Detroit, the city once considered as the symbol of industrial might has gone bankrupt recently. Fed is struggling to find ways to pay billions of dollars owed bondholders, retired cops and current city workers.
American consumers were well known for their reckless spending habit. It was the consumers- who managed to prop up the economy so far through spending, have started to manage their wallets carefully. Now they are focusing on wealth accumulation and financial literacy.
The local government is already under tremendous pressure and I am not sure how they are going deal with all complaints and deals.
Detroit was recognized as a city of fortune. We have seen a scenario in which Americans have reached the peak of the prosperity. The plodding place of Chevrolet Corvette, and Marvin Gaye, a mainstay of Motown music, just suddenly emptied, suddenly the city has converted into the set of Hollywood zombie movies with dry leaves roaming around and those bruised buildings.
The stomping grounds of Harley Earl, who helped make the Chevrolet Corvette, and Marvin Gaye, a mainstay of Motown music, emptied as the suburbs swelled. Now the city is plagued by barren lots and empty buildings.
Its population, which peaked at 1.85 million in 1950, has declined to about 700,000, according to U.S. Census data. Manufacturing jobs fell from about 296,000 in 1950 to fewer than 27,000 in 2011. Still I can see no sign of hope.
Now the unfunded pensions has become the greatest challenge for the Obama administration. Nobody knows, how the $2.04 billion unfunded liabilities will be managed.
This has become a matter of shame and fury for the whole nation. The government has spent trillions of dollars to settle others fight, to invade others place and it was the general people who have paid all the taxes.
Now, the government even cannot pay the provident fund money to those retired citizens who paid the money to run the war.
Is this the sign of a new beginning? America is falling, may be China will possess the next realm. However, the Americans don’t worry for that at all, for them survival is the severe issue now.