The dust continues to settle after Detroit, thought by many to have once been one of America's greatest cities, filed for bankruptcy last Friday. Long-known for its storied role in the American auto industry, Detroit now has the distinction of the largest city in U.S. history to file for bankruptcy.
“Despite Mr. Orr’s best efforts, he has been unable to reach a restructuring plan with the city’s creditors,” Michigan's Republican Gov. Rick Snyder said in a letter last week. “I therefore agree that the only feasible path to a stable and solid Detroit is to file for bankruptcy protection.”
“We must face fact that [Detroit] cannot & is not paying its debts,” he added, “it is insolvent.”
Unemployment in the Detroit has almost tripled over the last 13 years, currently sitting at 16.3% – more than double the national average of 7.6%. Among other brutal facts about Detroit compiled by the Economic Collapse Blog, almost 80,000 homes in the city now sit abandoned — many have been vandalized or are being used by a host various drug addicts.