July 19 - Detroit files for the largest municipal bankruptcy in US history. Julie Noce reports.
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The American city of Detroit has announced it will file for municipal bankruptrcy -- the country's largest in history.
Michigan Governor, Rick Snyder.
(SOUNDBITE) (English) MICHIGAN GOVERNOR RICK SNYDER SAYING:
"This was a difficult and painful decision but I believe there are no other viable options. Why did I do this? What's the rational and and what's the impact for both the city of Detroit and the state of Michigan? Well let me start with the fact that this is a situation that has been 60 years in the making in terms of the decline of Detroit, from a financial point of few let me be blunt: Detroit's broke."
Detroit, once a thriving metropolis, is now home to some 78,000 abandoned buildings and is suffering its highest murder rate in nearly 40 years.
With an estimated 18.5 billion dollars in debt, the city's Mayor Dave Bing tried to put on a brave face for residents.
(SOUNDBITE) (English) DETROIT MAYOR DAVE BING SAYING:
"One of the things that I want to say to our citizens is that, as tough as this is, I really didn't want to go in this direction, but now that we are here, we have to make the best of it."
In anticipation of the filing, investors drove bond prices lower sending their yields to record highs on Thursday.