The bankruptcy of Detroit, considered to be the largest in US history, offers several lessons for others to keep in mind.
Detroit had to file for protection after it could no longer sustain the billions in debt and pensioners' liability as its economy and working manpower continue to dwindle. Although it's very easy to play the blame game, the important thing is how to gather the rubble to become the foundation as Detroit tries to rebuild itself.
First, bankruptcy itself offers an opportunity to start from scratch. In Detroit's case, it could reinvent the wheel of bureaucracy. Second, Detroit also debunked the myth that dealing with the government is the safest bet for investors.
Finally, the US economy has been hit by the government's refusal to demolish insurmountable debts. Detroit could be the test case that will provide a path for others to emulate. Although the experiment could fail, it might also succeed.
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