What led to Detroit's bankruptcy?

Detroit declared Chapter 9 bankruptcy July 17, making it the largest city in American history to enter the municipal bankruptcy process. A local judge ruled that filing unconstitutional July 19, but, as the city sorts out its next move, here are 10 key facts about the causes of Detroit's financial mess. 1. read more

Detroit’s bankruptcy filing followed a declaration of financial emergency in March 2013 that resulted in Kevyn Orr being appointed as "emergency manager" of the city by Michigan Governor Rick Snyder. Orr’s subsequent negotiations sought to get creditors to willingly “take a haircut” on Detroit’s debt, and were ultimately unsuccessful. read more

On Thursday, the city of Detroit filed for bankruptcy — the largest city in the United States ever to do so. (Carlos Osorio/AP) To get a better sense of just how Detroit got into such dire financial straits, it's worth browsing through this May report on the city's finances and this "Proposal for Creditors" from June. read more

The causes of Detroit’s bankruptcy are complex and varied and cannot be reduced to political sound bites from either the left or the right. The major problem seems to have been Detroit’s lack of economic diversification which began well before the ill-fated election of Coleman Young in 1974. Detroit basically became a one industry town. read more