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Detroit's recent file for bankruptcy: a possible look into the future of what could happen to other cities here in the U.S.

Detroit just recently filed for bankruptcy, if you did not already know. The city was once a economically thriving city. The city's booming auto industry kept that city afloat since its birth. However, the auto industry here in the U.S. has saw drastically declined; we recently saw that with through GM. Labor costs here in the U.S. have pushed companies to international grounds.

Could we possible see other U.S. city's crumble because of off shore labor?
Also, what can we learn from Detroit's file for bankruptcy?

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    • Jul 25 2013: You must have forgotten about the 50 billion dollars GM received in 2009. If that is not a sign that the U.S. lost its ground in the auto industry, I don't know what is. Furthermore, after receiving 50 billion dollars, I'd hope that GM could climb back up the auto industry ladder, and congrats GM found themselves at the very top in 2012. However, even though they have paid nearly all of their debt back to the treasury, the treasury will lose roughly around 11.4 billion dollars through this exchange: through selling their shares they received as payment towards the 50 billion.

      I couldn't agree more with you when you say "we need a whole new technology for cars."
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          Jul 26 2013: NNNNNOOOOO not quite. Altho most of the "loan" was paid off, US taxpayers are holding a lot of stock that has to have a payout of $95 per share to get our ROI.... It may happen, but the new GM has not shown any really brilliant management yet and so it may not be in my lifetime...
          no big deal but it may not happen in my 2 year old grandson's life time.
          As far as making money on the deal, the Feds lost billions in tax revenues from bondholders of the old GM and lost tax revenues and paid out unemployment benefits to the thousand of non union workers at Delco Remy and other major GM suppliers. About the only real benefit to saving GM was the votes the president got from Michigan.
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        Jul 30 2013: Does anyone know why the likes of Honda and Toyota as well as all other automakers not in Detroit were never offered any bailout help? Why they were not at the table testifying before Congress about how much they need help from the American government?
      • Aug 14 2013: GM got its welfare because GM was mismanaged and well-connected. Ford didn't take government welfare.
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      Jul 26 2013: Yes, yes, yes! Ugh, it is so simple yet the process isn't being pushed. High speed rails would solve so many issues, and make life much more enjoyable for a large portion of the population. Why are we still wasting away in traffic, dying in wrecks, and pumping the air with all those delicious fumes? Oh, and as you said, it would provide a heaping pile of jobs just waiting to be filled. What are we waiting for?

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