‘Detroit’s Not Going Into Bankruptcy’ (So Much for That) - the Maddow Blog
Update: A county judge has blocked Detroit’s emergency manager and the Michigan governor from filing bankruptcy proceedings for Detroit. They had rushed the paperwork through five minutes ahead of a hearing on challenges by retirees who stand to lose benefits in a bankruptcy. “I have some very serious concerns because there was this rush to bankruptcy court that didn’t have to occur and shouldn’t have occurred,” the judge said.
On June 14, 2011, Michigan Governor Rick Snyder talked to reporters after returning from financial meetings in New York. From the Detroit Free Press account:
“Detroit’s not going into bankruptcy,” Snyder told reporters, as he beamed with encouragement from his meetings Monday with three top bond rating agencies in New York. He said he hopes Michigan’s rating returns to the highest levels possible.
“We’re going to work hard to make sure we don’t need an emergency manager, and bankruptcy shouldn’t be on the table,” Snyder said of Detroit.
Snyder went on to appoint an emergency manager for Detroit, in March, and now that emergency manager has filed for bankruptcy for Detroit, with Snyder’s blessing. The emergency manager and Rick Snyder control what happens in Detroit now. The city is not really a democracy, not at the moment.