The Thriller
Well-Known Member
https://www.deseretnews.com/article/865583324/Detroit-files-for-bankruptcy.html
On Thursday, Detroit became the largest city in American history to file for bankruptcy.
The bankruptcy was filed in the Eastern District of Michigan by Kevyn Orr, a bankruptcy expert. According to CNBC, Orr was hired by the state in March to attempt to resolve the city's financial woes in an out-of-court restructuring. However, these attempts were rejected by bondholders and creditors, leading to today's filing.
The Deseret News reported last fall on how municipalities across the country have faced increased employee benefit and pension costs, and decreasing tax bases. But Detroit's economic picture is by far the bleakest. Detroit's budget deficit is believed to be more than $380 million, and long-term debt may be as high as $17 billion to $20 billion. Detroit's tax base has also been decimated as the city lost a quarter-million residents between 2000 and 2010. In 1950, Detroit's population was near 2 million. Today, it is around 700,000.