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Detroit - bankrupt city

  • February 2014
  • 20 pages
  • MarketLine
Report ID: 2103671

Summary

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Introduction

The bankruptcy of the American City of Detroit, which could not cope with its gigantic debt estimated at $20bn, has been considered a symbol of the financial collapse of the US economy. This case study looks at the reasons behind Detroit’s current situation from the perspective of citizens, city mayors and car manufacturers.

Features and benefits

* This Case Study looks at the resons behind the Detroit going bunkrupt. It gives the insight into the misconduct and mistakes made over last 60 years.
* Anwsering the questions regarding the problems that have arise over years and cumulated.

Highlights

There are many reasons behind the bankruptcy of Detroit in 2013 and their origins are mostly to be sought in the second half of the last century. A weave of de-industrialization, poor land use planning policy, riots, improper taxation and unreasonable financial policy and continuous borrowing were at the bottom of the crisis.
Bankruptcy should not harm the Detroit Big Three car manufacturers headquartered in Detroit. It is a small paradox - because the troubles in General Motors, Chrysler, and, to a lesser extent, Ford contributed to the financial disaster of the city when they fell in the financial difficulties back in 2009.

Your key questions answered

* When Detroit's problems started and why?
* Is there a chance for the city to get up from its knees?
* What influance did the bad management have on the once prospectus city?

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