Richard Dale ‘Rick’ Snyder, 48th Governor of Michigan, USA, said last Sunday that the federal government will not ask for a bailout for Detroit and maintained that their bankruptcy was necessary to rebuild the city.
“I can not wait for one (a federal bailout). The state cannot bail out the city of Detroit,” Snyder revealed on CBS.
On Thursday, July 12, Detroit went bankrupt for a debt of 18 000 million. This decision caused great political and social controversy, despite decades of mismanagement that had made such a predictable event.
Almost half of the debt comes from pension funds and retiree health insurance, this turns current and former employees as the first to pay the consequences in a restructuring of the administration of Detroit.
Vice President Joe Biden said this week that the government did not know what they could do. Moreover, the mayor of Detroit, Dave Bing, said through ABC, “I think it’s very difficult to ask for direct aid.”