Hey, um, America? Want to see what you will look like in four years? Look here:
Moody’s Investors Service downgraded Detroit’s bond rating today deeper into junk status, citing uncertainty after the repeal of Michigan’s emergency manager law and a rising risk of municipal bankruptcy or default in the next 12-24 months.
Moody’s said Detroit’s inability to enact reforms meant to stabilize its finances was complicated by uncertainty after state voters repealed Michigan’s emergency manager law, Public Act 4, on Nov. 6, weakening state oversight of the city’s finances.
The ratings firm noted Detroit’s “precariously narrow cash position,” with Mayor Dave Bing’s administration warning that it will have to put potentially thousands of city employees on furlough Jan. 1 to avoid running $5 million short on cash to meet payroll.
The city’s program management director, William (Kriss) Andrews, has said Detroit is not at risk of missing debt payments, and he believes the city will be able to manage the cash crisis with furloughs and other cuts yet unidentified.
Sad thing, but this is what happens, when progressives run a city into the ground.
(Via Dateline Detroit)