Detriot Files For Bankruptcy

Map of downtown Detroit with I-375 and BS-375 highlighted (Photo credit: Wikipedia)

DETROIT — Detroit on Thursday became the largest city in U.S. history to file for bankruptcy, as the state-appointed emergency manager filed for Chapter 9 protection.

Kevyn Orr, a bankruptcy expert, was hired by the state in March to lead Detroit out of a fiscal free-fall and made the filing Thursday in federal bankruptcy court.

A number of factors — most notably steep population and tax base falls — have been blamed on Detroit’s tumble toward insolvency.  Detroit lost a quarter-million residents between 2000 and 2010.  A population that in the 1950s reached 1.8 million is struggling to stay above 700,000.  Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.

In recent months, the city has relied on state-backed bond money to meet payroll for its approximately 10,000 employees.

Read more:  http://www.pottsmerc.com/article/20130718/NEWS04/130719263/once-mighty-motor-city-files-for-bankruptcy

Detroit’s Davos: Op-Ed Piece From The NY Times

Map of Michigan (Photo credit: Wikipedia)

ONCE a year, business and political leaders from metropolitan Detroit travel to an island resort that bans all motorized vehicles and talk about the regional economy.

For me, memories of childhood vacations at that resort, Mackinac Island — the ferry ride, the fudge shops, the horse-drawn carriages — are primarily olfactory.  In the unlikely event I’m ever again hit with the dueling scents of confectioner’s exhaust and horse manure, it would probably trigger some kind of Proustian flashback.

For years, Michigan’s business community seemed bent on flashbacks of its own, to the days when the Big Three automakers towered arrogantly from the safe confines of an insular culture.  But now its buzzwords are “innovation,” “entrepreneurship” and a “21st-century global market.”  This week’s Mackinac Policy Conference has positioned itself as a sort of Midwestern Davos, with a roster of marquee speakers, including Michelle Rhee, Jeb Bush and the hosts of “Morning Joe.”

The topic on everyone’s mind will be the fate of Detroit, which was placed under state control in March by Gov. Rick Snyder.  The governor, a Republican, is attending the conference, and four of the candidates running for mayor in November are scheduled to speak there today — among them, the front-runners: the excellently named former police chief Benny Napoleon, and Mike Duggan, who has a serious shot at becoming the first white mayor of Detroit in 40 years.

Read more:  http://www.nytimes.com/2013/05/30/opinion/detroits-davos.html?_r=0