Detroit Ran Out Of Money To Pay The Lawyers

Regular readers will know what I'm talking about -- the $1,000/hour lawyers advising Detroit on how NOT to declare bankruptcy. Lotta good that did 'em.

So, Detroit declares bankruptcy. It will be interesting to see how this plays out.

The Journal reports:

The city of Detroit filed for federal bankruptcy protection on Thursday afternoon, making the automobile capital and one-time music powerhouse the country's largest-ever municipal bankruptcy case.

The Chapter 9 case filed in U.S. Bankruptcy Court for the Eastern District of Michigan came after Kevyn Orr, the emergency manager, failed to reach agreements with enough of the bondholders, pension funds and other creditors to restructure Detroit's debt outside of court. The final decision rested with Republican Gov. Rick Snyder, who had appointed Mr. Orr as Detroit's overseer in March.