Detroit used to be a powerhouse of American industry. Yesterday, it went bust and filed for bankruptcy – the biggest U.S. city to do so. Its emergency financial manager said the city could no longer pay its bills, and was a huge $20 billion in debt. He asked the court to help restructure city finances so it could continue to function. He named over 100,000 creditors, including major pension funds and 10,000 public workers. Detroit's pension system is underfunded by over $3.5 billion. Many present and past police officers, firefighters and public service workers are now questioning their future.

Half a century ago, Detroit was a shining example of American business success. Its huge car industry gave it the nickname "Motor City". However, this former middle-class city has declined into uncared-for suburbs full of empty houses and high unemployment. The factories that generated its success have almost disappeared. The city said key services would continue, but street lights had been cut off. The city mayor said Detroit was not on a sustainable path. He said the city borrowed too much money and did not pay into pension funds or pay its bills. This led to its financial collapse.