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Comment by InclinedPlane | Hacker News Reader

When a company is forced to reorganize due to bankruptcy often a change of management is required. However, the "management" of Detroit is elected by the people, and they will likely choose to simply send the same folks or the same sorts of folks back into power after this happens.

How is this a reboot? To me it seems more like the typical infinite "just one more last chance" that enablers give to drug addicts.

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As a practical matter, for the next year or two, Detroit will be run by Kevyn Orr and a U.S. bankruptcy judge. After the bankruptcy, the governor might keep an emergency manager around, otherwise, the mayor and council will retake the reigns. But they'll be bound by: 1) the political fallout of the bankruptcy (it will be painful for everyone involved); 2) agreements entered into as part of the bankruptcy; and 3) more skeptical creditors going forward. Significantly, I think the bankruptcy is going to greatly reduce the power and influence of the public unions, as the emergency manager and the bankruptcy court spend a year or two restructuring things while going over their heads.

There's a great article on this: http://www.freep.com/article/20130603/NEWS01/306030014/City-....

I'm no Ch9 expert, but my understanding is that a receiver will be appointed. That person is not elected. So while the politicians retain executive power, the purse strings are taken away from them.

There will be much unhappiness and gnashing of teeth before it's all finished.

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