Detroit; a Case Study (I)

 

 

  

Detroit; a Case Study (I)

By

Sampson I Onwuka

 

Rudyard Kipling “We were dreamers, dreaming greatly, in the man stifled town, We yearned before the sky-line where the strange roads go down, came the Whisper, came the vision, came the power with the Need, Till the soul that is not man’s soul was lent to lead” Charles Dickens ‘Sketches by Boz’ “You are to be in all things regulated and governed by fact. We hope to have before long, a board of fact, composed of commissioners of fact, who will force the people to be a people of fact and of nothing but fact”

Maryam Wright Edelman writing back on public newspaper ‘The Carolinian’ in article she titled ‘Child Watch’ reintroduced some of the basic themes of Martin Luther’s ‘Movement of the Poor People’ in which circumstance she cited that “At Dr. King’s death in 1968 when he was calling for a poor people’s campaign, there were 25.4 million poor Americans, including 11 million poor children, and our Gross Domestic product was $4.13 trillion. Today, there are 46.2 million poor people, including $16.1 million

poor children, almost half living in extreme poverty, and our GDP is three times larger, and

shamefully younger children are poorer they are.” Citing Martin Luther’s speech from 1967 “Where

we go from here; Chaos or Community’, that for instance Dr. King mentioned that “The discount

education given Negroes will in the future have to be purchased at full price if quality education is

to realized. Jobs are harder and costlier to create than voting rolls. The eradication of slums, housing

millions is far beyond integrating lunch counters.”

That many great Americans are “uneasy” about injustice but are not willing to do anything to  

eradicate it. That “A nation that continues year after year spoil to spend more money on military

defense than on programs of social uplift”, that “America, the richest and most powerful nation in

the world can well

lead the way in this revolution of values.”

Of course actions and non-actions do effect time in one place or a put, and infinity may not be fully

grasped because of the lack of knowable actions and non-actions are affected by the arbitrary. Some

unknown economist may have mentioned that it was information that determines the notions of

individual actions, in a later years, it was added the meaning that with risk as Hayek argued, that

individual propensity to action or the functions affecting individual decision making is relatively

associated with levels of information.

 

These information levels are any one point is considered is a ‘flow’ in the market dynamic reflecting the

consumptive behaviors of the general public or an individual prospective buyer, or the knowledge when

factored into the process of daily accounting is generally a ‘stock.’ Put from time perspective and

delivered in market daily, that stock is the measure of a flow in record time, which is usually half-light or

life from the first indications or indexes, that the calculation to remain efficient with bearings to risks,

must shed or discount in value to avoid the problems of expansion which the Vega of a flow may have

resulted. A stock cannot sell at its regular and market price. It is either selling below ‘frozen universe’ or

above ‘expanding universe’ to the measurable error that profits from previous demand and supply or

from yesterday following a long and short runs is done market and has no meaning for the next or best

market estimate in the proceeding day.

 

Many errors in markets begins with the hangover over price and stock performance, which like Buffet

argued at some point is indicative for a period of time and like cycles tend to recur but from all intent of

reasoning, these metrics or matrixes (prices) are propelled from dude, sitting dude, has relevance for a

cycle ‘in’ and ‘out’ depends mainly on fixed Government activity. But to the extent of a stock and flow

market, there are cycles imbedded in the pricing which is independent of the overall market, this pricing

is not a momentum rather driven by aggregate and fixed activity influencing momentum allover over the

market, which is not carried by one stock rather, and it is carried by what happens in the overall market

or one major industry. In essence the reason why it seems that Buffet’s instances of past records as a

guide for future investment is accurate is that a particular stock of index is replaced by the activities of

the whole market. What carried a particular market or any given stock over specific cycles are either

returns on fixed or segmented investment or a performance driven by the overall market than one, else,

the total excitation of a particular stock towards efficient market system, is governed by the activity

surrounding one stock in respect to the whole market.

 

In one direction an expansion only offers wafts of possibility but not for gains without risk and certainly

price has no history. In amplitude, the two forces that a relevant in transmitting some of the

assumptions associated with a stock, more like a particle when there is both symmetrical expansion in

one direction or asymmetrical expansion in completely opposite direction, both of which do not occur at

the same time, saving for the total amount of energy that can affect a particle in spite of external or

internal pressure. The externalities are shocks in a system or shocks to what is called a dynamic; system

dynamic. These shocks are relevant to the system as asymmetrical given the range of propulsion from

initial placing of the object or stock from first metric or less than 1% per measure, of what the

Hamiltonian atomic mathematicians regard as a position of particle following a coordinated intervals,

where 1% of any interval is not equal to one metric or internal. In log work, the dynamic or stable

explosion is said to contain all the possible points that a particle can achieve in normal adjusted graph,

adding that for instance, a propulsion from an a cut off barrier such as an exit point from previous

market or stock of index, or in the finances, a propulsion from an irreversible continuum such as a

convex, especially the first intervals from zero – without history, gives us an idea of the full expansion or

direction of the object with added intervals.

The difference between Sympletic and Hamiltonian mathematics of Continuum is that excitation of a

particle in an atomic experiment with all the possible alteration and external pressure gives…..

 

In more than one form or another, there is the argument that the finite number is mostly known as the

better illustration of expansionary position (+) of world, where it is presumed that the forced of especial

mass or with 'sufficient reason' can impact the dimension or space of an event horizontal therefore

negative. The mathematical limit and logarithm of this horizon is a movement from negative to positive

when there are possibilities of profit and from positive to negative, where one is arbitrary and there are

problems of exiting given the possibilities of losses and the issue of debt which is not investment in

future market or money not already had. Since movements are involved in both the negative and

positive movements, there are chances of profits in both ways, and there are movements still effective

and for all intent of purpose, a metric or matrixes are not meeting requirement, efficient market

hypothesis not in this case applicable. As far as the equation is considered necessary to satisfy

'continuum hypothesis' of an ever expanding world, whose space Einstein once argued are related to

time.

"The interest rate-of-return rule, in the form here considered, would adopt any project, whose interval

rate is greater than the market rate of interest." Jack Hirshleifer

 

"The Internal rate for a project in the general case is defined as that discounting rate P which reduces

the stream of net returns associated with the project to a present value of Zero (Or, equivalently, which

makes the discounted value of the associates cost stream equal to the discounted value of the receipt its

stream)...." Graphs for "Three solution zones for differing borrowing and lending rates suggest embraces

and departures...." “The crucial question as always, for these rules is what rate if discount to use.

intuition tells us that the rate representing 'marginal' borrowing cost should be used as the discount rate

for zone I solutions, since production investment will then be carried just to the point justified by the

cost of the associated increment of borrowing. That is, the slope same as the slope of the productive

opportunity curve at the corresponding point (R) connected by market curve"

 

Discount rate to be used in advance is independent of the utility time preference...function. It leads to

the adverse case of discontinuity and infinite (2) Problems of present-value or internal-rate-of-return

rules, should be based on lending or lending rates, it should correlate a bias of tangent as the base of

series of borrowing points, it can only travel so far, that the marginal lending rate at the present would

only probably infinitely multiply if based Internal-rate of return, fails when there are multiple tangencies

or single (invariant) productive possibility where are Jack Hirshleifer argues that "Both rules work only in

a formal situation when the solution involves direct tangent between a productive opportunity locus

and a utility isoquant, since the discount rate necessary for us of both rules is the marginal opportunity

rate - a product of the analysis." ....that is if we put in the incident of non-independent investment

opportunities such as Insurance...

 

Multitasking-equal to distribution of rate, (Division of Labor) - within parts of 'interest rate' - activity

construct. DNA of economics increasing marginal cost to borrowing is an experimental value and it

involves 'capital rationing' 'fixed capital budgets', that is each additional borrowing incurs reset...which

increases the bump speed of default, for instance the Detroit case.

 

 

Taken from first through third degrees of Debt, we may consider that (1) income capacities of any nation

or household is not the same as actual earnings any given duration. (2) That the expected returns of

investment is no guarantee that objectives are met at any given time and for that (3) investments are

equal to debt or earnings not already had. (4) Total expenditures and savings should not give us an idea

of total income but should demonstrate a rate of return which may in likely serve as the basis of a real

economic comparison. (5) Equilibrium is only possible when all functions of utility is met and demand

equal supply (5b) Disequilibrium should therefore represent a descriptive state which involves the

independent variables of natural disaster and emergent condition, to the degree that Micro Equilibrium

of appropriating the emergencies through a rate of rate can also incur problems of micro-disequilibrium,

especially the information and the size of the incident is not exactly known. In the end, (6)

microdisequilibrium is perhaps a false bias on the probabilities associated with accommodating disasters

or other problem of disequilibrium such as income (equilibrium) without adequate insurance (health

plan), which is constituted as savings which however outside the expectations of a normal market. (7)

 Microdisequilibrium is equal to Insurance provisions or at least inversely related to individual income

and interest, that (8) Macro-disequilibrium is based on the overall

 

*----* June 30th, 2015 ---- Definitive thesis on a case for Detroit……

The exercise of the process as we see clearly and from all stand point is that partial inclination to

pressure, increases the rate at which a recovery can be established in normal circumstances of any

society and group of friends, or in terms of company and military organization derived from any else.

We have to show that when a structure is hewn in any society and for any number of reasons, it stands

on its own for any number reasons and for any length of time and it descend and decay due prevailing

economic conditions, it factors out differently, it meets the cycle half way and always as in the end, it

struggles from poor economic condition and health like Detroit. It is also a way of coming to grasp with

some of the assumptions in a recovery process for big American Cities such as Baltimore, Chicago and

New York, some of them with the process of the facility including the indigent issues of Poverty from

American past.

Poor House, the Work houses, which FDR ended and the shift from do it yourself self-repairing economy

to moratorium by Government, stability pact with a Central Bank, and rise of Welfare nation. The

transitional of the Poor Houses to Work Houses and under FDR was abolished or at least transferred into

workers dormitory or retained with full payment both indentured whites and correction facilities that

from the end of civil war kept minorities in jail houses - usually without pay. The rise of the Welfare as

anti-segregation public policy concerned with Wealth distribution, carried many of the ruled associated

with equal taxation but left the minority Blacks and others who were to benefit from employment due

to structural changes in America in the hands of others.

 

The price of Citizenship by Michael B. Katz; 2001 “Although Social Security Medicare, food stamps and

the Earned Income Tax credit are national programs that differ widely in eligibility rules and benefits”

Medicaid is federal state engagement that allows with advent of 50’s American Society….  there was an

increase penetration. “Although by the 1950’s a close observer could have found signs of trouble in

older industrial cities, it was in the 1960’s, 1970s, and 1980’s that cities began to hemorrhage

manufacturing Jobs. In a national sample, 30 percent of manufacturing plants that had more than one

hundred employees in 1969 had closed by 1976.”

 

The oldest cities were according to him were the hardest hit, “Between 1954 and 1977 Detroit lost

about half of its manufacturing Jobs, between 1947 and 1982 the number of manufacturing jobs in

Chicago plummeted from 668, 000 to 277,000.” Among the supposed hardest hits: Camden, New Jersey;

Flint, Michigan; or East St. Louis, Illinois….Separating ‘productivity from wages’…also. He argued that the

economic expansion of 1993 reduced poverty to 12.7 percent in 1998, the rate was still higher that it

had been at the end of the last economic expansion in 1969.”

FERA (1933) and Civil Works Administration (1934), George Romney…..John Engler, Expenses from the

criminal justice system has ‘swallowed’ 608 million in the 80’s….Crimes in Detroit ranked sixth in the 90’s

but Detroit jailed more Blacks than anybody….He mentioned that under Engler that Michigan shed 22%

of the Welfare service and…..and part of the programs that were removed was the $160 a month as

compensations for people struggling with all kinds of situation and for Welfare.

 

The opposition of these Acts by blacks who mentioned that they did not benefit from the New Deal, that

it was a raw deal given the fact that the Democrats who were mainly Whites before the New Deal and

Southern, simply levitated the segregation laws already evident in the South into the New Deal, that the

many of the standards which they set, "prices" "wages" and some of the outcomes of the Standards as

later discovered such as the blunders of HOLC in mapping the neighborhoods in the United States

according the four levels of decays, were in fact opportunity which began in real light but cast a

perpetual light on segregation. () Some of them argued that the burden of proof was on truly and due to

the Government but the rights to prosperity was based on a system of administration that left many of

those who were still angry from their defeat during the Civil war in the corridors to essentially judge

them.

 

New York also faced the problems of Irish people who were not very tolerant of other Irish JJC, so also

the English, and the spark of little Irish communities did not give in to others, and when the others left,

they found comfort among themselves and in their communities. The same was the case with Italians.

First they labeled criminals and next they had problems netting a living wage and then there was a larger

problem of neighborhoods which were not exactly there. Little Italy was a small comfort of a people that

threw their lot together with Verrazano and like the rest that drum their past along the settlers such as

Pulaski, a sharp divide between these people and the rest of the New Yorkers gradually emerged. The

sport that the light the night was death of the Irish versus the Italian, death of the Dutch versus the

Jews, death of the Jew or whatever name they go by that was called Blacks and Muslims. It reality, the

Cops in the City of New York has no choice but to take parts. The Irish suffered the most until they

gradually built massive collocation of Migrants no less than Mexicans of today and began to decidedly

take over. In essence, some of the names and parks and places that we hear today is derived from long

chain of ‘gangs’ that supplied the City with everything it could imagine, that nearly half of U.S gangsters

were from New York was not due to the lionized position of the stars but of what happened from its

beginning, that like the country inherited all kinds of sickness and bias, it was a matter of the aging that

could prove the deadened a silence.

 

This is not the problem, there was an unaffected group of Americans who lived in what Harlem many of

whom slept through the Civil Wars, many of whom originally arrived with others and headed upstate,

many of whom did not understand what slavery looked like and what it was about. These people

eventually had their own problems of segregation, for a start there is a place downtown in New York

that was once lived by others. These days, there is a disappearing of what you might call the Little Italy

what we now find around this area is flowering of a new culture of new China. It was Irish that had the

five points at some point, at some point it was the Italians and at some point it was the Jews and then

others as with Bolsheviks and Hungarians and Germans of no Jewish or Arabian blood ties. Largely to be

remembered imperturbability of the shared past in what is not Europe, where Jews were reduced to

ghettos…..

 

Robert Shilling is from Detroit and is popular for his book on why people are not always worried about

the market and about the possibility of losing the price value of their house or other people’s problems

when their house is sudden worth 20% or 30% more. The book is called ‘irrational exuberance’ and the

familiarity of Shilling with the U.S housing mentioned that Real Estate in US in ‘2000’ was behaving like

the stock market in 1999. The importance of this exertion may not have been recognized by the Public,

but the Main Street is usually different from Wall Street for many reasons, including the often cited

dissociation of the rental prices from VAR. There is nowhere measure of VAR that incorporates the

housing index, for the simple reasons that U.S housing Index is the very fulcrum of all Real Estate and it

is built for the future and a guarantee of wealth expected to grow but like the U.S Bond market it can be

sold and repurchased if possible according to the growing demands of the market.

 

But emphasis on Detroit market and the rate at which Shilling skewed over the housing problems in

Detroit measures a kind of attitude that was growing over Michigan. Was Michigan or Detroit a

separation of people only and mainly, or was a gradual expected decline of an overnight Industry City

that nearing its end thereby forcing Whites and better informed others to make a faithful exit before the

long dry season. Perhaps the measure of subsistence of a town of educated elite and daring pedigree

would have seen that the broad reach of the town was not to be limited to a geography that was

contested, though the bitter outcomes of the racial profile and divide added the bitter leaves to the

process, it is still an unanswered question, whether the departures from Detroit or what they call the

White Flight was do the level of stress from living with others, or that the potential for growth was

peaked following and his presage a long decline.

 

Of course this question will meet an ultimate answer, for sure when a journalist writes that older Cities

were hardest hit during the recent recessions, we want to be sure about what he meant by Old Cities. In

contemporary American history, three types have since.....being identified. These one, Cities that existed

and achieved the industrialization before the 1930's, and were destined to attract more a share of the

national Banking and financial Institutions, and these includes New York, Chicago,...and the second types

of American Cities were those that emerged from the Conflict and compromise of American past,

bearing the stamps of the old administrative bloc but attending the heights of Industrialization only

gradually. There are others such as Detroit that resulted from necessities and from the benefits of

leaving close to the river and from the well of investment from the within states. These states usually

had bright sparks at some point but was never a major player until the necessities of war or the

innovations compelled them to Industrial heights.