globaleconomicanalysis.blogspot.com / By Mike “Mish” Shedlock / December 03, 2013 10:02 PM
I mentioned to my wife Liz tonight, that I thought “the bottom was in for Detroit“. She asked “why?”
Here’s my lengthy answer.
Unlike Vallejo, California, it is highly likely Detroit will actually shed pension obligations in the first go-around.
A mere 25% of students graduate from high school. Can Detroit schools get any worse?
In 2010 I wrote about Mayor Bing’s plan to Cede 20% of the City to gangs
Detroit has been bankrupt for years. It simply refuses to admit it. Detroit’s schools are bankrupt as well. A mere 25% of students graduate from high school.
Yet, in spite of hints and threats from mayors and budget commissions, and in spite of common sense talk of bankruptcy, Detroit has not pulled the bankruptcy trigger.
In a futile attempt to stave off the inevitable one last time, Mayor Bing’s latest plan is to cutoff city services including road repairs, police patrols, street lights, and garbage collection in 20% of Detroit.