The city of Detroit filed the largest municipal bankruptcy case in US history recently.
Detroit has long been an icon of US industry but Governor Rick Snyder approved the historic filing of 18 billion dollars in debt.
Now, negotiations are underway with creditors expecting them to carry some of the burden by reducing their costs and not to mention slashing retiree pensions. This is going to hurt!
I'm no financial genius, but if you spend more than you earn, I have a funny feeling that at some point you will run out of cash.
So when these guys in office were a billion dollars in debt, I would have started to panic. But to let this figure go all the way to eighteen billion dollars amazes me.
And to top it off, on October 13th in 2012, President Obama boasted to the American nation that he would not let Detroit go bankrupt.
I wonder if this is going to be the start of other towns and cities following suit? We bailed out corporate USA; now let's see if we are going to bail out Main Street USA.