San Bernardino, California went bankrupt before Detriot, and Bell, California had a huge problem with their city council giving themselves inflated salaries. It is very easy to see why these cities went bankrupt when they have leaders like this running them. This is why people really need to pay attention to politics because it could happen in a city near you.
As industry is abandoned in the US, more and more cities that relied on this industry are failing to achieve any financial recovery. Cities that have not moved from industry into the service sector are doomed to fail. Not only are other US cities bound to follow in Detroit's footsteps, but there have been many smaller cities that have failed well before Detroit did.
Yes, I think that it's possible that other cities will follow Detroit into bankruptcy, because other cities are not managing their finances much better than Detroit did. Chicago is another example. Politicians in Chicago bought the vote of government workers with high pensions that they could not pay for. It will catch up with them.
Anything can happen in a really bad economy. Yes, Detroit has gone bankrupt, and many other cities across the United States of America are teetering on the edge of collapse. These cities, as well as the citizens of live in them, need a lot of help. Austerity measures won't help either; they need credit and financial aid.
I personally agree,The US needs a wake-up call to change its attitude regarding unsustainable debt. It is for long too been addicted to 'free' money and this has to end. Markets are ready to acknowledge this.
Gold will be new currency standard in the near future. A new finacial era is about to start.