The Shock Doctrine 4: Hostile Takeover

On the surface, Detroit is bankrupt and in a water war in which tens of thousands of people face water shut-offs. But there is much more to the story... 

Real estate barons, banks, bond holders and cannibalistic corporate carpetbaggers will make out like bandits. How did this happen to our town?

Jones Day, a Wall Street-connected law firm, which stood to gain $100 million in fees for the bankruptcy, issued a report on behalf of the state that was rife with subjective...

editorializing subheads such as UNSUSTAINABLE RETIREE BENEFITS and HIGH LABOR COSTS AND RESTRICTIVE EMPLOYMENT TERMS. 

The clear attack on pensions is why many Detroit pensioners are voting no to the insidious “grand bargain” being offered right now in the enforced bankruptcy.

Emergency Manager Kevyn Orr, (as promised we are getting back to him), at the time of his appointment, was a Jones Day partner.  Coincidence? We think not.

Between March 25 and June 14, 12,500 customers had their water shut off.

Meanwhile, Joe Louis Arena, home of the Detroit Red Wings, owed $82,255 as of April. Ford Field, where the Detroit Lions play, owed more than;$55,000. City-owned golf courses owed more than $400,000. As of July 2, none had paid.

Millions of dollars are still owed to the city water department by banks and corporations holding thousands of foreclosed homes, but these have not been subjected to water shut off, even with bills months or years overdue. 

Motor City was particularly devastated by the sub-prime mortgage schemes, which targeted African-Americans, whom the banks knew could not afford the loans they promoted. Detroit had the largest percentage of sub-prime victims per capita of any city in the United States.

Half the housing stock is abandoned or set on fire and looted, while city services operate at a fraction of past accommodations—crippling citizen's ability to work and care for their children.

What we are witnessing is an aggressive form of public asset seizure.  In Detroit this is otherwise known as the Emergency "Plan of Adjustment".

A "softening up" process of collective shocks have been employed to stun the populace, paralyze their democratic process, and force austerity and mass privatization down their throats.

Detroit has become Ground Zero for a massive new wave of asset seizures, repression, and corporate exploitation that is beginning to sweep U.S. communities and states, privatizing our schools, water assets and government services.

After the austerity and privatizations, average citizens inevitably found themselves poorer as excessive debt was serviced off their backs, and lacking in basic public services and education.

Remember baby ducks, its all about the money, so follow the money.  Where's the money Lebowski?  It's uh, it's down there somewhere. Lemme take another look... More to come in Part 5.