislation was needed to usurp the will of the people. Like Richard Nixon, Rick Snyder is not dumb and coming from the business world where the CEO pretty much controls the Board of Directors, he took it upon himself to correct the “wrong” of the wishes of the citizens of the state. With the state legislature controlled by the Republicans, a new emergency manager law was passed.

Unfortunately, the law was passed without providing proper checks and balances , commonly referred to as internal controls in the world of a Certified Public Accountant, which Snyder is. The idea of providing checks and balances is to avoid providing the vesting of absolute power in the hands of one individual. Or as Lord Acton who was an English Catholic historian in the late 1800's said, "Power tends to corrupt, and absolute power corrupts absolutely.”

Under the new law, the Governor appoints a local Emergency Financial Assistance Loan Board consisting of the State Treasurer of Michigan, Director of Licensing and Regulatory Affairs and the Director of Technology, Management and Budget. Kevyn Orr reports to this Board. All of the members of this Board are part of a Republican administration that is very unlikely to win a majority of votes in a city that has always voted Democratic. As a result the Governor had little to lose by imposing his will on the citizens of Detroit.

Some people reading this will say “no harm, no foul.” There is a big foul contained in the Grand Bargain included in Detroit's Plan of Adjustment which is part of the proposal presented to Judge Steven Rhodes regarding Detroit's bankruptcy. The Judge will be rendering his ruling on Friday, November 7, 2014. The problem is the Grand Bargain gives away billions of dollars of city assets for pennies on the dollar. These assets are the artworks stored at the DIA. The white wash is the art will remain in the city. The black spot is the city will not own it and as a result the net worth of the city is recklessly reduced by billions. It makes one wonder whether my idea of a fictional screen play called Mitten is not coming true. More

7 comments:

  1. The 'grand bargin' does not include the DIA art.

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  2. You are wrong. The art is being taken from the city and given to a Trust. The city will no longer own it. It is true the art will remain in the city but not owned by the city.

    It is like after a bank forecloses on your house it remains at its present location but you no longer own it and your net worth has decreased.

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  3. Option 2 was chapter 7 sell off everything and disincorporate. You are an idiot. Something had to be done and this is a federal judge, not Snyder.

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  4. There was no way for Detroit to pay its debts. They had defaulted and were subject to seizute of. Assets were being frozen as judgments mounted.

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  5. Taking away $10 billion in assets for $800 million in debt forgiveness was not necessary to make the bankruptcy happen.

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  6. I was and am in favor of a chapter 9 bankruptcy. I am not in favor of making it harder for the city to recover by needlessly reducing the net worth of the city by $9.2 billion.

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  7. Super commentary

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