Moneylife???Life???World???When Detroit, the world's traditional auto capital, files for bankruptcy
Detroit's bankruptcy, the largest municipal bankruptcy filing in the US followed a declaration of financial emergency in March 2013. New York Times call Detroit as 'home to 700,000 people, as well as to tens of thousands of abandoned buildings, vacant lots and unlit streets'
Detroit city, better known as the world's traditional automotive centre, has become the largest city ever in the US to move for bankruptcy, with a liability running into $18 billion.
?
Detroit, which at one time had a population of about two million, has now reduced to just 70,000. However, the city's debt and unfunded liabilities has grown to over $18 billion. Detroit does not have the revenues to meet those obligations and provide an adequate level of services to its people, who pay the highest taxes per capita in Michigan.
?
In a video message posted on a website, Michigan Governor Rick Snyder said, ?Today I authorised Detroit?s emergency manager to seek federal bankruptcy protection for the City of Detroit. This is a difficult, painful step, and it is one I would not be authorising if I felt any other viable option remained?.?
?
In 2010, the city had a population of 713,777, more than a 60% drop down from a peak population of over 1.8 million at the 1950 census, indicating a serious and long-running decline of Detroit's economic strength.
?
?The fiscal realities confronting Detroit have been ignored for too long. I?m making this tough decision so the people of Detroit will have the basic services they deserve and so we can start to put Detroit on a solid financial footing that will allow it to grow and prosper in the future,? the Governor said.
?
The decision allowed Detroit Emergency Manager Kevyn Orr to make a filing under Chapter 9 of the Federal Bankruptcy Law.
?
Chapter 9 protects financially distressed municipalities from creditors while their debts are resolved under the direction of a bankruptcy judge.
?
The ongoing decline has left its mark on the city, most notably in severe urban decay and thousands of empty homes, apartment buildings, and commercial buildings around the city.
?
More than half of the owners of Detroit's 305,000 properties failed to pay their 2011 tax bills, exacerbating the city's financial crisis.
?
The resulting elevated unemployment was compounded by white flight and middle-class flight to the suburbs (and in some cases to other states), and the city was left with a reduced tax base, depressed property values, abandoned buildings, abandoned neighbourhoods, high crime rates, and a pronounced demographic imbalance.
?
The state governor declared a financial emergency in March 2013, appointing an emergency manager.
?
?Bankruptcy is the only feasible option to fix the city?s finances and do what is right for the 700,000 people of Detroit,? Snyder said.
?
A White House spokeswoman said, ?the US President and members of the President?s senior team continue to closely monitor the situation in Detroit.?
blake shelton sofia vergara LIRR nhl Espn Nba paul mccartney bruins
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.