Detroit files for bankruptcy protection.
Just like individuals and businesses, a municipal
government could go bankrupt.
When you owe more than what you earn and
become unable to pay your debt, you may liquidate some or all of your assets to
pay off the debt, issue I.O.Y. (I Owe You: a signed document acknowledging a
debt) to your employees and venders, ask for bankruptcy protection to keep your
daily business going or take all of these options. But if you employ a large
number of personnel and owe your citizens and businesses your services, you
have no choice but to take all these options to fulfill your duties.
This time, the city of Detroit, a major
urban center in the Great Lakes region of the American Midwest and the center
of the American automotive industry for more than a century filed Chapter 9
bankruptcy protection to prevent itself from being liquidated and to keep running
their services, including the police, firefighting units, schools and administrative
functions.
The city has a nick name of “Motor City” or
“Motown” as it hosts Big 3 auto manufactures, General Motors, Ford and
Chrysler, which is now owned by Italian car manufacture FIAT.
Enjoy reading and learning how badly such
an iconic American metro city became bankrupt.
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