Bankrupt Detroit Shouldn't Scalp Bondholders

Detroit, which just became the largest U.S. city to seek Chapter 9 bankruptcy protection, is in many ways unique.

Detroit, which just became the largest U.S. city to seek Chapter 9 bankruptcy protection, is in many ways unique. It has managed to lose a quarter of its population since 2000, for one thing. For another, its liabilities are a staggering $17 billion, according to an estimate by Emergency Manager Kevyn Orr -- in a city of roughly 700,000.

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