miles an hour winds to the face during storms but apparently having them stand on a corner in downtown detroit, oh, that is just too dangerous an assignment. [ cheers and applause ] tell that exactly... exactly how are things in detroit? >> the detroit has lost more than 237,000 residents in the past decade. >> 78,000 city structures have been aabandonned. >> 50% of the parks closed in 2008. 40% of the street lights don't work. >> this is a city that is closed 100 schools since 2004. >> folks in detroit wait an average of 58 minutes for police to respond. that's compared to the national average of 11 minutes. >> john: it takes 58 minutes for the police to come. so wait. hold on. if you get shot in detroit, you can get a pizza faster than you can get a cop. in fact maybe that's the only way to survive there. hey, dominoes i would like one large pizza with two policemen and a side of paramedics, please. and can you stuff the crust with gauze because i'm bleeding terribly. thank you. [ cheers and applause ] now look. detroit has not been in a good way for decades. but this bankruptcy still came a

. >> reporter: lately, high-tech entrepreneurs have breathed life into downtown detroit. analysts wonder about the impact of today's filing. >> the stigma or pale of bankruptcy may cause people who were thinking of expanding business or moving business to detroit to rethink that. >> reporter: late today, the emergency manager, kevin orr, and detroit mayor dave ding reassured citizens that for them, nothing would change. services will keep going and bills will be paid. brian? >> john yang, who is our chicago-based correspondent. back in chicago tonight, john, what was the financial news out of the city of chicago today? >> reporter: well, moody's gave a big hit to the city's credit rating, knocking it down three pegs. moody's mentioned not only a $36 billion unfunded pension obligation that the city has, but interestingly, they also mentioned the gun violence that's been plaguing this city. chicago, from the beginning of the year through may, has paid $40 million in police overtime. brian? >> john yang on the news from chicago today and of course, the very bad news out of d

fiscal frenzy: from capitol hill to downtown detroit, the nation's finances are making headlines. in today's cover story, why americans are feeling more attached to work while on vacation. and, mark your calendars. we'll tell you when to expect relief at the pump. plus, why traders are setting up for low expectations from apple's earnings. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's tuesday, july 23rd. i'm angela miles. in today's first look: will today become 24? yesterday, the s&p 500 rallied to its 23rd record close of the year. the dow rallied 2 points, the nasdaq 12, and the s&p 4. gold made major gains, jumping $42, and oil slipped $1.35. in earnings after hours, online video company netflix topped forecasts, but subscriber numbers were lower that expected. and chip-maker texas instruments beat the street on earnings and revenue. and a southwest airlines landing mishap that closed down laguardia aiport last night is under investigation. the boeing 737's nose gear reportedly collapsed. g

we'll bring you downtown detroit, show exactly what it's like with the pawn shop in downtown detroit.re also, of course, watching your money. several big names you know are making moves, amongst them are mcdonald's, down by the way, and netflix, apple, stay right there. you're about to see the money and how the markets open monday. peace of mind is important when you're running a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information fe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. ♪ >> well, it may be upbeat music, but mcdonald's really disappointing financial results today. that stock is going to be down big, it's a dow stock so it's going to drag the index down as well. seconds to the opening bell, here is tres knippa in chicago. and going to keep printing be and do you guys figure that in, do you care about japan at all?

storage everything is changing i live in an hour right now but i'm thinking of moving you know downtown detroit and i got some family here you know a lot of my friends that have moved in city and i have faith in detroit there's like you know how it was back in the 1940's it was going to come back super encouraging words there from people that you just talked to in the screening i never thought i would see that and i'm saying you know detroit's coming back what will it take for detroit to get back a mirror does that to get worse before it is better well i mean it's already it's already hit rock bottom it's already been to worse so now it's really only going to get better and that's really really exciting of course there's a lot of work that needs to be done a lot has to happen was to be management but as i covered in my report there is tech innovation there is investments coming into the city right and left and i think all of that is really really exciting for the people that live there and they're really starting to see the growth and even if the federal government turns its back on the city th

i'm now in the downtown of detroit.is vibrant area unlike pictures we see in the neighborhoods where we see tremendous blight. this police has been revitalized already. why do you think bankruptcy is a positive for the city right now? >> the one thing that devote is missing outside capital investment. michigan, yeah, quicken loans, blue cross-blue shield, general motors. 12,000 new jobs in downtown detroit over the last three years. over $10 billion, billion with a b, private sector dollars, private investment in detroit in the last five years. so what's missing? it is outside money coming in. that will not come until government fixes -- >> but if bondholders i don't know what better way to say but screwed on this bankruptcy, what does that do to the municipal bond market and the ability of not only detroit but other municipalities who are in trouble to get financing? >> steve rattner, former auto czar, been reading what he is saying about that. he expects very, very minor impacts in the municipal bond markets. those ci

the resurgence that senator levin is talking about is very obvious in places like downtown detroit in place called midtown which is not far away where we are starting to see this sort of fight staff entrepreneurialism of the economy takeoff with a lot of young people where we see quicken loan s is now headquartered here and abroad 10,000 new place to downtown detroit over the last few years. there are lots of other businesses that are starting to sort of collective themselves in the cities for. you have young people moving into if there is a momentum there and in energy fed is really important. -- and energy that is really important. people away from downtown and midtown, you see a big difference. we have block after block in places where there is one or two houses on the bluffs left -- on the block left and the level of abandonment is exacerbated by the level of poverty and is exacerbated by the lack of services. lights 40% of the street in detroit that do not work. at night in these neighborhoods, it is very dark which also leads to a lack of safety. it is a big city. it is 139 squa

but from downtown chicago to downtown detroit, you want your public schools to be at a certain level,cago public schools were at a certain level. detroit schools are worse in chicago, but they have to be a certain level to put your d there anyway. that was not mh of a difference. melissa: thank you for coming on, good luck to you and best wishes for the future. you are cap it and brave, good for you for seizing the opportunity. next line "money," has a curtain closed on the box office flops? you may be shocked to hear what movies are making money. plus the u.s. oil boom is booming. give any idea how much bigger could actually be? why se states are not even trying to get in. is yours one of them? melissa: matter what time it is, "money" is always on the move. shares of netflix getti hit after hours. estimates the subscriber growth came in below expectations. adding 630,000 subsccibers during the quarter. estimates were for up to 800,000, so that is raising concerns. bscriber growth for netflix may be slowing. we will keep an eye on that one. summer movie season in full swing but you wo

matte down below on the vaulted ceiling and it is actually one of the few buildings in detroit, downtown detroit that is very well preserved and maintained. so i didn't want the whole book just to be a decay i wanted it to be a dialogue about the city and about its history. this is a sort of signature picture from the book. this is a high school which is in fact where philips studied typing. this was in a chemistry class room after the vandal and the intense heat of the fire melted the thin plastic face of the clock so the face of time is literally dripped over the hands of the clock. and i am a great lover of the kalin photographs, and so in the photo if you can also read the name of the clockmaker it says national time, so that's the name of this photograph. and this is on bell island which is one of the great escapes of detroit, sort of their central park if you will. this is in what had been the boat house and this is a little different where a lot of pictures show the ruin for the destruction. it was a place that had just sort of been emptied out. everything has been removed. the structure

but from downtown chicago to downtown detroit, you want your public schools to be at a certain level,go public schools were at a certain level. detroit schools are worse in chicago, but they have to be a certain level to put your kid there anyway. that was not much of a difference. melissa: thank you for coming on, good luck to you and best wishes for the future. you are cap it and brave, good for you for seizing the opportunity. next line "money," has a curtain closed on the box office flops? you may be shocked to hear what movies are making money. plus the u.s. oil boom is booming. give any idea how much bigger could actually be? why some states are not even trying to get in. is yours one of them? "piles of money" coming up. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and okerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office. i can talk to someone who knows how i trade. (announcer) scottrade. because i don't trade like everi'm

privatesector investment in the city of detroit just in the last five years, 12,000 new jobs in downtown detroitn the last three. melissa: why is it double what it is elsewhere then? >> the unemployment rate as the city as a whole, and neighborhoods are a different story than in the central city downtown core. it really is a tale of two cities. the businesses are doing well. th are increasing. thyhave market share, bringing people in, and downtown is becoming a vibra place that's investable. the neighborhoods, however, are struggling greatly, and -- the city itself, the city finances, that is the big challenge, and jim is exactly right. bankruptcy is jus a tool. it's not the end and of itself. we have to use this opportunity of bankruptcy o restructure how government delivers services in a much more effective fashion. missa: tell me what he answer is, sandy. >> again, just like th auto companies who went through bankruptcy, th just didn't go through and fix the balance sheets. they fixed the way they did business. they provided better services, or in this case, better products. the city needs to

could you possibly come to downtown detroit and pick me up from the police station?rstandably daisy is nervous and doesn't want to give her mother her full story. it's 2:30 a.m. and daisy's mother, awakened from sleep seems too disoriented to comprehend what her daughter is telling her. >> i'm at the police station. because. will you just get down here and pick me up. the police station. just come pick me up. >> hello. >> yes, ma'am. can you hear me? >> it's a phone call that will change daisy's life. >> no problem. are you able to come down here and pick up your daughter? >> her mom's coming. >> everyone is under arrest period. because all these whole s aren't healthy unless you actually eat them ♪ multigrain cheerios. also available in delicious peanut butter. healthy never tasted so sweet. we're talkingere. with lisa also available in delicious peanut butter. about the walmart low price guarantee. nothing says all american like... bbq sauce! you know if you find a lower advertised price they'll match it at the register. nice! oh my gosh! bring in your last grocery

cleveland cavaliers and who has purchased, since the beginning of the year, 17 office buildings in downtown detroit, today was to have a press conference where he was going to offer to purchase the unfinished wayne county jail and two other jails and a court facility to in effect it would be torn down and there will be a brand new streetscape and brand new investment in terms of retail, residential, et cetera for the city of detroit. the businesses continue to invest in the city of detroit and they're not going to be at all deterred from investing and participating. >> i hope so. >> what i think will happen, melissa, if i'm wreck, i think what will happen, is that at the end of the day, other cities in the united states will be coming to the city of detroit to find out how you all did it. melissa: i hope so. >> what occurred and why, and you all are turned around. i hope what results from all of this, is that the bondholders and others, the other creditors, who will have to take somewhat of a haircut and i think there will be negotiation. melissa: everyone will have to in this. >> but the city of d

a fast-burning fire rages in a home in downtown detroit. >> this is a story we first brought you last1:00. two people had to jump to safety to make it out of their burning home alive. >> detroit firefighter michael joiner is one of the first responders at the scene. >> we got a call to a dwelling fire. it was on helen street. which is on the east side of detroit. it appeared someone fire bombed the structure. >> from the outside it looks like the fire is raging out of control. it's actually contained to the front of the house, but the two clearly terrified residents, a man and a woman, are so panicked they may not realize it. >> when they threw the fire bomb, it broke out on the porch, whatever type of accelerant they had, it ignited and created a lot of flame, a lot of smoke. the porch was on fire but it never extended into the actual dwelling. >> onlookers scream for the residents to wait for the fire department, but they make a split second decision to jump. the man goes first. come on. >> he lands without major injury. seconds later, the woman tumbles out. >> oh! [ screaming ] >>

advocates say the project will attract investment and jobs to downtown detroit. e a city in bankruptcy should not spend more than $400 million on a hock a arena. should detroit build a $440 million hockey stadium? go to greta wire.com and vote a, it's insane for a bankrupt city to sfen this money on a hockey arena or yes, it would be a great stimulus to create jobs. go to greta wire.com and vote in our poll. we're back in two minutes. mine was earned in djibouti, africa. 2004. vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection and because usaa's commitment to serve military members, veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. >> with hotwire's low prices, we can afford to take more trips this year. hit the beach in florida... >> and a reunion in seattle. when hotels have unsold rooms, ey use hotwire to fill them. >> so we got our four

dan, you now have 9,200 employees in downtown detroit. land holder in detroit. you put a billion dollars into the city. you own more than 30 properties downtown. what do you think of this latest news? >> i don't think this news is unexpected. we closely believed this would be the end result. it was a matter of time. it's painful for a lot of people, i think it's a pain, we're going to have to go through. this whole year if not decades in the coming here. i think finally when we get through this pain, detroit is going to really have an opportunity to start with a clean slate and start operating a city like we should have been operating it for a long period of time and i'll have the ability to operate it getting from underneath this debt. i think it will be optimistic in great times for detroit moving ahead, although with ehave pain here and a lot of noise in between. >> dan, i have been stunned. i was following this from afar. looking at the numbers out there, in terms of the population decline going from $1.8 million back in the 1950s to a

companies have by and large stayed in detroit, both general motors has its headquarters right in downtown detroit. has not fled to the suburbs. the ford family are great supporters of detroit. chrysler is. you've got peter caramanos. you've got quicken loans. you've got the ilitch family. you've got people like roger penske, a lot of -- >> this can be fixed. you know, they have the highest property taxes in the country. did you know this? not only for individual homes, bob lutz. they have the highest business property taxes in the country. >> i know, sure. >> these things can be changed. they can be fixed. business can be welcomed back. smart people in the hospitals and smart people in the universities and smart people in technology. this can be fixed. what can't be fixed is collective bargaining. that's my big point. that has to be changed. >> yes. and i think this is probably a further blow to public sector unions because they're going to fight this thing. the reason it went into chapter 9 instead of a workout which kevin orr wanted, is the union pension funds were absolutely intransigent. they

. >> reporter: here in downtown detroit in a building that was home to a general motors design studiothe fortunes around one second at a time. watches, high-end watches that cost up to $1,000 each. they are being man fractured in a city that filed for bankruptcy and homicide is up. >> anyone can get in the car and see the past and understand the past clearly. it was about the spirit of the folks we met. >> reporter: the ceo wants to be part of the city's come back using the skills and resources that once made detroit an industrial power house. >> we have folks that came from manufacturing. one lady on the line, her job was replaced by a machine many years ago. willie on the line used to be the security guard in the building. we have people from different backgrounds and that makes part of this exciting. >> reporter: and rewarding for the employees that seen detroit in better times. >> watches we made, a big deal to me. >> reporter: the brand is quickly catching on. shinola opened two years ago and in the past month opened stores in detroit and new york. the watches are selling out on

advocates say the project will attract investment and jobs to downtown detroit. argue a city in bankruptcy should not spend more than $400 million on a hock a arena. should detroit build a $440 million hockey stadium? go to greta wire.com and vote a, it's insane for a bankrupt city to sfen this money on a hockey arena or yes, it would be a great stimulus to create jobs. go to greta wire.com and vote in our poll. we're back in two minutes. [ male announcer ] the biggest news in breakfast is actually tiny. new kellogg's raisin bran® with omega 3 from flax seeds. plus plump juicy raisins. flax seed? who are you? i still got it. [ male announcer ] invest in your heart health with kellogg's raisin bran® cereals. it guides you to a number it guides you to a number that will change your life: your sleep number setting. it even knows you by name. now it's easier than ever to experience deep, restful sleep with the sleep number bed's dualair technology. at the touch of a button, the sleep number bed adjusts to each person's ideal comfort and support. and you'll only find

borne out by the number of executives they have brought into these companies, whether at gm and downtown detroitand ford at dearborn and chrysler's headquarters out in auburn hills. so they will continue to hire and attract talent so they are not happy to see detroit go bankrupt. >> obviously not. certainly no one is. let's talk about the airline accident yesterday at laguardia in new york. what's the latest on the southwest incident? it was a collapsed landing gear. this video is just unbelievable, phil. >> yeah. >> what is southwest saying, and is this an isolated incident? >> at this point they are trying to figure out why the landing gear did not function because there was no indication to the pilot, to anybody, that the landing gear would not function as it was supposed, to so they are investigating that at this point. they finally cleared it from the runway. remember, laguardia had massive delays. >> oh, yeah. >> last night it was closed for a while, sue. using one runway this morning, and now they have got both of them up and functioning. finally working through the delays. it's going to

one thing, there is a kind of revival in downtown detroit. 90% occupancy. a lot of young people moving down there. there is a spark, a core that is hopeful but they have a monstrously difficult problem ahead of them in terms of unwinding their financial morass. now in certain ways that doesn't cripple city services or deal a crippling blow sglp the biggest problem with detroit are those ploetd pensions. you have the aging population, auto workers, retired auto workers and o retired public sector workers. think about new orleans and think about the devastation there, lack of infrastructure, police, schools. they had mitch landrieu and other great elected officials in the comeback for new orleans. the civic community like walter isaacson and others who not together and rolled up their sleeves and figured out a twir bring new orleans back stronger and better than ever. you never say die but detroit really is a huge challenge. >> new orleans got a lot of help. i have great admiration for mitch landrieu. i think he is one of the greatest public officials in the

in fact, you cannot find loft space or condo space or an apartment in the downtown or university district in detroitalists that have come into town just to cover the bankruptcy are really surprised as they walk around downtown that this is a city that's insolvent, because there's a lot going on. detroit was built for a city of frankly more than 2 million people. we have probably less than 700,000 now. the city simply can't afford to keep the street lights on, pave the streets and provide policing service for they see far-flung neighborhoods. we have to consolidate. >> sandy, how is the chamber financed? what kind of firepower do you have to market detroit nationwide, let's say, over the next 12 months? >> we are almost completely financed by the private sector and contributions. we're one of the largest chambers of commerce in the country. that alone tells you that business activity in the region is very, very strong. so we have an entire economic development team that does nothing other than go out to the international business market, site selectors, businesses that are expanding. we tell the regi

dan gilbert who owns quicken loans he has been buying downtown detroit buildings partly as a civic gesture and part because it was cheap and could save his money in and cheaper than out in the suburbs, i think if detroit can deliver basic services and give businessmen confidence the city will function i think you will see people take advantage of the low cost of being there. >> rose: so this is paul krugman writing in "the new york times", so detroit just uniquely irresponsible? again, no detroit does seem to have especially bad government but for the most part the city was just an innocent victim of market forces. what, market forces have victims? of course they do, sometimes it loses from economic change or individuals whose skills have become redundant and sometimes there are companies serving a market niche that no longer exists and sometimes there are whole cities that lose their place in the economic ecosystem. decline happens so by all means let's have a serious discussion about how cities can best manage the transition when their traditional source of competitive advantage go away.

we're seeing a ton of entrepreneurs in downtown detroit.eing our car companies flourish but the city is -- we're there, let's get on with it, let's hope there is a promise at the other side, much as we saw with the general motors and chrysler bankruptcies. >> what is the role of autos in the recovery story? detroit the home for many automakers. how much has the industry shrunk since the financial crisis and do you see it ever recovering some of the strength in detroit that -- enough so to help out the city? >> well, definitely the detroit automakers are all in far healthier positions than they were. we're seeing tremendous growth. we're seeing ford made an announcement this morning, a couple of days ago, about some hiring they're doing. but there aren't that many plants left in the city of detroit. there is one that chrysler jeep grand cherokee, so, yes, it is important, but the city has problems on its own, like the shrinking population, legacy costs with pensions. years of mismanagement of the city, that are separate from the automakers a

can't get anywhere else. >> we've heard it said earlier today that getting an apartment there in downtown detroit city where you get a closet, absolutely you are right on that. thank you very much. >>> president obama's statement on race still reverberating through america but how will it resonate in history. rvey's i'm so happy you're home dance. that's real love. and so is giving him real tasty food. but some leading dog foods add sugar, dyes, or even artificial preservatives. [ dog whimpers ] but now there's new so good! from iams. with 100% real wholesome ingredients and none of those other things. now that's real love. so is that. new so good! see what's really in your dog's bowl at iams.com. new so good! all this produce from walmart and secretly served it up in the heart of peach country. it's a fresh-over. we want you to eat some peaches and tell us what you think. they're really juicy. it must have just come from the farm. this right here is ideal for me. walmart works directly with growers to get you the best quality produce they've ever had. what would you do if i told you all this pro

detroit. occupancies over 90% in downtown and midtown detroit because of young people.e offer and grow is is the city government issue. by having better services, there's a real opportunity to see an exciting detroit, a great detroit again. >> give us an estimation how long you think it's going to take for the city to climb out of this state. >> well, in terms of the bankruptcy process, my hope is we can get that resolved by fall of next year. it is going to be a longer-term process to get through all these issues. you're going to see things improve in detroit in the next 30, 60 dies days, how can we st taking down structures, how can we do better with police protection? there's a new police chief. many good things are on the path to being put in place to help citizens. >> quickly, sir, before we lose you, what about the new red wings stadium? hockey fans want to know, will it go forward. >> yeah, that's one of the exciting things. detroit is a big sports town. tigers are going to win the world series. lion, super bowl. >> his job is to be cheerleader for the state. for

services firm, closed their india operations and hired a bunch of people in downtown detroit because er than india. quicken loans has moved people back in. but you're talking about a small downtown area. it's a good news story. but detroit's 137 square miles. i actually friday went out, toured a lot of these areas. you could fit new york, boston and san francisco into detroit's geographic land mass. it was built for 2 million people. there's 700,000 people. here's some video. this is what actually -- that house we showed that said "scrappers will be shot," somebody lives there. people are spray painting their own homes that they're still existing in. get off my yard or i will shoot you. because it's so violent and so -- it's literally ha heartbreaking. >> we went up to mackinac island, mika, and we were talking of course to a lot of michigan legislators, a lot of detroit people. they do have a lot to be excited about of course. the politicians in detroit have been dysfunctional. the political process has been dysfunctional. they've promised more than they could deliver for decades. bu

detroit today. in terms of the business community, in terms of jobs being created, downtown and midtown detroit in terms of young people moving into the city, there's 90%-plus occupancy in the city. we need to look at improvements in the neighborhoods. good things are going on there. this is about solving the city government's financial and service issues and that's the last obstacle to go and beyond that when we get this resolved i think detroit is going to be posed for outstanding growth and a bright future which is great for all of michigan. >>suarez: you've got other distressed cities in your state and there are other distressed cities around the country. are they watching the massive bankruptcy closely and might it get heart harder for cities to borrow and will it drive up the cost of borrowing? >> there are discussions on both sides of that argument. but i was hired by the citizens of michigan including the 700,000 wonderful people in detroit to get an answer for them. this can's been kicked down the street for years and years, enough is enough. this is the way to do it. this is the way to address

he closed a beautiful building in the suburbs to bring people downtown, who is purchasing properties and investing in so many ways in detroit, along with a wonderful coalition of business leaders who are committed to the revitalization of this great city. they aren't showing you the beautiful renovations of campus marshes and the amazing things happening downtown on woodward avenue where you can go on any day now and see people that are there, younger people, older people, enjoying the beautiful surroundings. they aren't showing you the surge of innovative companies that are breaking new ground in creating opportunity in detroit. on tv, they aren't showing you the new elijah mccoy patent and trademark office, the very first and so far only satellite patent office in the country that was put in detroit, why? because michigan happens to be number one in new clean energy patents, new ideas on clean energy coming from detroit and the surrounding communities. they're not showing you tech town and the venture capitalists and the 17 tech start-ups who are investing in technologies that are being developed in detroit right now that

there are signs of a little bit of a renaissance in downtown detroit because, obviously, offices are see a few people, dan gilbert of quicken loans being the most notable, starting to move back into the center. so it's not without hope. but they are so far behind now in the process of adjusting their economy that i think it's going to require a lot more than what they can do on their own. >> you know, and what dan gilbert has done is impressive. and he has a ton of real estate down there. he owns quicken loans. moved their headquarters there. a lot of venture capitalist money. you compare it to the auto bailout. i think this is the key. if the government gets involved, not only will you need incredibly imaginative urban planning, but there shouldn't be any expectation that they're going to get a return on their investment like they're going to get their money back from gm or they made money off of some of the financial bailout. they won't be able to sell more cars or get more revenue. some of this money needs to be an investment that you forget about it. if there's political willingn

finally detroit, detroit is really a tale of two cities. in the downtown midtown of detroit you have unbelievable assets, architecture, and then there with government out of the picture networks and civic and business leaders philanthropy are helping the core of the city to revive as they struggle with their fiscal stress. we see leaders stepping up across sectors jurisdictions and part ideology to do what has to be done. >> michael: your book, bruce has a number of success stories and some of them you mentioned. but the dynamics between federal, state and local governments can be really tricky tricky. municipal bankruptcy is increasing, especially here in the state of california. how do they navigate that relationship. >> again, what metros need to do is come together as networks as we said before, but also ask of the federal government and the state governments what is absolutely necessary. there are some things particularly the federal government does that cities can't do. they can't secure our food. they can't strike their own trade deals with china. t

detroit. top of the line bicycles. hard to buy them, by the way. but i watched them being built downtown. we're making watches. great shinola detroit watches. you remember that super bowl game where chrysler said imported from detroit? remember that? kind of shocked people. well, people are getting over their shock. we're coming back as a manufacturing country and as a state and as a city we're coming back. the sburel spirit in detroit is amaze -- the sburel spirit in detroit is amazing. we have hundreds of young people that are involved in stuff i don't understand quite frankly. you know, creating apps for every damn thing in the world. hundreds of them. are you can't get -- you can't buy a condo in detroit. danny gilbert's turning these vacant buildings into condos. you can't even buy one they're so busy. that's the other half of detroit. so to answer your question, yeah, we spend a lot of time. part of it is trying to turn around the image of detroit to make sure people see the half i just described as well as the blighted half which is real. it's real. believe me. i know how real it is. i get carried away b

was it a little shady walking into the studio in downtown detroit?we hope you're safe. >> i'm fine. i think they stole my shoes in the car. yeah, no, they are gone. >> solace. get it right. thanks so much. >>> caught on camera, a terrifying moment the explosion rattles travelers in one of the world's busiest airports. >> was that a bomb? >> i don't think. >> details on who was behind that bombing and why straight ahead. >>> while you were sleeping, a huge announcement from hollywood. the summer superman movie is getting a sequel already. get this, starring batman. hey america, even though she doesn't need them, cheryl burke is cha-cha-ing in depend silhouette briefs for charity, to prove that with soft fabric and waistband, the best protection looks, fits, and feels just like underwear. get a free sample and try for yourself. my feet and exactly where i needed more support. i had tired, achy feet. until i got my number. my dr. scholl's custom fit orthotics number. now i'm a believer. you'll be a believer, too. learn where to find your number at drsch

downtown. ultimately we need to think about the long-term reinvention of detroit, michigan in terms of its effects on the majority of the population. >> beyond, that jared bernstein, what about the impact on the rest of the country? i ask this because you heard the governor say, look. there may be lessons in this for other cities. this sadly probably won't be the last city across america that will have to file for bankruptcy. but what is the big picture here? fit it into our overall economy and what this means, jared. >> sure. you have to realize that the extent of detroit's indebtedness, their liabilities say on the pension side go far beyond almost any other american city i can think of. so there is a way in which detroit is, unfortunately, unique, but fortunate in the sense that few other cities face that kind of debt burden. but i do think that creditors will be watching carefully to see just who gets a haircut. the unsecured creditors, i think, as we heard the emergency manager say, will get a big one. the secured creditors, those folks are going to watch very closely because that left fiewi

comes downtown funded portion and for detroit contribution, cases of mismanagement that went on for along period of time with respect to pension liabilities in detroit. >> now the city waits to see if a federal judge will accept the chapter 9 filing. meantime, a stay get issued against any lawsuits against the city. harris? >> boy, i will tell you, this is stuff if they are trying to retire those city employees those that happen to have a job. does this mean they won't get their pensions? >> no. the pensions still have value, but the amount of that value is still to be determined. the amount that they are underfunded could be as much as $3.5 billion according to the spokesman for the emergency manager. that spokesperson also stressed that key services like fire and police will continue despite the filing for bankruptcy. harris? >> harris: yeah. i mentioned it takes over an hour to get a police 911 call answered. scary stuff. mike tobin, thank you. meanwhile, companies are posting higher earnings. that news hit wall street today. fewer people are filing jobs claims for benefits. factor

detroit river. you have got downtown, great architecture. you go to the corner and then you've got midtown. you have weighed state university and detroit medical campus. you have got a lot of civic and local activists who have been working on this for the past 15 or 20 years and finally i think you're getting to a tipping point. private investment and philip round pick investment in northeast ohio is very smart and should teach it. $100 million to basically support economic revival. what happens? small batch manufacturing is coming to detroit. watches are being made in the shadow of integrative studies because they have the industrial engineers. there is a waste-to-energy center so they are fueling energy and to make town detroit. detroit will rise at its core and will rise as they did with your intervention, by bringing effectiveness and efficiency back to government. but it will primarily revive because private and civic -- >> bruce, this is and was the case here. you are trying to make these changes. it's not -- [inaudible] every inefficiency is a constituency. [laughter] >> that's my poi

detroit, top of the line bicycles. hard to buy 'em, by the way. but i watched them being built downtown. we're making watches, really great shinola detroit watches. the name detroit's right in there. you remember that super bowl game where chrysler said imported from detroit? remember that? kind of shocked people. well, people are getting over their shock. we're coming back as a manufacturing country and as a state and a as a city, we're coming back. the entrepreneurial spirit in detroit is amazing. we've got hundreds of young people that are involved in all kinds of stuff i don't even understand, frankly. you know, creating apps for every damn thing in the world just about. hundreds of them. you can't get, you can't buy a condo in detroit. danny gilbert's turning these vacant buildings into condos. you can't even buy one, they're so busy. that's the other half of detroit. so to answer your question, yeah, we spend a lot of time. part of it is trying to turn around the image of detroit to make sure people see the half i just described as well as the blighted half which is real. it's real,

i mean, if you come to detroit, and i invite the you you to do downtown we're 97% leased. we have a number of great institution and patron and matrons that support the city. our foundation community has been strong in the city. so i feel very strongly and have a great deal of affinity for detroit. the thing we have to get away from is the crushing debt. and there are enough books and reports and analysis about what bro brought decision to the decision and some of the corruption that it had to deal with. but i'm looking for a path so it can continue to get back to the great city that it still is and thrive. >> let me ask one more and i'll let you go. last evening we had a discussion about unsecured lenders, municipal bond holders, which i favor by the way. they should be unsecured in a situation like this. but the argument was that you tried to make a deal for 10 or 20 cents on the dollar for the bond holders, for the pension holders. did anybody take that deal, did anybody say let's step up to the plate and help detroit, you can give a kudo to anybody? >> well, let me say

detroit? this is motor city. >> the auto industry continues to have much of its white collar work in the city. general motors is headquartered downtownltimately the auto industry is not going to be the savior of detroit. yes, it should invest more in plant and infrastructure in the city. and maybe it will. because the jefferson avenue plant is very profitable right now. in the end, the solution is going to have to be bigger than reindustrialization, which is not likely to happen in the near future. >> we are both lovers of the great city of detroit. i thank you for your perspective of what they might do going forward. thank you so much for your time today. >> thank you. >>> parasailing, post-its and a justin bieber concert. the 13-year-old youtube makeup star died last week after a six-year battle with cancer. but her fans are carrying out her last wishes. her family posted the 74 item bucket list on talia's facebook page that is garnered already more than half million likes. fans are posting photos of themselves filling her dreams, getting a tattoo, and going diving. and keeping with talia's motto, just keep swimming. soft would be

detroit. what an amazing way to draw them downtown.saying, hey, that's a great idea as they sit on the outside, what a wonderful way to have them take action and get in the city, let alone the businesses that might draw from the outside. it's a very trerrific and aggressive idea. >> it's a win-win. i'm told we have bill on the phone. of course i know your dad. talk to me about this blight effort. we were talking earlier with bob marsh. you have the whole city bankruptcy. you have a tremendous crime problem, you have the tax problems, among the highest of any city in the country. but you also have this blight problem which you are trying to tackle i take it. can you tell us more about that? >> my grandfather helped found america's largest home builder in detroit at the age of 18. we're taking that massive scale model to the 139 square miles of detroit affected by blight. >> now, i ask you the same question i asked bob marsh. who supplies -- where does the capital come from? how do you attract investment? >> they asked for $2.5 billion a