Detroit is declaring bankruptcy. A whole bunch of banks, and other money places loaned Detroit billions of dollars over the years to meet operating expenses. Now they ought to loose all their money, just to make a point.
The point? It is irresponsible to waste precious capital lending to dead beats who won't be able pay it back. It was perfectly clear to anyone with an IQ above room temperature, that Detroit was in a death spiral and would never be able to repay the humungous loans it took out. The banks should not have made those loans. Since they were stuck on stupid, and made dumbass loans, they oughta hurt for it.
Capitalism works if capital is used constructively, to finance new factories, new products, and business operations. If precious capital is pissed away on see-thru office buildings, Ninja mortgages, Solyndra, mortgage backed securities, dirivatives, and credit default swaps, ethanol, and electric cars, we all get poorer.
Let's hope the loan officers responsible for lending to Detroit get fired.
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