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Newsflash: Detroit, the “Motor City”, facing bankruptcy
Posted By AIM Newswire On February 3, 2013 @ 11:00 am In AIM Newswire | No Comments
DETROIT — A bastion of liberal policies, the once-famous city of Detroit is now facing outright bankruptcy. It has, for the past several years, avoided bankruptcy from its creditors. But, as it cannot keep with its payments and excessive spending, it might have to declare bankruptcy.
The “Motor City” has seen vital industries decline and leave its confines, as well as the majority of its residents. The city limits still exist, but the resident population has moved out. With its tax revenue decreasing sharply, Detroit has to take care of additional properties and provide services within its city limits and incurs even more expenses and debt.
Even Reuters admits that Detroit’s “labor costs are out of whack”. Isn’t that bad enough that the liberal mainstream media admits that?
This could lead to the largest Chapter 9 municipal bankruptcy filing in U.S. history, and write a sad chapter in Detroit’s storied history. The southern California cities of Stockton, Mammoth Lakes and San Bernardino have filed bankruptcies, but a major metropolis (or also-ran metropolis) shows the signs of the times.
Detroit, at its peak, was the 5th-largest city in the U.S. Now, it sits at 18th largest. Its crime rate sits at 11 times the rate in New York City, at an astounding one murder per 1,719 people. Its unemployment rate also sits at an astronomical 18%. Its debt is currently at $8.2 billion and Detroit’s credit rating is now in the “junk” category.
Republican governor Rick Snyder was upset at the city’s dire finances and put together a team to look through the city’s books. This audit could lead to the state of Michigan taking over the city’s finances and appoint an emergency manager to manage the finances, and would then propose the best solution. In this case, bankruptcy court looks like the best bet.
Is this the end of the “Motor City”? Or a new beginning?
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