U.S. city of Detroit goes bankrupt
Detroit was once an engine of American industry. However, it is now the biggest U.S. city to go bust and bankrupt. Its emergency financial manager said the city couldn't pay its bills, and was $20 billion in debt. He asked for financial help so it could continue to function. It owes money to big pension funds and 10,000 workers. City pensions are $3.5 billion short of money. Police, firefighters and public service workers are worried about their future. Fifty years ago, Detroit's car industry was an example of business success. It had the nickname "Motor City". It was middle-class but is now full of poor areas with empty houses and unemployment. Its busy factories have almost gone. Although important public services are continuing, street lights have been switched off. The city mayor said Detroit was not sustainable. It borrowed too much money and was late to pay pensions and bills. This led to its financial collapse. |