8 New Cities on the Verge of Bankruptcy
By FRANK MARCHANT
July 23, 2013
Detroit is the largest municipal default in the history of the US.
The city owes $9.2 billion in pensions, $1.9 billion to creditors and is $18.5 billion in debt.
The city’s infrastructure is collapsing. Almost half of its streetlights are not working and aren’t being repaired.
The average time for Detroit police to respond to an emergency is just under an hour. Crime has spiked. Many in the city have resorted to carrying firearms for their personal protection.
The city bankruptcy epidemic is likely to spread around the country, resulting from years of overspending on wages and pensions in order to keep public employee unions happy and city politicians re-elected.
We take a look at 8 U.S. cities on the verge of bankruptcy: