Detroit, the once fourth largest city in the US, has filed for bankruptcy this afternoon.
While it will take time to sort through all various liabilities the once prosperous manufacturing city holds, it is estimated at around $18 billion. This is the largest government bankruptcy in the history of US.
In a recent public speech, analyst Tao Dong of Swiss Bank indicated China's local governments were indeed broke. Some may be encouraged to weigh the option.
On the other hand, Senior Analyst Mei Xinyu of the Commerce Ministry of China forewarned the bankruptcy in a July 7 article, in which he attributes violence, corruption and welfare of Black as the main reason for the fall of the motor city.