The city of Detroit, former center of automobile production in the U.S., has been in the process of decline for decades. Little by little, manufacturers decided to setup operations elsewhere and took the good-paying jobs with them. Most of the people with ability and initiative soon followed, as neighborhoods decayed and crime rates soared.

Instead of cutting expenses, the city has been borrowing to finance an operating deficit of over $100 million per year. It is now officially bankrupt with over $20 billion in debt and its bonds reduced to junk status. In March, the state Governor was forced to bypass the "honorable" city officials featured in the 2012 financial report and appoint an emergency manager with special authority to try and clean up the mess. The preliminary recovery plan outlines some of the problems.

The industrialists and engineers that built the "Twentieth Century Motor Company" have moved on, the skilled workforce has been dispersed, and the bondholders have just been screwed again. The remaining population of "Mo'Town" is 85% black, most are dependent on government welfare, and over half of them can't even read. The city is now rated the "most dangerous" in the country, with a murder rate 8 times the national average and similar stats for assault and robbery.

What sort of "recovery" is possible under these conditions?