Why Detroit has nothing to lose from bankruptcy

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A person named Lynndee Kemmet opined in the Detroit News that Detroit should avoid bankruptcy because:

When municipalities receive bankruptcy protection, or go into receivership, unionized employees are not the only ones who stand to lose. A city in bankruptcy becomes a far less attractive place to live and work. Residents with the resources to move elsewhere often do, leaving behind those least able to pay the taxes needed to get the city out of its mess.

Bankrupt cities have taken decades to recover. A bankrupt city is not only less attractive to residents and good employees, but it’s also far less attractive to businesses that might help spur future economic growth.

And then there are future investors. A bankrupt city is unlikely to find buyers for future bonds for roads, sewer and water projects, city buildings and parks.

Hey babe – relax: Those trains all left the Michigan Central station many moons ago.

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