Every now and then I'll read the Michigan Citizen or listen to callers on talk radio. One of the more curious ideas that keeps getting repeated is that Detroit isn't really bankrupt/insolvent. The reasons that are mentioned usually revolve around the following meme, "Detroit's Not Bankrupt Because...":

- ...we can still afford to pay our elected officials.
- ...we can afford to pay millions in legal and consultant fees.
- ...we still have xxx millions in taxes owed to us.
- ...we haven't sold off _____, _____, or _____.

Now for anyone with an accounting or financial background, these explanations make zero sense. Bankruptcy and insolvency doesn't actually require you to have zero in your account. We see paying $1MM in short-term legal fees as different from paying $1MM every YEAR in some long-term obligation.

But clearly, I'm biased because financials are my primary language.

So for those of you who don't believe the city is actually insolvent, here's my question to you... What exactly would the city need to look like in order for you to see the city as bankrupt?

No, seriously, what would have to happening before we actually appear insolvent?

Would it be paychecks that bounce?
Or should we sell off every jewel to the highest bidder and then spend through all that money first?
We could just lay off all our police force and then use that money to make sure all the bills are getting paid?

There's a segment of the population who believes that this whole thing is a big farce that's meant to screw over the little guy. For the purpose of this conversation, let's accept that as fact.

...so what would it look like to you before you were convinced we were an insolvent city? How far gone would we have to be?