bankruptcy

John Aglionby

Detroit filing for chapter 9 bankruptcy might have come as a shock to outsiders and anyone glancing at the city’s slick official website, but people who know the home of Motown well say there has been a certain inevitability to its demise.

Doron Levin, who first reported from the city in 1984, in a blogpost for Fortune, blames generation after generation of elected officials who were blind to the long-term implications of their policies:

“[They] dithered and dissembled and argued, instead of undertaking tough measures to close fiscal gaps. In truth, the city’s financial liabilities were created by the very people who should have been resolving them: one administration after another promised wages, job guarantees and pensions to city workers that were simply unsustainable.”

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♦ Detroit became the largest US city to file for bankruptcy. Time magazine looks at the decay of the city. The Washington Post’s Ezra Klein points out Detroit is not alone.
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♦ They were the irreplaceable loot from the art heist of the century. But to Olga Dogaru, a resident of a tiny Romanian village, burning them was the only way to save her son from prosecution. The problem is that he is the man charged with orchestrating the brazen theft last October of works worth hundreds of millions of dollars from the Kunsthal museum in Rotterdam. And the works were masterpieces by the likes of Picasso, Monet and Gauguin. Read more