(AP - Detroit) Four years ago, America's Big Three automakers mortgaged all they owned or went into bankruptcy court to keep from going broke. Since then, General Motors, Chrysler and Ford have all returned to full financial health, unlike Detroit itself, which filed for bankruptcy Thursday after years of painful decline.
So why can't the Motor City use bankruptcy to transform itself in the same way?
Unfortunately for Detroit, it's not that simple. Automakers shed most of their problems in bankruptcy court and came out leaner and more competitive. The city can get rid of its gargantuan debt, but a bankruptcy judge can't bring back residents or raise its dwindling revenue.
Douglas Baird is a bankruptcy law professor in Chicago. He says Detroit's situation is much harder because it doesn't sell a product.