In October of 2012, President Barack Obama triumphantly declared he “refused to throw in the towel” and “let Detroit go bankrupt.”
On July 18, 2013, Detroit went bankrupt.
“We refused to throw in the towel and do nothing. We refused to let Detroit go bankrupt. We bet on American workers and American ingenuity, and three years later, that bet is paying off in a big way,” Obama said in his weekly address.
To be fair, it seems that Obama was touting Detroit as an example of how his administration “saved” the automobile industry. Clearly though, this administration’s big government policies were still not enough to save the city from economic ruin.
Biden also made a similar argument during a vice presidential debate with Paul Ryan in 2012:
Detroit, on Thursday, became the largest city in U.S. history to file for bankruptcy, as the state-appointed emergency manager filed for Chapter 9 protection.
Kevyn Orr, a bankruptcy expert, was hired by the state in March to lead Detroit out of a fiscal free-fall and made the filing Thursday in federal bankruptcy court.
“Of course, what the rest of the unsuspecting US citizenry is likely unaware of yet is that once again the municipal workers’ pension plans (that face 90% losses) will be bailed-out via the Pension Benefits Guaranty Corporation (PBGC) – A US Government (ponzi) Agency. But of course, that’s for the good of the whole nation,” according to Zero Hedge.
The Associated Press contributed to this report. Featured image via Getty.