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alstry (35.03)

9.09....Bankruptcy Time!!!!!!!!

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July 11, 2009 – Comments (12)

The Detroit Public Schools may have no choice but to file for Chapter 9 bankruptcy, which would make it the first big-city school district to use bankruptcy court to avoid paying millions to vendors, employees and bondholders, experts said Thursday.

DPS Emergency Financial Manager Robert Bobb is continuing to consider the option and met Thursday with retired U.S. Bankruptcy Judge Ray Reynolds Graves.

Jim McTevia of McTevia & Associates of Bingham Farms, which works with companies with serious financial troubles, said DPS has three choices to solve its projected $259-million budget deficit: raise more money, cut costs or declare bankruptcy.

More revenues are extremely unlikely, given DPS's projected enrollment decline of 12,000 students and anticipated state funding cuts. McTevia estimated DPS would have to cut its costs as much as 50%, an almost impossible feat given that more than 80% of most school district costs are salaries and benefits mandated by contracts.

Bobb, a state appointee who took charge of the DPS budget in March, was not able to balance the 2009-10 budget, which totals about $1.2 billion and calls for $21.8 million in debt service payments on bonds sold to eliminate past deficits.

"They're going to have to reduce their debts, and the only vehicle is through the court system," McTevia said.

http://www.freep.com/article/20090710/NEWS01/907100316/With--259M-deficit--DPS-may-wind-up-in-bankruptcy

EXPECT MORE AND MORE STORIES LIKE THIS AS THE ZOMBULATOR INFECTS OUR SYSTEM WITH THE FU VIRUS AND ZOMBATIC FALLOUT HITS IN PLACES YOU WOULD HAVE NEVER FORESEEN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Remember, it was Alstry and The Institute of Alstrynomics that made the call FIRST AND EXLUSIVELY ON CAPS!!!!!....that 70-90% of America will go bankrupt before we bottom out........................................including state and local governments and municipalities, corporations, and individuals.

As we proceed into Fall, we are just entering into the bankruptcy phase of MASSIVE  municipal defaults, HUGE corporate defaults, and EXPLOSIVE individual insolvencies.

And just think, some Foolish Fools were calling for a second half  recovery as Alstry was projecting the acceptance of THE GREATEST DEPRESSION in World History. 

This is NOT THE END OF THE WORLD.....simply the foundation for a NEW BEGINNING!!!!!!!

Alstrynomics is working on ways to prepare for a New Alstrynomic Perspective due to a post dynamic destructive dimentional development destroying delusional dialogues delivered daily.....something which should be apparent by 9.09.

9.09.....The New Alstrynomic Time......................................................................................

 

12 Comments – Post Your Own

#1) On July 11, 2009 at 2:20 PM, alstry (35.03) wrote:

ALSTRY KNEW.....WHY DIDN'T YOU???????  It's not much time until 9.09...........

WASHINGTON – Not enough relevant officials were aware of the size and depth of an unprecedented surveillance program started under President George W. Bush, let alone signed off on it, a team of federal inspectors general found.

The Bush White House pulled in a great quantity of information far beyond the warrantless wiretapping previously acknowledged, the IGs reported. They questioned the legal basis for the effort but shielded almost all details on grounds they're still too secret to reveal.

The report, mandated by Congress last year and delivered to lawmakers Friday, also says it's unclear how much valuable intelligence the program has yielded.

On the subject of oversight, the report particularly criticizes John Yoo, a deputy assistant attorney general who wrote legal memos defending the policy. His boss, Attorney General John Ashcroft, was not aware until March 2004 of the exact nature of the intelligence operations beyond wiretapping that he had been approving for the previous two and a half years, the report says.

The report, compiled by five inspectors general, refers to "unprecedented collection activities" by U.S. intelligence agencies under an executive order signed by Bush after the Sept. 11, 2001, terror attacks.

Just what those activities involved remains classified, but the IGs pointedly say that any continued use of the secret programs must be "carefully monitored."

Most of the intelligence leads generated under what was known as the "President's Surveillance Program" did not have any connection to terrorism, the report said. But FBI agents told the authors that the "mere possibility of the leads producing useful information made investigating the leads worthwhile."

http://news.yahoo.com/s/ap/20090711/ap_on_go_co/us_domestic_surveillance

Are you ready to leave the Matrix????????????????????????

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#2) On July 11, 2009 at 3:14 PM, dickseacup (67.69) wrote:

Are you ready to leave the Matrix????????????????????????

At this point, I wish it'd just hurry up and start. Whatever "it" is.

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#3) On July 11, 2009 at 6:10 PM, alstry (35.03) wrote:

dick,

The entire economic system is bankrupt and government/fed is only bailing out the bankers.

As more and more run out of money, fewer and fewer will have much to spend.  As fewer and fewer spend, the greater the defaults.  Soon the distress will escalate to such high levels, something will have to be unleashed to refocus the poplulation away from their distress.

What exactly that something is will be revealed soon....prepare!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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#4) On July 11, 2009 at 7:35 PM, lquadland10 (< 20) wrote:

Now that you have scared the holly crap out of me Will you please write something I can do. I don't have much money and what little I have goes for food and water stock up. I work at a bookstore and have little old ladies who are so scared. Please let me know what it is that I can tell them to do to prepare.

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#5) On July 11, 2009 at 7:53 PM, oshiri (< 20) wrote:

Hey Big Al . . .

Have you seen (in the latest Barron's) or read about "Re-Deflaut Performance on Current and Delinquent Loan Modifications"

http://seekingalpha.com/article/127292-mortgage-modification-programs-are-10x-more-expensive-than-you-think

In a nutshell, Barlay's Capital has finally "discovered" that loans mod have become worse performers than the original disease of delinquencies.

The chart is Barron's will make your eyes bug out!

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#6) On July 11, 2009 at 7:58 PM, alstry (35.03) wrote:

lquad,

Alstry never intends to scare you....simply prepare you.

We are all in this boat together.......and when things change, it will change for all of us, not just a certain class.  Those that are currently "well off" right now may not be well off in the future.

Much of the "rich's" assets are only valuble in this era, and will likely not be valuble in the new era.

Think of this transitional time as a reset where most of us start off at about the same level.  Do you think those that were swimming in the water after the Titanic sank distinguished themselves between First Class and Steerage????

Stocking up will not likely help.  But if you want to buy a few cases of bottled water, a few ounces of metal, and some cereal...that is fine it it make you feel better....but probably not necessary.

Buying machine guns, planting gardens, and preparing for the end of the world will likely not be very effective during the transitional period.

It will be a time of change.....with change come uncertainty....and with uncertainty comes stress.  As long as you are prepared for change, the stress from uncertainty should be controlled.

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#7) On July 11, 2009 at 8:00 PM, alstry (35.03) wrote:

oshi,

How hard was that to predict??? .....and it will only get worse.

But at this point, I am not sure China will be any better;)

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#8) On July 11, 2009 at 8:10 PM, oshiri (< 20) wrote:

Sempai ...

I agree, but at least the Commies won't mailine some vaccine into me like the U.S. Instead they'll just quaratine my @ss for 3 months :^D

And when I get out, my Yuan should have gone up even more against the Dollar.

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#9) On July 11, 2009 at 8:53 PM, RonChapmanJr (97.20) wrote:

Stocking up will help and being able to guard your stockpile will also be a good idea.

Hope for the best and prepare for the worst.

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#10) On July 11, 2009 at 9:31 PM, prose976 (< 20) wrote:

I was just looking through an old Life Magazine.  It covered the entire 70's decade.  Guess what?  We're repeating that decade.

There are events happening every day, all around us, so don't let alstry panic or worry you that something of catastrophic proportions is going to tear apart the fabric of society. 

We've already been experiencing and epidemic of insolvency.  What will come of it as states and schools and business go bankrupt?  The same thing that happens when individuals go bankrupt...the ones who are owed the debt are out of luck.  Too bad.  And unless they have the "fire power" to take action against their debtors, life will go on as usual. 

I see a high likelihood of violence on a small scale against the "responsible parties" and against government representatives and officials by disgruntled employees, citizens, vendors, etc.  But this is common throughout history, so when something along these lines actually happens, alstry will claim that "he called it!" 

Just watch the news (national and international) on 9.09.  There will be something, somewhere in the world that alstry will claim is his prophecy coming true.

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#11) On July 13, 2009 at 1:14 PM, FSUSully (88.30) wrote:

I live in Detroit and I would argue that the bankruptcy of DPS has little to nothing to do with our current macro situation.  I am sure it's not helping but this school system has been mismanaged for decades.  Couple this with shrinking revenues (because they get paid per student and people are ditching town, not moving in) and you are left with our current situation.  Bobb has done a fantastic amount of work so far but without amending the teacher contracts (which he can't do outside of bankruptcy) all he can do is go through the courts.  Once the labor contracts are reworked to reflect the real world and not fantasyland (they still have $2 copays in Detroit) they can start over.  Of course, they will still have the same inept school board so no guarantees things will get any better in the long run.

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#12) On July 13, 2009 at 2:06 PM, Alwaysgolong (< 20) wrote:

I grew up a bare footed white kid on a dirt street in a black neigborhood.

Not many things scare me...

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