When your tax base keeps fleeing this was inevitable. City lost 250,000 residents in the last 10 years. At one point Detroit had 1.8 million people living there, now it has 700,000.
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"Think I'm gonna be the scapegoat for the whole damn machine? Sheeee......."
Damn. I can't even forsee what kind of fallout that could have.
I'm not sure it'll have all that much of a fallout, they were already defaulting, this just formalizes it. It might actually give the city some hope as it removes the crushing debt burden going forward.
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When you do a signature and don't attribute it to anyone, it's yours. - Vulcan
I'm not sure it'll have all that much of a fallout, they were already defaulting, this just formalizes it. It might actually give the city some hope as it removes the crushing debt burden going forward.
That and it would give them ways to negotiate settlement perhaps. In the article I posted they talk about paying say 10-15 cents/dollar. That might rise of course, but obviously gives the city some wiggle room if they can settle.
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Orr (Emergency Manager Kevyn Orr, appointed by Michigan Gov. Rick Snyder to oversee the city's finances) already halted payments on about $2 billion in debt last month, saying the city needed to preserve its dwindling supply of cash. His reorganization plan calls for cutting $11.5 billion in unsecured debt -- including pensions, health care funds and loans not backed by assets -- down to $2 billion. That would mean that investors and retirees would receive an average of just 17% of what they are owed. Specific plans for the cuts are unknown at this time.
Detroit files for Bankruptcy
