Detroit files for bankruptcy

In a move that will surprise no one, Detroit has filed for bankruptcy.

http://www.detroitnews.com/article/...ankruptcy?odyssey=mod|breaking|text|FRONTPAGE

I visited Detroit a few years ago and it was easily the worst place I had seen in the USA (until then I would have said it was North Philadelphia). The landscape had several burnt out skyscrapers and the only new building I saw was a casino.

Can't help but wonder which city (or state?) will be next.
 
Not surprising.

I drove through Detroit several years ago, I've seen better looking war zones.
 
I recently watched a video about Detroit. Produced by Detroiters. The average response time of the Detroit Police is 58 minutes. On any given day two-thirds of the city's ambulances are out-of-service. On a recent day a fire engine responding to a fire had it's fuel tank fall off.

As the Mayor himself said, Detroit's problem is very simple. The city spends more money than it takes in. And it has for a long time. Much of the spending is mandated. They've cut just about everything they can cut.

There's nothing left to cut. Detroit can't say, close the schools. Announce no more hospitals. Disband the police department.

As I saw on the video (if I can find it I'll link it), a north side Detroit woman was asked, did the city declaring bankruptcy scare her? She laughed and said, "Detroit's already bankrupt!"
 
Detroit hasn't had a Republican mayor in 50 years. I don't know who to blame this on.
 
anglolawyer said:
How can a city go bankrupt? What does it mean in ordinary, everyday terms. America is an amazing place.
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They borrow money to pay their operating costs or invest in capital improvements., and don't gather enough revenue to pay back the loans. They declare bankruptcy as a way of voiding those debts and subjecting their creditors to some sort of mitigated, equitable repayment solution.

ETA: Which part amazes you? Does the UK not have a similar bankruptcy provision in law? Do UK municipalities never borrow funds? Do UK municipalities never risk gathering less revenue than needed to pay off their debts? Do UK municipalities enjoy an exemption in law from paying off their debts?
 
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anglolawyer said:
How can a city go bankrupt? What does it mean in ordinary, everyday terms. America is an amazing place.
Click to expand...

Same as a household or corporation might go bankrupt. The city spent more than it was able to generate in revenue.
 
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