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Detroit Bankruptcy A Cautionary Tale

Fresno City leaders say Detroit's bankruptcy provides a warning to all.
Once an iconic American success story, Detroit has found itself making history in all the wrong ways, now becoming the largest U.S. city to declare bankruptcy.

“Everything that can go wrong, went wrong," said Fresno City Councilmember Lee Brand.

For Brand, the tragic story of
Detroit’s fall from grace is a cautionary tale. Like Detroit, Fresno was hit hard by the recession but Brand says that's where the similarities stop. Unlike Detroit’s auto industry, Fresno still has a thriving agricultural engine that accounts for billions every year but financial experts say one thing everyone can learn from Detroit is to expect the unexpected.

"It's very hard for cities and municipalities to do any long term budgeting but that would have been very helpful in this case," said financial analyst Henry Nishimoto.

Poor planning helped bankrupt
Stockton in 2012 and San Bernardino only two months later. Across the country more than eight cities and counties have declared bankruptcy in just the past three years and with the recession still lingering, some wonder if there may be more.

"There is no way a city can cushion itself and insulate itself from a national recession like we just experienced," said Nishimoto.  

 

 

 

 

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