Detroit: Bankruptcy all but Official

The Free Press is reporting that Detroit could file for bankruptcy as soon as tomorrow.

The City of Detroit is in final preparations to file for federal bankruptcy as early as Friday morning, several sources told the Free Press today.

The filing would begin a 30- to 90-day period that will determine whether the city is eligible for Chapter 9 protection and define how many claimants might compete for the limited settlement resources that Detroit has to offer. The bankruptcy petition would seek protection from creditors and unions who are renegotiating $18.5 billion in debt and other liabilities...

Detroit’s would be by far the largest municipal bankruptcy in U.S. history, in terms of the city’s population of about 700,000 and the amount of its debts and liabilities, which Orr has said could be as high as $20 billion. Because of the stakes involved, and the impact on residents statewide, as well as 30,000 current and retired city workers and Detroit’s ability to stay in business, the case could be precedent setting in the federal judiciary. It could also set an important trajectory for the way troubled cities nationwide settle their financial difficulties.

This will be a sad day. No one wanted this, but it was inevitable, I think. Something needs to be reset, although this could only screw over pensioners and others who served the city and could now be screwed out of their legitimate compensation. But there's no money left. None. And this could set a precedent for many other states and cities that have spent beyond their means to offer benefits they cannot afford. 

Updated: Never mind...it's official