The Blog

Who You Calling a 'Bailout'?

10:09 AM, Sep 27, 2013 • By GEOFFREY NORMAN
Widget tooltip
Single Page Print Larger Text Smaller Text Alerts

Detroit failed after years of one-party rule (guess which one), mismanagement, and corruption. Businesses closed down. Buildings were left derelict until they were torched for the fun of it.  Feral animals roamed the streets as the people fled.  After the usual protestations that it would never happen, city officials were compelled to declare the largest municipal bankruptcy in the nation's history.

And now, inevitably, Washington comes riding to the rescue.

"We're going to continue to support the efforts under way in Detroit and ensure the federal government is an active partner in supporting the revitalization of the city," said Gene Sperling, director of the White House National Economic Council, who has led federal discussions with Detroit on how best to help.

So, as Reuters reports, the federal government will be spending public money to rescue a city from the consequences of its own misgovernment and profligacy.  And what do we call that, children?

Well, we know what Washington does not call it.

The White House has said since July 18, when the city filed for bankruptcy, that it would try to find ways to help Detroit, while making it clear that a bail-out was not an option.

Recent Blog Posts