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Treasury Secretary Says Federal Bailout Funds Won’t Be Used For Detroit The federal government has made it clear that they have no intention of extending a monetary olive branch to the state of Detroit in the midst of their bankruptcy woes. Despite the fact that the government famously bailed out the “Too Big To Fail” banks and the auto industry during the height of the most recent U.S. recession back in 2010, Treasury Secretary Jack Lew says Detroit is on their own this time. Think Progress On CNN’s State of the Union show on Sunday, Treasury Secretary Jack Lew was firm in saying that there will be no federal bailout for the city of Detroit, which is going through the largest city bankruptcy in America’s history. While claiming that the administration “stand[s] by Detroit,” Lew said, “I think the issues Detroit has in terms of problems with its creditors it’s going to have to work out with its creditors.” He said that it has “serious financial problems” that have “been a long time in the making,” and that the federal government will only offer “the kinds of normal programs the federal government has” such as the Treasury Department making funds available to take down blighted properties. When host Candy Crowley asked why the government offered bailouts for big banks and the auto industry but isn’t offering one here, Lew responded, “I think the situation we had in 2009 and 2010 was unique and something that hopefully we will never see again.” We think this is pretty shady, especially considering the fact that the government all but forced-fed some of the banks bailout money during the financial crisis/recession when they adamantly refused. It will also be interesting to see exactly what these “federal programs already in place” to assist Detroit consist of. What’s your take on this, Bossip fam? Continue reading →