Because they aren't eligible? Bankruptcy is a perfectly sensible path for cities with intractable debt problems, but there aren't so many cities in Detroit's position. And if your budget is only a bit out of balance, putting your fate into the hands of a bankruptcy judge might not be such an appealing option.
We will see. I'm guessing it will turn out to mostly be your imagination.As a creditor, I'd imagine that you'd have much, MUCH tougher requirements for Detroit now.
What was a lender's expectation previously? Detroit wasn't actually creditworthy before the bankruptcy, which is why the city had to do things like pledge casino revenue in order to float bonds.Detroit's population loss has yet to display any signs of bottoming out, and it's now proven that the state and federal government are only willing to go so far to bail Detroit out when it screws up financially. What's your incentive to float a loan so the city can fix streetlights on Fenkell?
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