Detroit Bankrupt....who's next?

[lp85253]

Lots bigger tax base in cali... detroit wentbroke from longterm neglect by the suburban tax base

 

[twilight zone]

I believe bankruptcy is a legal procedure to restructure the union and pension contracts. Any legal heads out there that can give their opinion?

 

[Longshot]

Any place that has less tax payers than tax receivers will follow suit...having people that pull many times more than they pay only accelerates the process.

 

[fobrinkle]

Lots bigger tax base in cali... detroit wentbroke from longterm neglect by the suburban tax base

And crooked politicians, been going on for decades

 

[lp85253]

And crooked politicians, been going on for decades

yes

 

[dogofwar]

Here's a summary of the cities in the US that have gone bankrupt since 2010: http://www.washingtonpost.com/blogs...-s-cities-that-have-gone-bankrupt-in-one-map/

The decline of fiscal health in California can largely be attributed to Prop 13, which has made raising property taxes nearly impossible since 1978. The foreclosure crisis resulting from the past recession further reduced the tax base and made it hard for cities and municipalities to pay debt (bonds) for city services (e.g. water treatment plants, roads, bridges and other infrastructure).

Detroit, on the other hand, is a case study in the decline of a once vibrant city and the auto industry. Both have been in a death spiral for some time. Pretty much any US city that was heavily reliant on manufacturing is in similar shape...

Matt