Today, Detroit’s fate is in the hands of a receiver and a judge as the legal entity has filed for bankruptcy to relieve it from paying 65 cents on the dollar to creditors. It is insolvent and is being managed by the State Michigan even though it has an elected mayor and government. That is an odd mess.
It took years of mismanagement to arrive at this condition. It is surely not a demonstration of successful community self-determination and governance.
There are a number of reasons why this has happened.
- The auto industry tumbled economically, hurting the city.
- It is a city that is demographically poor.
- It is a city that was abandoned by many including the entertainment industry that made a lot of money from its roots there, but fled with prosperity.
- It never got gentrified.
- Economic sustainability and viability have been out of reach without any sponsorship.
So, the city that was languishes on the edge of the lake in a pristine spot that once was a happening place, if not ever a great place to live.
"Detroit argues bankruptcy case in court while unions contest city methods
Protesters surround courthouse in which judge will decide whether city meets the requirements for Chapter 9 bankruptcy
An attorney representing Detroit urged a judge Wednesday to allow the city to fix staggering financial problems through bankruptcy, arguing that without it nearly 65 cents of every tax dollar eventually would be gobbled up by debts and other obligations.
The extraordinary trial, expected to last days, brings the bankruptcy case to its most crucial stage since Detroit made its public filing in July, the largest in US history. If a judge finds certain legal requirements were met, the city would get the green light to restructure $18bn in debt and possibly slash pensions for thousands of people, the most controversial target so far."