Detroit's fall

[nairiporter.livejournal.com]

Detroit has amassed a $ 327 million budget deficit this year, and the amounts the city owes to various public employees, pensioners and institutions, already exceed $ 14 billion. Detroit is at the brink of bankruptcy. The Michigan governor Rick Snyder knows this very well. And he may have looked determined to do everything possible to prevent the worst from happening. But, as could be expected, the measures he was planning were insufficient - even though they included everything from drastic cuts, to tearing down the union agreements, to selling out public property. These desperate steps fail were doomed to fail, and now Detroit is heading toward a bankruptcy that would be the biggest in recent US history.

But it would hardly be the first. Last year two towns in California, Stockton and San Bernardino also declared bankruptcy, and they surrendered their fiscal management to their state. And the state of Michigan had to take over six troubled towns, among them such famous centers of automobile industry like Flint and Pontiac.

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