Detroit has become the largest American city to ever file for bankruptcy.
With debts of more than 18 billion US dollars, Michigan Governor Rick Snyder has authorized Kevyn Orr, the city’s emergency manager, to file for federal bankruptcy. Snyder’s office says the governor declared a financial emergency for Detroit on March the 1st. If the bankruptcy filing is approved, Detroit city assets could be liquidated to satisfy demands for debts payment.
The population of Detroit that in the 1950s, when it was the center of the country’s automobile industry, reached 1.8 million is now struggling to stay above 700,000. Much of the middle-class and scores of businesses have fled, taking their tax dollars with them.