No motor in this CIty

Detroit Becomes Biggest U.S. City to File for Bankruptcy - Bloomberg: "Detroit became the most populous U.S. city to file for bankruptcy, seeking court protection from creditors while it tries to eliminate a budget deficit and cut long-term debt.

“I authorize this necessary step as a last resort to return this great city to financial and civic health for its residents and taxpayers,” Michigan Governor Rick Snyder, a Republican, said in a letter today authorizing Kevyn Orr, the city’s emergency manager, to file the petition.

Michigan’s largest city has seen its population decline to 707,000, down 7 percent since 2010, according to U.S. Census data. Median household income was less than $28,000, compared with $49,000 statewide, and more than 36 percent of residents lived in poverty as of 2011, Census data show. The median home value of $71,000 was barely half the $137,000 value statewide.

The city listed assets and debt of more than $1 billion in a Chapter 9 petition filed today in court in Detroit. Chapter 9 of the U.S. Bankruptcy Code is reserved for municipalities and differs from the rules used by bankrupt companies in Chapter 11."

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