Does Detroit deserve the DIA's art?

[LuckyTheDog]

My latest Detroit News blog post:

Whether or not the Detroit Institute of Arts’ collection is used as collateral or sold off to satisfy creditors will be up to U.S. bankruptcy Judge Steven Rhodes. A lot will depend on whether he agrees with people like Michigan Attorney General Bill Schuette, who says the art is held in trust for the public.

Those are the facts. That’s grim reality and it is bad enough. When some suggest Detroit actually deserves to lose the DIA because of the great failings of its recent leadership and poor judgment of its voters, they are not being helpful. That reasoning not only kicks at an already-down population, it ignores history. Yet, that theme keeps re-emerging.

<snip>

First, poor leadership in Detroit is not exactly new. It reaches back decades, even centuries. By the time Pugh, Watson and Kenyatta came along, many people came and went from city government who ignored or failed to understand trends that would lead to bankruptcy.

Second, it is not unusual for municipalities to be run by incompetent, short-sighted leaders. That’s as true for the suburbs as it is for Detroit. But the suburbs were on the lucky end of many of the same demographic and economic changes that shattered Detroit. That – much more than brilliant leadership – explains their relative affluence.

Full post here: http://blogs.detroitnews.com/politics/2013/09/09/detroit-deserve-dias-art

[KamaAina]

1. Don't the suburbs contribute to DIA?

And the city-county government model works in Nashville, Miami, Jacksonville, and Honolulu, for example. I can, however, imagine a gruesome screech emanating from the non-Detroit parts of Wayne County at the mere mention of such a proposal.

[LuckyTheDog]

2. The rest of Wayne County can suck an egg

Detroit is in the shape it is in because it borrowed money for years on behalf of people who did not stick around to pay it back. They abandoned the city and left others holding the bag. Ideally, Detroit should merge with Oakland and Macomb counties, too.

[KamaAina]

6. Oh SNAP!

I think you've got your next op-ed.

[LuckyTheDog]

7. The blog readers would show up with pitchforks and torches if I wrote that there (nt)

[KamaAina]

9. Well, you could leave out the "suck an egg" part

[caraher]

11. I think they could take the "suck an egg" part

He's absolutely right, they really need a tri-county government to reflect the economic realities of the region. But the thought is anathema.

[Romulox]

12. Have some courage--express this sentiment directly in your blog. nt

[Starry Messenger]

3. Yes!

[pa28]

4. Read Calibrese's piece only if you've had a light lunch.

He really should have disclosed right away that he doesn't believe in the public commons at all. Clearly he knows that Detroit is just a test bed for the privatization and stripping of public assets that's about to go national and that's the way he wants it.

Adopting the persona of a scolding parent while leaving out so many relevant facts is fundamentally dishonest and disgusting to behold.

Missing is the fact Morningstar recently concluded Detroit's pension fund is 90% funded despite Orr's claims and bankruptcy may not have been necessary.

Missing is the fact Orr had concluded BK was the best option before taking the EM's job and even discussed the matter with his law partners (who are profiting handsomely from legal work on the case by the way).

Missing is any mention of the new Red Wings facility which will use new public dollars in the midst of bankruptcy to subsidize a billionaire owner.

I could go on but Detroit's bankruptcy is not about punishing the guilty or reconciling debts. This is about taking public assets and moving them into private hands and always has been.

[LuckyTheDog]

8. I got into trouble in another thread re: that column

I accused Calabrese of "whitesplaining." A lot of others did not see it that way and accused me of being a racist for saying that (which would, I guess, make me a self-hating white person). I deleted my OP on that and asked the mods to delete the entire thread.

[madrchsod]

5. chisel off diego`s murals?

http://www.dia.org/object-info/c5404b86-5119-436d-a882-e76b67e4dc1b.aspx

i would`t put it past them....

[leeroysphitz]

10. We no longer need the Dia here in Detroit.

Were getting a 10 ft tall, bronze Robocop statue. How much more culture could we ask for?

http://m.animalnewyork.com/2013/heres-a-sneak-peek-at-detroits-robocop-statue/

[whttevrr]

13. Detroit needs a Federal Bailout...

I'd rather invest in a city that once produced marvels of the world than blow up wads of cash on some foreign land.

[Romulox]

14. Detroit is asking pensioners to take a haircut. How can it keep all its assets too? nt

[LuckyTheDog]

15. Ummmm... not really

The bankruptcy judge has not ruled on that. And it is unlikely that the pension funds are as underfunded as the emergency manager says they are. The notion that Detroit will keep its Van Goghs and make its pensioners eat cat food is mostly spin and scare tactics.

[Romulox]

16. No, it hasn't been ruled on, but it's "on the table", to be sure. Reality.

"spin and scare tactics."

Who are we trying to "scare"? Judge Stephen Rhodes?

[LuckyTheDog]

17. If the art is sold, the money would go to banks, not pensioners.

Don't buy into the disaster capitalism spin.

[Romulox]

18. Honestly, I don't think anybody knows what's going to happen. Pensioners, like banks,

are creditors to the city of Detroit.

As I alluded to, it's the hands of the Federal Court System at this point. It's not subject to a vote, so your comments make little sense to me--what I "buy into" isn't going to change anything.

[pa28]

19. However, bondholders are secured creditors and pensioners are unsecured.

Last edited Tue Sep 10, 2013, 11:09 PM - Edit history (1)

In court the pensions will likely be wiped out similar to the way stock shareholders are wiped out in bk as bondholders are first in line.

A liquidation of Detroits artwork and landholdings like Belle Isle will go to bondholders. So, the question become whether Detroit's artworks will remain public property or whether bondholders will take a slightly bigger haircut on the basis of their risk.

Pensions will likely get nothing from the sale.