Displaying posts tagged with


How Detroit went broke: The answers may surprise you – and don’t blame Coleman Young

By Nathan Bomey and John Gallagher/Detroit Free Press Business Writers | FILED UNDER – Local News / City of Detroit | 1:10 AM, Sep. 15, 2013 | Detroit is broke, but it didn’t have to be. An in-depth Free Press analysis of the city’s financial history back to the 1950s shows that its elected officials […]

What Really Ails Detroit

By STEPHAN RICHTER Published: August 15, 2013 NYTimes IS Detroit’s collapse the story of one American city gone awry? Or is it indicative of a more profound nationwide problem? The facts point to the latter. Though Detroit’s bankruptcy is exceptional in many ways — notably, its size and its disproportionate impact on African-Americans — the […]

Woes of Detroit Hurt Borrowing by Its Neighbors

BY MARY WILLIAMS WALSH NYTimes AUGUST 8, 2013, 7:55 PM The Detroit Effect has rippled all the way to Wall Street. Two weeks after Detroit declared bankruptcy, cities, counties and other local governments in Michigan are getting a cold shoulder in the municipal bond market. The judgment has been swift and brutal. Borrowing costs are […]

The Wrong Lesson From Detroit’s Bankruptcy

August 11, 2013, 11:44 pm By JOSEPH E. STIGLITZ NYTimes When I was growing up in Gary, Ind., nearly a quarter of American workers were employed in the manufacturing sector. There were plenty of jobs at the time that paid well enough for a single breadwinner, working one job, to fulfill the American dream for […]

Michigan attorney general backs pensioners in Detroit bankruptcy

By Susan Kelly Sat Jul 27, 2013 5:14pm EDT Reuters (Reuters) – Michigan’s Attorney General Bill Schuette, a Republican, said on Saturday he would defend retirees who risk losing public pensions because of Detroit’s bankruptcy, putting him at odds with the city’s emergency manager appointed by fellow Republican Governor Rick Snyder. Schuette, an elected official, […]

Detroit: Myths and truths about bankruptcy

Greg Gardner, Detroit Free Press 12:04 a.m. EDT July 28, 2013 USA Today Two recurring misconceptions often repeated in the last several weeks: The domestic auto industry and Detroit are synonymous, and rich city pension benefits have pushed the Detroit budget into ruin. DETROIT — Suddenly, everyone’s a Detroit expert, whether he or she has […]

Billions in Debt, Detroit Tumbles Into Insolvency

DETROIT — Detroit, the cradle of America’s automobile industry and once the nation’s fourth-most-populous city, filed for bankruptcy on Thursday, the largest American city ever to take such a course. The decision, confirmed by officials after it trickled out in late afternoon news reports, also amounts to the largest municipal bankruptcy filing in American history […]

Financial Crisis Just a Symptom of Detroit’s Woes

By MONICA DAVEY Published: July 8, 2013 NYTimes DETROIT — A question unimaginable in most major American cities is utterly commonplace in this one: If you suddenly found yourself gravely ill, injured or even shot, would you call 911? Many people here say the answer is no. Some laugh at the odds of an ambulance […]

In Embattled Detroit, No Talk of Sharing Pain – NYTimes.com

By MARY WILLIAMS WALSH and STEVEN YACCINO Published: June 17, 2013 NYTimes When New York City threatened to declare bankruptcy in 1975, the idea so terrified everyone that it forced the city, its workers and its recalcitrant bankers to sit down and find ways to share the pain. Now another large city, Detroit, appears to […]

Detroit defaults on some of its debts

14 June 2013 Last updated at 16:42 ET BBC Detroit will immediately stop debt payments, the city’s financial manager has announced, as he set out a proposal to creditors that would see them take a drastic cut on the money they are owed. Kevyn Orr announced a moratorium on all Detroit’s payments on unsecured debt. […]