SALON

Wednesday, Jun 12, 2013 6:35 PM UTC

A modest proposal to save Detroit

Banks – not the city – should be forced to auction their art to pay off debt

By

Topics: The Weeklings, Detroit, Jackson Pollock, Detroit Institute of Art, Rick Snyder, ,

A modest proposal to save DetroitMichigan Gov. Rick Snyder (Credit: AP/Paul Sancya)
This article originally appeared on The Weeklings.

The Weeklings DETROIT IS LIKE a canvas of chaotic art, a Gerhard Richter or Pollock, standing starkly out against the blank white room that surrounds it. You find yourself drawn in, compelled to stop and gaze at it. Whether it’s ruin porn or the saga of Kwame or now our new state-appointed Emergency Financial Manager, it’s hard to look away.

The national press has duly documented this most recent drama, how Governor Snyder appointed Kevyn Orr as the Emergency Financial Manager to studiously go through the city’s books and find a way to stave off bankruptcy. Orr is like some old man in a ramshackle rooming house desperately digging through every drawer to find change for the fare as the sound of the last bus barreling down the street shakes the whole stucture. It isn’t pretty.

Recently, Mr. Orr made the surprising suggestion that the city pay off its debts by selling various treasures from the Detroit Institute of Art. The thought being that an auction of a few pieces by Van Gogh, Matisse, Bruegel and Copleys might be enough to satisfy our hungry creditors. I’m sure he had a good reason for suggesting such a thing (after all, city services can’t really be cut much deeper. As the excellent documentary “Burn” points out, this is a city where the Fire Commissioner vacuums his own office). Still, the logic behind Mr. Orr’s tactic escapes me. Since a variety of legal constraints exclude the possibility of any works being sold, all his proposal did was make a lot of very serious people extremely upset. Perhaps that was his goal, who knows. I sincerely believe he has good intentions. As opposed to many here who view him and his mission with suspicion – many were angry at him before he even began –I wish him every success and I do not envy him his task.

His is an exceedingly difficult job. This week he is going into negotiations with the various institutions that own Detroit’s city bonds, institutions that include various large banks.

If he were to ask me, I would offer one very simple solution: Ask the banks to pay back the banks. Maybe not all of the debt, but they could cover a good chunk of it and without even having to write a check.

I am not talking about a loan; we are poor as church mice with nothing to mortgage really (except for perhaps José Valverde’s contract; seriously, we’ll give that to you cheap). Also, I am not asking for a favor or a kindness or an act of benevolence. And I am not talking about class war; no, nothing fancy like that. But there is a logic to why they should help us out, and it goes like this:

Over the past decade, the banks have evicted many, many people in Detroit from their homes.

These were people who either did or did not deserve to be evicted. Perhaps they did not deserve loans in the first place. I am not interested in going over any of that at this time; mine is a very a different point.

For what is interesting is what happened next:

After these evictions occurred, the banks did not foreclose the homes. They simply let the houses rot.

In other words, as opposed to following the due diligence of a functioning system, wherein these banks would have gone through the legal process of actually foreclosing the home, earning back the home’s title, and then paying the taxes on the property until the property was sold to a new owner, they did nothing. They simply walked away.

So, for starters, they owe taxes on those homes. Not just a few homes; thousands of homes. That’s lot of taxes. When you’re done adding everything that’s owed, it’s probably worth more than a few Chagalls.

Then there’s this: by letting those homes rot, these banks caused the depreciation of all the other homes in all those neighborhoods, block after block, along nearly every avenue, street and boulevard. Each one of these abandoned homes pulls the value of all those other buildings down.

These banks were like the shark in Copley’s famous painting (at the Detroit Institute of Art, of course), attacking the vulnerable drowning figure in the water. The victims were honest and hard working, and their homes were suddenly worth less. What followed was predictable: a shrinking tax base, the city unable to pay its bills, cut services. So now the police don’t show up, the firemen are understaffed, people are less safe, people move away, more homes stand empty, and the banks didn’t know or didn’t care. Having made the money they were going to make, they simply swam on.

Now, I am not a trial lawyer, but I bet the thought of all these neighborhoods – Boston Edison, the Villages or Hubbard Farms – coming together for some sort of class action lawsuit might get a bank lawyer a little twitchy. Who wants to defend yourself against a struggling, working class mother whose backyard was turned into a slum? Who wants to see children on the witness stand whose neighborhoods were gutted while your corporation raked in millions and then invested it in other places, in other assets, like, for instance, art.

If you could see them, you’d realize that the art collections of the world’s banks are truly phenomenal. But unless you are a client or a staff member of the bank, you generally can’t see them. JPMorgan Chase’s collection was started by David Rockefeller in 1959. UBS has 35,000 objects, including a Lichtenstein worth $4.5 million. Deutsche Bank has a slightly larger collection; its 37,000 objects make it the largest corporate art collection in the world. Bank of America believes their collection should be available to the public to see, which is generous of them – sounds sort of like a museum – but, according to Forbes, they also refuse to share information about their collection with the general public, making it not like a museum, really, at all.

So my advice is this, I think the emergency financial manager, or perhaps the state Attorney General, should ask these banks for their art. Not all of it; only enough to cover the damages of their foreclosure walkaways, both the taxes they haven’t paid on those homes and the depreciation they’ve caused on all the surrounding property. The Detroit Institute of Art could host an auction and sell these “donated” works off. We’re not greedy, we don’t want much, we’ll only take what we need to get by. I’m betting we could do a lot of good with a couple hundred works of art. Most of these banks would probably not even notice the art was gone, if they even noticed it was there in the first place. (And, looking at that Lichtenstein outside the conference room above, we’re wondering who actually notices it in the office). The best part is, it’s easy for them. Like I said, they won’t even have to write a check.

I know, it’s a pipe dream. Business is complex. As well-intentioned as he no doubt is, the emergency financial manager is probably not seeking any truly creative solutions. He will be forced to speak in the language of the bond traders, who speak in the language of the bankers, who sit in their offices surrounded by all the works of art their profits have paid for, wondering how it was Detroit got itself into this mess in the first place.

No one has time to think it through. It’s a fraternity of returns and profits and endless appetite. They are not interested in the people in those neighborhoods they have ruined. Like the dead-eyed and hungry beast in the Copley painting, they have eaten through Detroit without any real fear of accountability or justice. And now, as we watch, they are preparing to sink their teeth into it again. They really can’t help themselves. It is simply too delicious.

Toby Barlow

More Toby Barlow.

You Might Also Like

More Related Stories

Featured Slide Shows

7 motorist-friendly camping sites

close X
  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 9

Sponsored Post

  • White River National Forest via Lower Crystal Lake, Colorado
    For those OK with the mainstream, White River Forest welcomes more than 10 million visitors a year, making it the most-visited recreation forest in the nation. But don’t hate it for being beautiful; it’s got substance, too. The forest boasts 8 wilderness areas, 2,500 miles of trail, 1,900 miles of winding service system roads, and 12 ski resorts (should your snow shredders fit the trunk space). If ice isn’t your thing: take the tire-friendly Flat Tops Trail Scenic Byway — 82 miles connecting the towns of Meeker and Yampa, half of which is unpaved for you road rebels.
    fs.usda.gov/whiteriveryou


    Image credit: Getty

  • Chattahoochee-Oconee National Forest via Noontootla Creek, Georgia
    Boasting 10 wildernesses, 430 miles of trail and 1,367 miles of trout-filled stream, this Georgia forest is hailed as a camper’s paradise. Try driving the Ridge and Valley Scenic Byway, which saw Civil War battles fought. If the tall peaks make your engine tremble, opt for the relatively flat Oconee National Forest, which offers smaller hills and an easy trail to the ghost town of Scull Shoals. Scaredy-cats can opt for John’s Mountain Overlook, which leads to twin waterfalls for the sensitive sightseer in you.
    fs.usda.gov/conf


    Image credit: flickr/chattoconeenf

  • Nordhouse Dunes Wilderness Area via Green Road, Michigan
    The only national forest in Lower Michigan, the Huron-Mainstee spans nearly 1 million acres of public land. Outside the requisite lush habitat for fish and wildlife on display, the Nordhouse Dunes Wilderness Area is among the biggest hooks for visitors: offering beach camping with shores pounded by big, cerulean surf. Splash in some rum and you just might think you were in the Caribbean.
    fs.usda.gov/hmnf


    Image credit: umich.edu

  • Canaan Mountain via Backcountry Canaan Loop Road, West Virginia
    A favorite hailed by outdoorsman and author Johnny Molloy as some of the best high-country car camping sites anywhere in the country, you don’t have to go far to get away. Travel 20 miles west of Dolly Sods (among the busiest in the East) to find the Canaan Backcountry (for more quiet and peace). Those willing to leave the car for a bit and foot it would be remiss to neglect day-hiking the White Rim Rocks, Table Rock Overlook, or the rim at Blackwater River Gorge.
    fs.usda.gov/mnf


    Image credit: Getty

  • Mt. Rogers NRA via Hurricane Creek Road, North Carolina
    Most know it as the highest country they’ll see from North Carolina to New Hampshire. What they may not know? Car campers can get the same grand experience for less hassle. Drop the 50-pound backpacks and take the highway to the high country by stopping anywhere on the twisting (hence the name) Hurricane Road for access to a 15-mile loop that boasts the best of the grassy balds. It’s the road less travelled, and the high one, at that.
    fs.usda.gov/gwj


    Image credit: wikipedia.org

  • Long Key State Park via the Overseas Highway, Florida
    Hiking can get old; sometimes you’d rather paddle. For a weekend getaway of the coastal variety and quieter version of the Florida Keys that’s no less luxe, stick your head in the sand (and ocean, if snorkeling’s your thing) at any of Long Key’s 60 sites. Canoes and kayaks are aplenty, as are the hot showers and electric power source amenities. Think of it as the getaway from the typical getaway.
    floridastateparks.org/longkey/default.cfm


    Image credit: floridastateparks.org

  • Grand Canyon National Park via Crazy Jug Point, Arizona
    You didn’t think we’d neglect one of the world’s most famous national parks, did you? Nor would we dare lead you astray with one of the busiest parts of the park. With the Colorado River still within view of this cliff-edge site, Crazy Jug is a carside camper’s refuge from the troops of tourists. Find easy access to the Bill Hall Trail less than a mile from camp, and descend to get a peek at the volcanic Mt. Trumbull. (Fear not: It’s about as active as your typical lazy Sunday in front of the tube, if not more peaceful.)
    fs.usda.gov/kaibab


    Image credit: flickr/Irish Typepad

  • As the go-to (weekend) getaway car for fiscally conscious field trips with friends, the 2013 MINI Convertible is your campground racer of choice, allowing you and up to three of your co-pilots to take in all the beauty of nature high and low. And with a fuel efficiency that won’t leave you in the latter, you won’t have to worry about being left stranded (or awkwardly asking to go halfsies on gas expenses).


    Image credit: miniusa.com

  • Recent Slide Shows

  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 9

Related Videos

Comments

 9 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>

Salon is proud to feature content from The Weeklings, whose superheroic mission is this: a single essay a day, every single day.  Their core company of seven contributors—one for each day of theweek—covers politics, sex, music, art, literature, film, truth, justice and the American way. Save the day with The Weeklings!

follow salon

Most Read

Popular on Reddit

links from salon.com

From Around the Web

Presented by Scribol
listener_new_rect The Listener: "The Joker": Laughing at life's deepest sorrows