Monday, July 29, 2013

Detroit largest US city to file for bankruptcy, but for how long?

Detroit becomes largest US city to file for bankruptcy in historic 'low point' | World news | guardian.co.uk: " . . . . The governor painted a picture of a city in collapse. Citizens wait 58 minutes for the police to respond to calls, compared to a national average of 11 minutes. Only a third of ambulances were in service in the first quarter of 2013. There are approximately 78,000 abandoned buildings in the city. The unemployment rate had nearly tripled since 2000 and the homicide rate was at its highest level in 40 years, he said. Detroit is unable to meet its most basic obligations to its residents, let alone its creditors. "The citizens of Detroit need and deserve a clear road out of the cycle of ever-decreasing services," Snyder wrote. . . ." (read more at link above)

Who's next? LA, Oakland, or ???

Mish's Global Economic Trend Analysis: Detroit Files Chapter 9 Bankruptcy; Oakland, LA, Others on Deck; Pension Promises vs. Bondholders in Spotlight; The Bright Side: "Clearly this is not a surprise. Nor did the stock market treat it like a surprise. What's going to be a surprise . . . is when Oakland, LA, Houston, Baltimore, and numerous other cities declare bankruptcy to escape untenable pension and health-care promises." (read more at link above)

 

No comments: