Detroit going bankrupt is a function of unsustainable union and pension obligations. Chapter 9 bankruptcy is a great tool to renegotiate those contracts, as happened in Stockton.
Detroit’s actually on a rebound, thought it is and does need to shrink. This was a move made by the state-appointed emergency manager because it is the only option that will give him sufficient leverage to renegotiate union deals.
Thanks! I know a bit about bankruptcy, and think you are right. However, it is sad because there are many individuals who will suffer, even though it’s their own fault.
I still find that sad, because that’s all that they knew.