Around the Nation
Thu March 28, 2013
Bad Bets, Costly Promises Put Detroit On The Brink Of Bankruptcy
Originally published on Thu March 28, 2013 4:38 pm
The state of Michigan is taking over its largest city's finances. Washington, D.C., attorney Kevyn Orr's job is to reverse a death spiral in Detroit, brought on by an eroding tax base, and years of unwise financial decisions — like promising generous retiree benefits with money that wasn't there, and a pension financing deal that backfired in a big way. Now, massive debt service that threatens the city's ability to provide even a modicum of services.