Sunday, December 11, 2011

Detroit nears bankruptcy

Nowhere to run 

The motor city flirts with fiscal disaster 

Dec 10th 2011 | DETROIT

IN THE 1960s, the first hit song from Berry Gordy’s Motown empire was “Money (That’s What I Want)”. It might well be an anthem for modern-day Detroit. On December 6th Michigan took the first legal steps towards a state takeover of Detroit. If it happens, it will be the largest American city to be taken over by a state.
The problem has been building for decades; declining property values and the flight of better-off people to the suburbs have hit revenues, while the cost of servicing a still-sprawling city has not shrunk proportionately. The effects of the recession, particularly severe in Michigan, have provided the trigger for the crisis. Detroit’s mayor, Dave Bing, now says the city will run out of cash in April 2012. [More...]