As we reported yesterday, Detroit is now the largest US city to ever file for bankruptcy.
A Michigan circuit judge predicted that Obama would help Detroit out of its fiscal issues.
President Obama said he refused to “let Detroit go bankrupt” while he campaigned in 2012.
White House officials met on Friday and discussed how Washington could bail out Detroit. Vice President Joe Biden said the White House might help Detroit. “Can we help Detoit?” he asked. “We don’t know at this point.”
Although Obama will most likely end up bailing out Detroit, this would be a bad decision. By bailing the city out, it is sending a message to cities across the nation that if they get into fiscal problems, the feds will just come to the rescue. Detroit got itself into bankruptcy with fiscal irresponsibility. Now it is up to them to fix the problem themselves.