dave bing andor before that michigan governor rick snyder. the chapter nine bankruptcy filing has set off what could be a prolonged legal battle with thousands of current and former city employees entitled to pensions and medical benefits. detroit's emergency manager kevyn orr has told public unions to brace for significant cuts. on sunday, fox news he said he is talking about a significant sum of money. >> we will have a dialogue about the pension funds of what we can do. there are police and fire and general services. they may have different levels of funding. what we're talking about is the unfunded component of of those pension funds. i want to be clear, it is a significant sum of money and there are going to be concessions. in sessions may be different for each fund and it will be focused on the unfunded portion, but there will be some -- >> you're saying pensioners who worked for the city for decades are not going to get the benefits they thought they were going to get. >> there are going to be some adjustments. >> detroit's unions have

kevin ore is city's emergency financial manager, appointed by fwn gn republican governor rick snyder. he's tasked with turning around detroit's money problems. he was asked yesterday by "detroit free press" whether the city would file for bankruptcy within the month, and he said, "to be honest with you, this week, this week, is pretty crucial. detroit owes creditors between $16 billion and $18 billion and finds itself in a position that anyone has ever found themselves in the quicksand of too much debt can relate to. the city is fending off demands for higher interest rates. has to decide whether to make the choice to default on some of that debt and all the while is making brutally difficult triage decisions on which spending to cut. it's led detroit mayor david bing to cut city spending by $172 million a year since taking office in 2009. the less the city spends on basic services, the less people want to live in detroit. the city's population has dropped by 5% since 2000. around 30% of detroit is vacant.

for more, let's turn to the mayor of lansing michigan who ran against rick snyder and lost in that election. also with us is msnbc analyst dr. eric dyson. gentlemen, great to have you with us tonight. >> thank you. >> great to be here, ed. >> virg, you ran against snyder for governor. did you talk about detroit? >> it came up quite a bit. you about brought a tear to my eye. you are a national treasure and detroit owes you a debt of gratitude for talking sense. yes, the problem of detroit came up. we both agreed over and over again that detroit was michigan's first leading city. failure was not an option. we today make detroit work. detroit is the face of michigan. and we would be job one to wring back jobs to the state and in particular to detroit. i got to tell you, with all due respect to the governor, this is not sour grapes. until this bankruptcy, we haven't seen any action in detroit. there hasn't been a focus on detroit. the governor who said over and over again that everything he did would be seen through the prism of all jobs created for the state, i don't know of one job he brought

we are just moments away from hearing from governor rick snyder. he is going to give us the latest on detroit. the country's fourth largest city filing for bankruptcy. this has been absolutely devastating. this is a city that personifies urban blight. when you look at the statistics they are impressing and astonishing. let me give you a sense what is happening in detroit. this is a city whose population has been in decline. about the same now as it was in 1910, about 17,000 people. unemployment over 16%. 78,000 homes are abandoned. the governor says the city can't meet its obligation and cites a list of disturbing staes ining . the average time for police to respond to what is considered a high priority emergency, 58 minutes. more than 50% of parks have closed since 2008. 40% of the street lights in the city of detroit don't even work. i want to bring in our panel, jared burnstein is msnbc contributor and thomas sa grew is a native and author of this book. gentleman, good morning. it's good to see both of you. thomas, i want to give people a sense

we'll talk to house speaker john boehner and michigan governor rick snyder. with government gridlock worse than ever, the house speaker told us he'll redouble effort to repeal the president's health care plan, but as if to underline just how far apart the two sides are on everything, said this when i asked-- what do you think the president's agenda is for the second term? >> i have no idea. >> in detroit, the worst that had been feared happened. the city that had once within the pride of american industrial power went bankrupt. $18 billion in debt. we'll talk to michigan governor rick snyder about the fallout for municipal pensioners, bond holders, and businesses. and the calls for a national conversation on race. >> trayvon martin could have been me. >> we'll talk about that and the other news with our panel, susan page of "usa today." pbs correspondent gwen ifill. the "wall street journal's" gerald seib. "time" magazine's michael scherer. david ignatius of the "washington post." and our own john dickerson. this is fooks. captioning sponsored by cbs from cbs

. >>> joining me now from lansing is michigan governor rick snyder. governor, thank you for being here. >> happy to be with you. >> governor, detroit we know, as a city spent $1 million more than it took in, borrowing the rest. "the wall street journal" called this a long, sad decline. you had to make the final decision on this bankruptcy. were there any other options? >> no. there were no other viable options. i view this as an opportunity to say, let's stop the decline. this is a situation that's been a period of decline of 60 years in detroit. and it's resulted in $18 billion in debt that the city can't afford to pay and more importantly it's resulted in services that are not good nor appropriate for the wonderful people of detroit. to give you one illustration, response times for the police in the city of detroit are 11 minutes. t one way to do that is to go through this difficult process but to use bankruptcy to say, let's do a plan for creditors but also a plan to invest more in services to citizens and grow detroit and let's get on a positive p

governor rick snyder spoke a day after detroit filed for chapter 9 bankruptcy protection. he said the city has a chance to stop its years of decline. >> detroit has a tremendous number of positive things going on, very exciting things. i deeply respect the citizens of detroit. they deserve a better answer, and they hired me to get a better answer. so let's work together on making that happen. >> city leaders are trying to restructure their finances under federal court protection. they hope to cut their debts to financial institutions and their spending on the pensions and medical care of retired city workers. some locals say they're worried their city's financial reconstruction will mean cuts to municipal jobs and services. some creditors say they're worried the city won't repay its debts. >>> people are reacting to the news that their city has gone bankrupt. our correspondent has the details. >> reporter: overnight it was pitch dark in detroit simply because the city does not have the money to pay for its electricity bills. detroit was once a thriving metropolis. you can

so he brought the decision to governor rick snyder. we're told on tuesday, and the governor thought about it for two days or so before finally giving his blessing and having it moving ahead yesterday. there had been rumors all week. what happened yesterday was actually quite interesting. these pension boards had actually tried to block any type of bankruptcy filing. you know, tried to file something in the county court in lansing and tried to block the governor from doing this, but right before hearing was set to start on that motion around 4:00, the city filed for chapter 9 bankruptcy. unprecedented. the largest municipal firing in u.s. history. the question is what happens next. what happens to city services? many are distressed about what could happen over the next year or so. the emergency manager seems to think that best case scenario detroit could come out of bankruptcy by late next year but that remains to be seen. some experts say it could take several months, some say it could take several years. that's part of the questions t

we'll talk to house speaker john boehner and michigan governor rick snyder.ith government gridlock worse than ever, the house speaker told us he'll redouble effort to repeal the president's health care plan, but as if to underline just how far apart the two sides are on everything, said this when i asked-- what do you think the president's agenda is for the second term? >> i have no idea. >> in detroit, the worst that had been feared happened. the city that had once within the pride of american industrial power went bankrupt. $18 billion in debt. we'll talk to michigan governor rick snyder about the fallout for municipal pensioners, bond

but i want to begin with michigan governor rick snyder.f bankruptcy by detroit is such a big story. i was immediately drawn to something you said back in june to 11. i'll put it up on the screen. the headline, "bankruptcy not an option for cities." governor snyder said that he won't let detroit or any other michigan cities declare bankruptcy. detroit's not going into bankruptcy. snyder told reporters, we're going to work hard to make sure that we don't need an emergency manager and bankruptcy shouldn't be on the table. so what happened? >> well, we worked hard on the process. again, that's something to be avoided. and it's not something i'm happy to be in this situation. this was a very tough decision. but it's the right decision. because ultimately the issue we need to do is to get better services for the 700,000 people of detroit. the citizens of detroit deserve better than they're getting today, in addition to dealing with this crushing debt question. we went through all the other processes we could. there were no other viable options.

michigan rick snyder and detroit emergency manager kevin orr joining now.ng. >> governor, first to you, look, there's questions here about the extent to which michigan could have done more to help the city of detroit. what's your response to that? >> well, it's not about bailing out the city of detroit. they have $18 billion in liabilities. this is really about how to get better services to the citizens of detroit. i deeply respect them, i work for them. they deserve a better answer, and part of this is to say let's address better services and let's address the debt question in a structured fashion. there was no other viable option so let's use bankruptcy effectively to stabilize the city government of detroit and let's grow detroit and i believe we have that opportunity here. >> governor, are you comfortable then with other cities that might look at their pension obligations, for example, as being unmanageable and saying, you know what? we're just going to have to file for bankruptcy. >> well, again, this was through an extensive process. this wasn't just

. >> michigan governor rick snyder to put detroit through bankruptcy. >> signs of decay and neglect arefederal ballot off the table. >> i think they will have to work with creditors on this. >>> we begin with a major rights? voting this week. republicans protested democrats rejoice. but to see the big picture, it goes beyond today's politics. you have to look at an intense battle over civil rights in courts. a battle playing off stage and off camera the last several years. long before john roberts was in charge of the supreme court he was working in the trenches of the conservative legal movement in in the early '80s, he advocated against the act and voted to protect against discrimination was quote the most intrusive interference imaginable by federal courts and to state and local processes. now think about that. that put roberts to the right of the reagan ref flues. after all, president reagan signed off on that interference in 1992. years later roberts took his agenda on to the court where he strongly, incrementally but knocked down key civil rights pro techs. in 2007 fn he limited h

my hats off too rick snyder. he got michigan to be a right to work state. >> can they -- with this new bankruptcy, thrill be renegotiations of these union contracts. >> of course. >> will the uaw be exempt from it? >> can't be. >> i hear -- i know they can't be. they weren't supposed to be exempt from the auto bailout either and they were learned billioned of dollars. >> that was on a different. the that's when the had the political payoffs from the obama administration to the unions. this is rick snyder, the gov of -- governor of michigan, a republican, they control the house and senate in michigan. and they tried to force union in the constitution. they lost on that. that was in the last election of 2012. and now they're a right to work state and now we have -- they wouldn't come to agreement on detroit and now they're in bankruptcy and everything is on the table and it will be a beautiful solution, frankly. we're going to get detroit back if it's possible. >> very good. so we only have half a minute. so basica

michigan governor rick snyder held a press conference earlier today and said has lousy as bankruptcyoit that chaos won't ensue. >> one of the first things i was concerned about is people are going to think the police aren't going to come anywhere or something is going to stop. but noirmal operations will

two days later, michigan governor rick snyder declared an emergency and appointed orr. the financial manager insisted yesterday that the city bent over backward to work with creditors, but could not reach agreement. still, the bankruptcy filing left residents frustrated. >> big old detroit can't even handle they own business? that's sad. >> they've had enough time to straighten it out, so i guess as they say if you can't handle it yourself, someone else will. >> suarez: major creditors, pension boards and labor unions also grumbled. in washington, steve kreisberg of the american federation of state, county and municipal employees put it this way. >> the loss of pension could be extremely devastating for a number of city workers in detroit. it's simply a matter of what they've been counting on, it's their nesteggs. it's really their life savings. >> suarez: now, as the city waits, a protracted process begins in federal bankruptcy court. there is no immediate estimate on how long it will last. nest and we're joined by emergency manager orr and governor snyder. governor yo

according to michigan governor rick snyder, credit tores creditors fear the city may never pay them back they say the city has no other option. >> i want to emphasize jo view this as a terrible answer in the sense that now is our opportunity to stop 60 years of decline. this is fundamental. has anyone liked the detroit of five years ago, 10 years ago, 15 years ago? how long has this gone on and people had not stopped to say stop kicking the can counsel -- down the road and do something. >> harris: one time they were the fourth largest city in the nation. might with 2 million people. long slow to decline in population. auto manufacturing and years of corruption left it nearly $20 billion in debt. now, crime is rampant. houses, homes, thousands of them sitting vacant. nearly half of the city streetlights don't work. experts say many creditors, pensioners and unions stand to lose a significant amount of money with this bankruptcy though. and with the white house saying it's closely monitoring the situation, some people are wondering if the government might step in with a bailout mike tone b

. >>> coming up next, we have michigan governor rick snyder and detroit's emergency manager both.ll be right back. i have low testosterone. there, i said it. see, i knew testosterone could affect sex drive, but not energy or even my mood. that's when i talked with my doctor. he gave me some blood tests... showed it was low t. that's it. it was a number. [ male announcer ] today, men with low t have androgel 1.62% testosterone gel. the #1 prescribed topical testosterone replacement therapy increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer or who have or might have prostate cancer, and women who are or may become pregnant or are breast-feeding, should not use androgel. serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm

city of detroit now looks like the aftermath of a long- fought war, which is why michigan governor rick snyder and state appointed emergency manager said filing for bankruptcy was the only tool to deal with the crippling debt. >> i do not view that as a terrible answer in the sense that now is our opportunity to stop 60 years of decline. this is fundamental. how long has this gone on and ,eople have not stopped to say "stop kicking the can down the road and do something?" >> some lifelong residents expressed cautious optimism. >> i guess you could call it a rebirth, sure. i'm obviously frustrated because it's like another thing to explain. i'm always on the defense. are relyingoiters on their pride and resiliency to move forward. >> i think that detroit is really forward-looking and having public and private groups work together, so i think there is a lot of hope for detroit. >> moving forward, it also continues on the validity of the bankruptcy filing itself. the legality is already being challenged in court. >> the indian government has ordered a review of the scheme that provides free schoo

rick snyder who appointed orr said it was painful but said there was no other option. detroit is the largest american city ever to file for bankruptcy, by far the largest. the long-term debt as high as $20 million -- >> so what do the creditors stand to lose on this? often there is a restruck dooring, they get paid off at pennies on the dollar. do we have any idea? >> we don't. a federal judge first has to approve this. this is a request to go into the chapter nine bankruptcy which is the municipal plan -- >> right. >> so the judge has to go throw a three-month process of approving it and a reorganization plan they have to work out with creditors including pensioners. >> this is so shocking something like that is happening in the united states, and, you know, we've heard about state finances in trouble, city's finances in trouble. is detroit a one-time unique situation, or will we hear this about a lot of major city sns. >> there has been a lot of talk about that. detroit for 40 years has been a place of extreme. extreme racial strife, white flight, decline of the m ma

emergency manager of the city of detroit who made this decision along with the republican governor, rick snyder michigan, said, look, people are going to have to take cuts in the near term, but in the long term, what you're going to have is a city that gets back on its feet. you've got 78,000 abandoned homes here, 40% of the street d lights don't work, the average response time for policemen is 45 minutes. it's unacceptable, but once we pay all that back, we'll have more money to put into city services. that's the up side, but there is pain to get there, christine. >> what it means for city pensioners and retirees and active duty city workers as well. you're talking about firefighters who breathe smoke for 20 years, who put their own money into their pension plan and now they're going to have to get a haircut, right? everyone is going to have to take a haircut. >> yeah. i mean, look, we don't know the numbers yet. that will be fought out with lawyers in court for months, maybe years. i just interviewed kevin worthy, the emergency manager here, and i said, is there any way you get out of this wi

rick snyder is scheduled to hold a news conference in about 2.5 hours about a plan to restructure the city's debt. it is the biggest u.s. city to ever file for bankruptcy. >>> several california cities have also filed for bankruptcy in recent years. vallejo declared bankruptcy in 2008 and emerged from protection three years later. stockton declared bankruptcy last year. at the same time it was the largest u.s. city to declare bankruptcy. and orange county declared bankruptcy in 1994 while facing a debt of $1.7 billion. >>> time is 4:45. the conformation of janet napolitano as the next president of california was met with protest. uc campus police arrested six protestors and removed them from the room. as you can see there. the protestors say the record number of deportations during napolitano's time as homeland security secretary makes her a bad choice. in her remarks she tried to address their concerns. >> documented or undocumented, we welcome all students to the university of california. we are here we're in the business of education. >> napolitano becomes the first female presiden

you need to know this rick snyder and his little dictator kevin or are now free to go ahead with their disaster capitalism plan for detroit yesterday a federal judge stopped all bankruptcy related lawsuits against the city decision which in effect blocked the attempts of labor unions and activists to stall the republican plan to rip off that city's workers and retirees if snyder and or succeed in detroit goes through with the proposed bankruptcy public employees will lose much or most of their retirement checks as the city pays off rich investors first is today after the city submitted its chapter nine filings last week a state judge in michigan ruled against the bankruptcy plan saying that it violated michigan's constitutional requirement that cities pay workers the pensions they'd invested in throughout their entire working lives with yesterday's decision by federal judge steven rhodes to free. all anti bankruptcy lawsuits the possibility of republican governor snyder stealing those pensioners money is a lot more certain of course while detroit detroit's workers will now have to worr

michigan governor rick snyder who said in 2011 he'd not let the city fall into bankruptcy now says there is no other choice. >> do you think there is a federal bailout in detroit's future? >> no. and i don't expect one. i've said before, the state cannot bail out the city of detroit. and part of the context i would say that to you, it's not just about putting more money in a situation. it's about better services to citizens. again, it's about accountable government. >> detroit wants to spread the losses to both investors and those with pensions. an estimated 20,000 retirees who rely on the monthly income. that makes up $3.5 billion of the city's debt burden. since the city declared bankruptcy, a circuit court rejected the filing labelling it unconstitutional. that's likely to delay what many consider the inevitable. creditors are looking at the city's vaunted art collection as possible assets to liquidate. the detroit institute of arts is run by the city and has pieces from new and old masters alike including remigrant and van gogh. experts ballpark the holdings at about $2 billion. >>>

gerri: here is what rick snyder said. >> hat'll come through the process, the point is anybody buying bonds should be aware of the financl challenges. we want to work through this, get that done. gerri: having big effects, what do you make of the governor's statement, what he had to y about this. what he isaying is quite daerous. he has characterized the general obligation bondss being unsecured creditors of the city, and i alwayselieved and i think th market believes the past 100 yes they are obscured by the municipali. very dangerous precedent he is trying to set here. cheryl: emergency city manager is proposing bondholders get cents on the dollar. >> the same thg in the stockton case eaier th year where they basicallyided with the city and calpers, the large pension fund for state workers in the state of cifornia. of course the bondholders get a haircut and the problem is you have to find some sort of equity or penalty here. if they got the bondholders, who is going to invest in cities and municipalities if they know they will get it? gerr detroit has been a mess. the city in big t

governor rick snyder and city manager kevin orr are appealing while public sector retirees anxiously what will happen to their pensions. >> everybody's living in fear right now of what's going to happen. >> i don't know what my future will be right now, but just get ready for the new detroit. >>> a tragic accident has left one woman dead at a dallas area amusement park. witnesses say they saw the woman fall from the texas giant roller coaster friday night. park officials are now trying to determine what caused the accident and if the woman was properly restrained. >>> police are investigating claims that four elderly men found malnourished were being held captive inside a home in northwest houston. the men were homeless, and police say it looked like they were being held so the captor could cash their government support checks. >>> and we're getting pictures of a bomb going off at beijing international airport. witnesses say a man in a wheelchair set off a homemade bomb, but nobody else here. chinese state tv says order was quickly restored to the main terminal, and no flights were a

restore detroit's financial stability and the move came with full support of michigan governor rick snyder who defended the decision by citing the shocking statistics that have come to define the economically downtrodden city unemployment has nearly tripled since two thousand and is now more than double the national average public services are also severely under resourced to traders wait on average an hour for the police respond to a nine eleven call and forty percent of the city's street lights a bit out of commission since earlier this year but despite this looming reality filing for bankruptcy isn't a move welcomed by all the doing so put the pensions of thirty thousand detroit city workers in jeopardy and it's because of this that a michigan judge has put the filing on a hold asserting that bankruptcy would violate the state's rules against tampering with retiree benefits so here to give us some insight on how detroit came to be one of those the longer the economic economies are in the country and what can be done moving forward i'm joined now by richard wolfe professor emeritus of ec

governor rick snyder says the financial mess was 60 years in the making, and there was no other option. but to file for chapter 9 bankruptcy protection. detroit is $18 billion in debt thanks to a huge population decline and troubles in the auto industry. the city will now have to sell off assets and scale back services, but the city emergency manager says bankruptcy is the first step toward restoring detroit. it will take up to 90 days now for the bankruptcy filing to be approved. >>> and as you know, marla, when one of the nation's biggest cities files for bankruptcy, it definitely affects the markets. seema is live at the cnbc world headquarters with a look at how futures are trading. good morning, seema. >> reporter: laura, good morning. let's start with the markets, because the futures now are lower as stocks could feel the heat today from google and microsoft. both of which reported disappointing earnings last night. microsoft continues to be hurt by slumping pc sales and took a loss from unsold inventory of its surface tablet. google's results were impacted by lower prices for we

>> michigan governor rick snyder calling for patience one day after detroit became the biggest city to declare bankruptcy. late today a michigan judge ruled the chapter 9 filing violates the state constitution which protects pension funds. state attorney general filed an appeal. two unsecured city pension funds stand to be biggest losers. detroit is $18 billion in debt much is owd to pension autos some disturbing video surfaced showing a new mexico woman being thrown to the ground by sheriff deputies what they didn't realize is that she was in the mid yefl a diabetic attack. she suffer that had attack while driving in santa fe. she crashed into the back of a truck and couldn't open her car door. deputies thought she was drunk yanking her to the pairment face down. they hand covered her she was limp. >> in this case there was no resistance. we're looking at that very seriously. >> what concern meez is there is no need to lay someone on the ground that amount of time. there are other deputies could have assisted in sitting her up i'm surprised i didn't go into a coma in the back of that

restore detroit's financial stability and the move came with full support of michigan governor rick snyder who defended the decision by citing the shocking statistics that have come to define the economically downtrodden city unemployment has nearly tripled since two thousand and is now more than double the national average public services are also severely under resourced the traders wait on average an hour for the police respond to a nine eleven call and forty percent of the city's street lights a bit out of commission since earlier this year but despite this looming reality filing for bankruptcy isn't a move welcomed by all doing so will put the pensions of thirty thousand detroit city workers in jeopardy and it's because of this that a michigan judge has put the filing on a hold asserting that bankruptcy would violate the state's rules against tampering with retiree benefits so here to give some insight on how detroit came to be one of those the longer the economic economies are in the country and what can be done moving forward i'm joined now by richard wolfe professor emeritus of eco

eastern, "face the nation" with rob she snyder andng rick bob schaffer.hey're brought to as a public service by the networks and c- span. you can listen to them all on c- span radio on 90.1 fm in the washington, d.c. area. free app orload our listen online. >> it dawned on me he had been not only at abraham liggins bedside immediately after his assassination, but also at the bedside of william mckinley in 1901. i thought, who could this fellow be? of course when i opened the archives, i realized just what a rich subject it was. has two bookends that either and. lincoln on one income abraham --coln's personal secretary lincoln on the one hand and come abraham lincoln's personal secretary. on the other end of his life, he served not only under mckinley but after the assassination, he was secretary of state for teddy roosevelt. yet these wonderful iconic bookends of american history. when you look deeper, you realize all of the chapters in between an american history from the civil war through to the beginning of the 20th century, he is a presence in every o

martha: michigan governor rick snyder and emergency manager kevyn orr spoke moments ago. what is going on in detroit with regard to this bankruptcy. here's what they had to say. listen to this. >> be happy to listen to any other plans someone can come up with given the restraints we're working under. the reality with $12 billion in unsecured debt, there is precious little we can do. allison? >> you present ad plan in terms of -- [inaudible] achieve those goals and will it maybe make it easier to -- >> bankruptcy, as i said, time and a again, bankruptcy is a tool in our tool box to get at the goals we want to achieve and the proposal that we made on june 14th. i think one in direct response, allison to, your question, one, it gives us breathing room. as you know we were being sued almost on a weekly basis. that is the very thing i had asked, pleaded for not to happen. to have a resolution, for whatever reason that is what people didn't want to do. fair enough. they're entitled to act in their own interests. number two, it brings in as the governor said, to bring in all par