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Sell the Howdy Doody Puppet

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One step towards solvency in Detroit is to sell its assets including those at the Institute of Art. It’s called bankruptcy. As John Fund writes:

The Detroit Free Press asked New York and Michigan art dealers to evaluate just a few of the 60,000 items in the Institute’s collection. The experts said the 38 pieces they looked over would fetch a minimum of $2.5 billion on the market, with each of several pieces worth $100 million or more. That would go a long way toward relieving the city’s long-term debt burden of $17 billion.

Just the idea of selling art to avoid painful budget cuts that could send city-employee retirees into poverty in their old age elicits howls of anger. “Bidding stuff off is completely ridiculous,” Bill Shearrod, a grant manager for a Detroit nonprofit, told the Detroit News. “The DIA is the spirit of Detroit.” Local philanthropist A. Alfred Taubman said “it would be a crime” to sell any part of the collection. “It’s not just an asset of Detroit, it’s an asset of the country,” he told the Detroit Free Press. Michigan attorney general Bill Schuette issued a statement asserting that the art is actually held by a charitable trust and not owned by the city. But federal bankruptcy law trumps any state law, so his argument is on shaky ground. Kevyn Orr, Detroit’s emergency manager, took note of the criticism in his first news conference after Detroit’s bankruptcy was announced on July 19. “Nothing is for sale, including Howdy Doody,” he said. But his spokesman Bill Nowling later explained that Orr couldn’t take anything off the table in negotiations with creditors: “We’ve got a responsibility to rationalize all the assets of the city and find out what the worth is and what the city holds.

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E.J. Smith - Your Survival Guy

Preparing your investments and family for when disaster strikes.
E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.

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