Detroit

[Ice]

So is meh denial or acceptance?

Acceptance. It more a matter of when than if.

Or do they expect someone to bail out a city of the poor like a corporation of the rich?

Corporation of the rich? Bailing out General Motors helped the entire Midwest, specially southeastern Michigan. Part of federal assistance required gutting the entire senior management. Our economy would look pretty scary if General Motors had flat out went bankrupt without government assistance. I would think unemployment (already above the national average) would be double what it is now. I'm not sure I'd even have a job.

That being said, I would think the federal government does not want to start precedent and start bailing out cities. I mean, what would stop half the cities in California for asking for the same treatment?

Can someone explain to me what's actually happened here, what it means, and what happens now?

Lots of litigation will happen. Creditors will get paid off in order according to federal bankruptcy law resulting in a lot of unhappy people getting pennies on the dollar. Hopefully, this means a fresh start for Detroit, resulting in tax revenue being reinvested into the city and not used to pay crushing debt.

OK - maybe I didn't make myself clear.

How can a city go "bankrupt"?

See my links on the first page of this thread. A combination of corruption, a shrinking tax base, mismanagement, and making promises that you can't keep.