Motor City Learns From The Bailout Twins, Ponders Taxpayer Rescue Of It's Own

The deepening financial crisis in Detroit has intensified hints that the city could opt for bankruptcy, but financial experts warn the move could cost taxpayers millions, stall economic development and take years to be resolved in the courts.

Bankruptcy is an option if the city can't win major concessions from its unions and if the state's tough new emergency manager law is suspended or repealed.

Under the law passed in March, an emergency manager appointed by the governor would have the power to throw out union contracts, sell off assets such as the Detroit Water & Sewerage Department and other powers to fix the city's fiscal crisis.

 

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