HOT Detroit Defaults on Unsecured Debt

This is only the beginning. It is not the time to own  municipal bonds.

Detroit will immediately stop debt payments, the city's financial manager has announced, he set out a proposal to creditors that would see them take a drastic cut on the money they are owed, reports the BBC.

Kevyn Orr has announced a moratorium on all Detroit's payments on unsecured debt. Creditors were asked to accept 10 cents on the dollar of what they are due, reports the BBC..

According to figures presented by Orr, Detroit has some $11.5 billion of unsecured debt.