Bankrupt Detroit a Sad, Troubled City: Dowd

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July 19 (Bloomberg) -- In today's "This Matters Now," Bloomberg political analyst Matthew Dowd examines Detroit's long fall into bankruptcy and how it relates to the finances of the U.S. government. He speaks on Bloomberg Television's "Bloomberg Surveillance."

Which institution failed detroit?

The first is the leadership.

In current -- including the current mayor.

He was a former starter for the detroit pistons.

But the economics have been dead for detroit.

They had a lot of changing business structures.

In the end, leadership and a lack of long-term planning over the last 40 years really hurt detroit.

We have troubled cities out there.

Los angeles has been in the news.

There are smaller cities facing bankruptcy.

When you look at detroit, it is said to be a unique thing.

What did you experience where you knew this was coming?

My father worked in the auto industry for 35 years, for chrysler, so we watched growing up -- we moved out two months before the riot in 1967, so we were part of what happened in there.

My brothers and sisters, some of which are still there, some of them had to leave that area of michigan because they could not find jobs.

I was just back there two weeks ago.

You drive in that city, and it is such a sad thing because building after building, this is a city that in no case anywhere else has lost more than half its population in 40 years.

What is the lesson for washington?

What are republicans and democrats in need of knowing this morning?

Detroit could not pay their bills and were running a deficit, which is what we are doing in washington.

Second, there was this huge long-term debt obligation.

The federal government has 50 trillion dollars -- has $50 trillion to $60 trillion in debt.

All of those things for -- are very much the same as what is going on in detroit.

The federal reserve, the government can print their own money.

Matt dowd, thank you so much.

This text has been automatically generated. It may not be 100% accurate.


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