Wednesday, December 4, 2013

Analysis: So a Judge Rules Detroit is Bankrupt

All of southeast Michigan is affected by Detroit.  Today's ruling was an important development, but the story will be playing out for years yet.

Most people were not surprised when Judge Steven Rhodes declared Detroit eligible for bankruptcy.  His basic reasoning: Detroit is in such bad shape that negotiations are futile, was perhaps not as obvious.

Odds are high that The Thinker will remain where it is, bankruptcy ruling or not.

Ruling pensions and DIA assets to be on the table was the pivotal points of Judge Rhodes' decision.  Although he discussed a high standard for implementing pension cuts and art sales, it would not be surprising if he approved a plan Orr came up with that included those items.

This ruling is only a first step, and was going to be appealed either way.  Now we know who will file the appeal and who will answer the appeal.