Declining revenue, a drop in employment and large, risky Wall Street deals are the real causes of Detroit's bankruptcy, according to a report by Demos, a liberal public policy organization.
Pension debt gets a bad rap in Detroit, but it isn't the true cause of Detroit's financial problems, said Wallace Turbeville, author of the Demos report.
Turbeville, who is an attorney and a former vice president at Goldman Sachs, said he has "been around insolvencies in cities … as long as they have been filing for bankruptcy. It's about the cash. Municipal insolvencies are always about a cash shortfall and political will."
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