Detroit, once a powerhouse of American industry, has filed for bankruptcy. It has gone bust, to become the biggest city to declare insolvency in U.S. history. Detroit's emergency financial manager Kevyn Orr said the city could no longer afford to pay its bills, and was a whopping $20 billion in debt. He has requested the court's help in restructuring city finances to enable it to continue to function. He named over 100,000 creditors, including the city's major pension funds and its 10,000 plus public employees. Detroit's pension system is underfunded by over $3.5 billion, leaving many current and past police officers, firefighters and public service workers with big question marks over their future.

Half a century ago, Detroit was held up as a gleaming example of American enterprise. Its extensive automobile industry earned it the nickname "Motor City". However, the once-thriving middle-class city has degenerated into a sprawl of run-down suburbs with abandoned, boarded-up houses and high unemployment. The car factories that spawned its success have all but disappeared. The city said essential services would continue, but street lighting had been cut off. The city mayor explained: "Detroit simply was not on a sustainable footing, continuing to borrow, continuing to defer pension payments, continuing not to pay its bills on time – continuing a deepening insolvency."