It's official: Detroit now a ward of the state of Michigan

This was invevitable, given the precipitous loss of population and a viable tax base. But there's also no doubt that mismangement of city finances had much to do with this action by Governor Snyder in appointing a fiscal manager for the city answerable only to the governor's office. Reuters: Michigan Governor Rick Snyder cleared the way for a state takeover of Detroit, declaring that the birthplace of the U.S. automotive industry faces a fiscal emergency and that he has identified a top candidate to assume its management. The fate of Detroit is being watched closely across the country as many cities and towns are still struggling to recover from the housing bust and the deep recession that followed. Friday's declaration by the Republican governor virtually assures that the state of Michigan will assume control of Detroit's books, and eventually decide whether the city should file the largest municipal bankruptcy in U.S. history. Detroit has faced the steepest population...(Read Full Post)