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Response to badtoworse (Reply #12)

Thu Jun 20, 2013, 12:51 AM

13. the superficial mainstream explanation is always the most obvious. but generally not the most

 

correct.

the top taxpayers in detroit are *corporations,* not homeowners. the rich are not invested in detroit because it's 'a nice place to live'.

who likes detroit's debt? wall street.

Only Wall Street Wins in Detroit Crisis Reaping $474 Million Fee

The largest part is $350 million owed for derivatives meant to lower borrowing costs on variable-rate debt.

Municipal borrowers from the Metropolitan Water District of Southern California to Harvard University in Cambridge, Massachusetts, have paid billions to banks to end interest-rate swaps that didn’t protect them.

“The banks promise to get you the money and say you can pay later,” said Greg Bowens, spokesman for Stand Up For Democracy, a Lansing group that campaigned last year to repeal the law allowing appointment of a financial manager. “They get their fees off the top, and you trust that they’re doing what’s in your taxpayers’ best interest.”

As banks were collecting fees from bonds, some targeted city homeowners with subprime loans that led to foreclosures, depressing real-estate values and tax revenue, Sole said.

http://www.bloomberg.com/news/2013-03-14/only-wall-street-wins-in-detroit-crisis-reaping-474-million-fee.html

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Fire Walk With Me Jun 2013 OP
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LineLineLineLineLineLineReply the superficial mainstream explanation is always the most obvious. but generally not the most
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