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The article tells us that Detroit's plan for the adjustment of debts that will help the city pay off $7 billion of unsecured liabilities from its $18 billion. This shows that Detroit is doing pretty well on handling its bankruptcy but both pensioners and both bond holders will take the pain under the agreement. People's pensions of retirement will be cut by 4.5%. Health care benefits will also be cut by 90%. Bond holders like Syncora has to face huge cut, it will only get 26 cents on one dollar. Foundations, private donors and the state of Michigan raised $816 million to protect Detroit Institute of \Arts (DIA) from the city's creditors. The funds will go toward public workers' pensions. But it is only the beginning to be fully recovered since the situations that Detroit facing do not seems hopeful.
The adjustment plan sets aside $1.7 billion for basic services and infrastructure over the next nine years, but Detroit will probably run out in about five years. The city has to rebuild its credibility as soon as possible in order for outsiders to lend to.
Detroit needs good governance in order to get back up. With that said, our government needs to put the money into cities in need like Detroit instead of putting extra money into military defenses. Eliminating welfare for all able bodied people will help kick off people who depends upon welfare and crimes -- Ghetto Gangster class, will also help with the city's recovery.
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