The city of Detroit may file for federal bankruptcy as soon as Friday morning, according to a report in the Detroit Free Press.
Citing "several sources," the Free Press reported that the beleaguered city is currently in the final preparations of the process. After the filing is complete, there will be a 30 to 90 day period during which it will be determined whether the city is eligible for Chapter 9 protection.
It's only the beginning. Will the state of Illinois be next? THIS IS NOT THE TIME TO OWN MUNICIPAL BONDS. But the ultimate biggie will be the US government. Will they default or just super-inflate by printing more money to pay the bills?
(ht Talking Points Memo)
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