FX.co ★ Detroit screaming SOS

The Detroit bankruptcy filing to the corresponding U.S. court was declared illegal. It was Kevyn Orr, the city's unelected emergency manager, who initiated that step after the failure of negotiations with pension funds and trade unions. If the court had ruled the bankruptcy legal, the authorities would partly clear the debt by virtue of selling the Detroit property at an auction. That could allow the local government to pay off to police officers, doctors, and firefighters. The debt of the automobile manufacturing capital amounts to $20 billion not including $380 budget deficit. Besides, the population of Detroit declined more than twice - from 2 million people to 700,000. To date, an Ingham County judge referring to the pensioners' rights violation announced that the claim was unconstitutional and must be rescinded by the Michigan state governor. However, in compliance with the law and American jurisprudence, the specialists have no doubt that the decision of the county judge cannot influence the bankrupting procedure since such cases are the top priority. The public prosecutor's office has prepared a decree requiring to direct the judge's solution to the Michigan Court of Appeals. The analysts are sure that the bankruptcy will not affect the financial system of the U.S.A. and do not reflect the economic situations of the States in general. Despite the fact that the debt of Detroit is quite outstanding, on the scale of America that amount is not that large. The White House is warily watching the situation and ready to timely react to any changes.