Detroit is officially Belly-Up

Detroit is suspending payments on $2 billion of unsecured debt, marketing parking garages and telling retirees to rely on President Barack Obama’s health-care law to avoid a record municipal bankruptcy. . June 14 (Bloomberg) -- Steve Miller, chairman of American International Group Inc., talks about Detroit’s $386 million deficit and outlook for the city. Kevyn Orr, Detroit’s emergency manager, is holding a closed-door creditor meeting today intended to cap the creation of a recovery plan for the city. Miller speaks with Erik Schatzker and Scarlet Fu on Bloomberg Television’s “Market Makers.” (Source: Bloomberg) Those are among proposed changes in a 128-page restructuring plan Emergency Manager Kevyn Orr offered yesterday at a meeting of creditors in Detroit. The moves, including spending $1.25 billion over 10 years to bolster safety and remove blight, will give an insolvent city a viable future, Orr said.

The result of bad governance.