http://www.nytimes.com/2013/08/19/us...lity.html?_r=0
This is an interesting essay from the morning paper about whether the federal court will allow approve bankruptcy for Detroit. Kevyn Orr will need to show that
*what is being done is consistent with Michigan laws
*a good faith effort has been made to negotiate settlements without recourse to bankruptcy
*the city has sold all or almost all assets
It will be interesting to see what side the state's attorney general takes in this matter.
If the federal court rejects bankruptcy for Detroit, will the governor and the legislature have to find a way to pay Detroit's creditors and fund their pension liabilities? Will they have to do this for the many other cities and school districts in the state whose financial problems resemble those of Detroit?