Detroit Going the Way of Greece

A brief bit of good news first. The city of Detroit has benefited from the automotive business growth and a few other bustling business sectors in the past few years. But even optimistic Ford dealers can't conceal the poverty that now plagues the city.

Here's the bad news. The vast majority of the city sits in ruins and will run out of money in May without a miracle fiscal plan to stabalize the intractable finances.

Libraries, hotels, churches, historic landmarks, theaters, ballrooms, business-buildings, central station... they've all been abandoned over the past few years as Detroit has struggled to stay afloat in today's tough economy.

Fisher Body 21 Plant in Detroit, image courtesy of flickriver.

Mayor Dave Bing recently rejected a proposal from a state-appointed oversight board. The city does not want to give up its power, but it also can't solve any of the financial problems that leave Michigan embarrassed by the blunders of its biggest city.

Detroit will face the real humiliation once Michigan appoints an emergency manager to take over the city's finances. When this occurs, Detroit will know first-hand what Greece has been going through over the past year.

The Washington Times reports:

“Something has to happen. I think what everybody agrees is that the status quo is not sustainable. The city is out of money,” said Michigan State University economist Charles Ballard. “I’m sympathetic to the consent agreement in the sense that right now it seems that it’s the only thing on the table. Local governments don’t like to be told what to do, so it’s understandable that there is reluctance in parts of the city. 

Mr. Ballard went on to explain the Greece analogy: the Greeks resented giving in to the Germans, but had no other choice as they could not maintain finances at status quo.

Likewise, Detroit will have to surrender its power to since its leaders have proven incapable of agreeing upon a viable solution.

Michigan's Governor Rick Snyder has warned Detroit time and again of the risk the city is in due to financial misfortune and mishandling. In six days, the governor's appointed emergency review team will assess the situation and make recommendations and proposals regarding a financial takeover in Detroit.

The governor assures citizens that he is not trying to attack Detroit and mandate a ruthless takeover. Rather, he says he is trying to work towards real, sustainable results for the citizens. He wants Mayor Bing to believe that the two of them are in this complicated mess together.

To see what the hard-hit majority of the abandoned city looks like, take a look at the shocking video below. It's chilling depictions include century-old Gothic architecture in ruins, empty libraries, ornate designs decayed by abandoment, and eyesores on nearly every street...