america's motor city runs out of gas. >> john: whoa, whoa, whoa, does that tone seem appropriate to anyone? a major american city has declared bankruptcy with devastating human costs. maybe pump the brakes on the car a little bit. if chicago went bankrupt, would you say the windy city just left out its final fart? no, you wouldn't. if houston had a devastating earthquake would you start by saying, "houston, we have a problem." the problem is your buildings are collapsing and there are hundreds of people trapped under the rubble. no, this is no place for jokes and puns apart from this one. that's top notch. this is our job. just the one bright side is that detroit might get a little economic boost from all those reporters flocking to it to cover the story, right? >> mike tobin live in chicago with the news. mike, a dramatic afternoon in detroit. >> whether that's chap term 9 how they go to the motions i don't know but jeff lock does. he's right near detroit in chicago. >> john: really? chicago. so you have reporters take gun fire in war zones all over the world. you've had them gear gassed

s detroit mi the motor city is after is eighty five percent african-american in fact it has the highest black population percentage wise of any major city in the united states so when republican pundits and politicians talk about mismanagement and bad governance what they're often actually saying is that black people aren't capable of running a city detroit native and far right talk show host ted nugent went so far as to compare the city government of detroit to robert mugabe zimbabwe in an interview with t m z over the weekend he said liberal democrats took hold of the greatest most productive city on earth and turned into a blood suck sucker excuse making hell liberals seem to think that what mugabe did to destroy the breadbasket of africa and zimbabwe is somehow a desirable model of. blaming minorities for social problems problems is a tried and true republican tactic reagan had his welfare. queens and he went after labor the air traffic controllers the modern g.o.p. has detroit however it wasn't unions or black people who bankrupted detroit it was decades of pro corporate anti a mid

. >>> we turn next to a big headline tonight out of america's iconic motor city, detroit, waving the white flag, the city filing for bankruptcy. what does this mean for detroit and the country. abc's senior national correspondent jim avila has the latest. >> reporter: once america's fourth largest city, detroit now a stunning $18 billion in debt. clinging to its reputation as the world's motor city, producing detroit iron sold by homegrown stars like eminem. >> this is the motor city and this is what we do. >> reporter: clint eastwood embodying the don't give up, spirit of detroit with his iconic commercial, reminding americans watching the superbowl of the city's latest come back. >> the world is going to hear the roar of our engines. it's halftime, america, and our second half is about to begin. ♪ whenever i'm with him >> reporter: and the motown glory years of fast cars and soul music are long gone. now the homicide rate at its highest in 40 years. dubbed murder city with 78,000 abandoned buildings, 63% of its population gone. so empty the city of paris could fit inside the vacant

can the nation's motor city survive chapter 9 bankruptcy?or rick scott standing behind his state's stand your ground law, despite the growing number of protesters camped outside his office. will rallies and ridgvigils imp the debate over gun control and race. >>> a bombshell, a key witness found dead in the bulger trial. officials say it looks fishy. was he murdered to force his silence in the trial? that ahead in a few minutes. [ male announcer ] it's 7am and steve is already thinking about tomorrow. which is why he's investing in his heart health by eating kellogg's raisin bran®. good morning dad. hi, sweetie. [ male announcer ] here's another eye opener. not only is kellogg's raisin bran® heart healthy it's a delicious source of potassium. ♪ mom make you eat that? i happen to like raisins. now that's what i'm talkin' about. [ male announcer ] invest in your heart health with kellogg's raisin bran®. diarrhea, gas, bloating? yes! one phillips' colon health probiotic cap each day helps defend against these digestive issues... with three stra

. >> the motor city filed for bankruptcy. australia decides to send all refugees are arriving by boat to new guinea. mongolia hails the dawn of the new super grid. tens of thousands of people in egypt are expected to rally in the coming hours to call for the reinstatement of mohamed morsi. it is three weeks since the former president was removed by the military. there seems to be no sign of his supporters backing down. people are gathering across the capital. at least 15 separate protests are being held at separate locations. holdingesters have been a sit in. other locations are hosting protests. there were also be a protest south of cairo. also be a protest south of cairo. what is the ultimate aim and how big our protests expected to be? >> they are hoping there will be a huge box show of support on the pro-morsi side. they're gathering across cairo and across the company. there will be various marches taking place. focal points in ,airo for the pro-morsi camp nassar city.and you also have protests being called for by the an

and labor leaders cry foul after the motor city files for bankruptcy. does detroit deserve a bailout? could your city be next? >> paul: welcome to the journal editorial report. i'm paul gigot. good news from the big apple, murders are down 30% from all-time low. fewest shootings in two decades. despite the progress, new york city police department has come under fire for stop question and frisk policy which opponents say is tantamount to racial profiling. last month they passed two bills that could restrain the controversial program. my guest says this week will be a set back for the city. ray kelly, new york city police commissioner. tell us how stop, question and frisk works and why you do it? >> it's a practice that is integral to policing in america. police officers are authorized by statute and also validated by supreme court decision in 1968. they are authorized to stop and question someone who is a reasonably believed has committed is committing or is about to commit a crime. it is fundamental to policing that officers are given the right to inqui

david: the motor city is not very hav happy, it has gone bus. led for chapter 9 bankruptcy, the largest such filing in history for a municipality. cheryl: the city is facing $18 billion in debt in unfunded liability, so what is next for the biggest cities in this country? jeff flock is in detroit with the very latest. jeff. jeff: i spent the day with the experts of emergency management director, the governor, i just wanted to show you what the city really looks like. buildings like this, the filing had addresses, this was supposed to be demolished but they don't have the money to do it. this is the fire hydrant. you wonder why people two things burn, not a lot coming out of that one. can you tell in parts of the city there is a sidewalk there? row after row of homes being swallowed up essentially by nature. this is what a lot of detroit looks like. the emergency manager kevin orr told me today one of the things he is shocked about is how long this has gone on and for how many years this has been tolerated. >> what shocked me was the tolerance for

town, to use a phrase, is no town. >> america's motor city runs out of gas. >> whoa, whoa, whoa. does that tone seem appropriate to anyone? a major american city has declared bankruptcy with devastating human costs. maybe pump the brakes on the pun mobile a little bit. because if chicago went bankrupt, would you say, oh, the windy city just let out its final fart? no, no, you wouldn't. if houston had a devastating earthquake, would you start the story with, houston, we have a problem? of the problem is your buildings are collapsing and there are hundreds of people trapped under the rubble. no. this is no place for jokes and puns, apart from this one. because that's topnotch. that's why. and this is our job. ♪ pnc virtual wallet®. for seeing the big financial picture. for knowing the days your money is going out, and when it's coming in. for having danger days, to warn you when you're running a little low. for help seeing your money in a whole new light go to pncvirtualwallet.com and see everything pnc virtual wallet® has to offer. pnc bank. for the achiever in you®. >>> the leader

michigan as they battle to rescue the young and the lost caught in the grip of sex slavery in the motor city. >>> detroit, michigan, once the very hub of american industrial might, the city's economic collapse is staggering. today with unemployment hovering near 20%, motown is a tough place to find a job. that is, unless you happen to be dealing in one of the few lines of merchandise that still pays around here. the buying and selling of sex for cash. >> we actually have a number of partners that are in the task force. >> special agent michael glennen heads up the fbi's human trafficking task force in michigan. >> why the need for a task force when it comes to this issue of sex trafficking? >> in detroit, a lot of people don't realize that we're kind of a hub of both recruitment as well as what they call a destination city and a recruitment city. it's kind of the end of the i-75 corridor. there's a lot of truck traffic, a lot of components that make it a very popular area for trafficking unfortunately. >> today the task force has invited us to ride along for a first hand look at their effort

labor leaders cry foul after the motor city file for bankruptcy. does detroit deserve a bailout? could your city be next? welcome to "the journal editorial report." i'm paul gigot. good news from the big apple where so far in 2013 murders are down almost 30% from last year's all-time low. the city has seen its tiest shootings in two decades. despite the progress, new york city police department has come under fire for its stop, question and frisk poll schi opponents say it is tantamount to racial profiling. last month the city council passed two bills that could restrain the controversial program. my guest this week says will be a setback for the city. new york police commissioner ray kelly here. thank you for being here. >> good morning. good to be with you. >> tell us how stop, question and frisk works in practice and why you do it. >> it is a practice that is integral to policing throughout america and indeed throughout the world. police off verse authorized by statute and also validated by a supreme court decision terry versus ohio in 1968. they are authorized to stop and ques

now just seven months later, the motor city is filing for bankruptcy protection. ssarily a surprise, but how did we get to this point? mark ash is a former adviser to the city of detroit focusing specifically on public transportation. but, mark, you go into cities and try to teach them how to run like a company, how to better manage their finances and their budgets. what was it like, what was your time in detroit like? you were there for a year. >> you know, a lot of people would say it's not possible. we can run a public transportation system in new york for years where we cut fares, reduced reliance on taxpayer dollars, so people say can you take that to a place like detroit, the most challenged community in the country, and make it better? when we worked with major bing and his team, in one year we safed $39 million and improved customer satisfaction by 44%. so it shows just in one year with one agency how much better you can make it. but the city's so big, and the problems are so massive we wind up where we are today. jenna: what was key to you getting to a sur

the fall out of the motor city was fuelled by similar crisis we see in larger cash-strapped cities across the country. their book, with bills going unpaid, as pension obligations and debt grow. detroit is not alone in its money mess. one city to watch, another in the midwest, chicago, a steep credit rating agencies, moody's, cut the rating for the windy city by three notches. chicago has $36 billion deficit in just its pension fund. detroit's bankruptcy should be no surprise. it has been smoldering for decades as the auto industry was forced it change. pensions negotiated years before in its hay day could not be sustained and people drove right out of the motor city. slashing a tax revenue that would be accelerating. not surprising if other cities follow in its foot steps. especially in a bailout followes this bankruptcy. harris, back to you. >> brenda, thank you. >>> a lot going on in the uk with the royal baby bump watch and headline from the british open. and american won it today. phil mickelson, winning his first british open title. watching his drop, sealing his win in scotland. at

it is literally across the street from motor city. the county executive behind the jobs-creating juggernaut joins us. don't go anywer. more "money" coming up. ♪ ♪ melissa: i've been dieing to do this one all day. it is our "money" talker for you. when you sit around with you friends would you ever admit out loud or maybe in front of your spouse that you have the fal say when it come to spending money in your house? if you don't agree on a big purchase, say major home renovation, new car you would go out to buy it anyway? a new survey shows couples are totally outf zing when it comes to who is charge of the family purse strings. overvaluintheir own contribution or drastically undealuing their significant other's here to give as you reality check, fox family and "money" friends, charles payne, mercedes colwin. tony sayegh, who we love buu we couldn't fit you on the set. >> what i about that? cold in siberia. >> i know, i know. maybe i will let you go first. what i loved about this, is for example, when men were asked, are you the primar

mandy is back at cnbc hq, and we're live for you all day here in the motor city. not the reason we want to be here. as you heard, detroit filing for the largest municipal bankruptcy in u.s. history listing billions in debts and unfounded liabilities. it's now in the hands of the court and where it ends up there it's anybody's guess because the situation is far from clear. earlier today a judge said this is unconstitutional under the michigan state constitution. it will likely fall in a federal judge's hands. it's now up to the lawyers and people of detroit, the mayor and emergency council to try to get this sorted out. all hour long guests and insights from detroit and you've got to see it to believe it. >> let's not forget that detroit's bankruptcy has been decades in the making so let's take a look at the recent events that have led to what we're seeing right now. november of 2011, the mayor of detroit announces that the city could run out of cash by april. then we fast forward to march of 2012, mood esdowngraded and detroit has a $327 million deficit. the gover

." >>> the motor city stalled. detroit becomes the largest municipal bankruptcy filing in u.s. history. a one-time iconic city can no longer pay its debts. estimated at $18 billion. also this morning, a house call. the next few months will decide what the 2014 battle will be about. we'll talk to the point people on both sides about the race to frame the fight for control of congress. and from 2014 to 2016 the woman who might be speaker again makes her hopes very clear. she's all aboard the hillary clinton train this time around. by the way, on the republican side, guess who's in iowa today. >>> good morning from washington, it's friday, july 19. this "the daily rundown." let's get right to my first reads. we begin in detroit, michigan. at one time, the fourth most populated city in the country. and one of the wealthiest. it's now becoming the largest city in american history to file for bankruptcy. one hour from now, michigan governor rick schneider and detroit's emergency manager will hold a press conference to discuss the chapter 9 bang ruppcy filing. the city announced it can

>>> will the motor city roar again? it's friday, july 19th, and this is "now." >>> it is the end of an era for the motor city. after half a sent riff slow decline, detroit is broke. yesterday it became the largest city ever to file for bankruptcy with an estimated $18 billion in debt. the city owes money to over 100,000 creditors. >> currently those creditors have a situation where they don't know what they're going to get paid and if they'll get paid at all. going through this process will allow us to give them some certainty to say this is a debt that can and will be paid. >> with a chapter 9 now filed, the fate of the decaying metropolis will now be in the hands after federal judge. kevin orr says nothing will change in regard to city services and paybacks but one of the biggest and controversial issues to be worked out in court is the fate of benefits for nearly 10,000 city employees an pensions for 20,000 retirees. orr contends he recommended the chapter 9 filing for the safety and welfare of detroit's citizens. >>

. >>> the motor city running out of gas. detroit officially bankrupt today. is the largest municipal bankruptcy in the nation's history. tens of thousands of city workers and retirees could see cuts in their pension plans. here's how michigan governor rick snyder responded to some of those concerns. >> with respect to retirees, one of the important things is, it's been hard to figure out how to work with them, have them have a voice at the table because the unions don't represent all the retirees. one of the important things we proactively ask for in the bankruptcy filing is for the judge to appoint a representative for retirees. because i think it's critically important they have a seat at the table, they have a voice at the fabtable, that day can be heard. bankruptcy is a process that allows that to happen much better. >> worrying for those people. snyder says detroit residents, meanwhile, shouldn't see any immediate changes in city services which most the people in detroit think are lacking anyway. he says they might actually see some improvements going fo

it is literally across the street from motor city. the county executive behind the jobs-creating juggernaut joins us. don't go anywer. more "money" coming up. ♪ ♪ ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st. i've got a nice long life ahead. biplans. so when i found out mecare doesn't pay all my medical expenses, i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. it could save you thousands in out-of-pocket costs. call now to request your free decision guide. i've been with my doctor for 12 years. now i know i'll be able to stick with him. you'll be able to visit any doctor or hospital that accepts medi

vehicle that fueled our happy motoring paradise for decades unfortunately after years of decline the motor city finally filed for bankruptcy protection yesterday a move that was not entirely unexpected that's right eighteen billion dollars in liabilities there's at stake a record for the u.s. is this the first domino that might just go the narrative with these two thousand and eleven prediction of a wave of need defaults area and we'll dig into the fine print of detroit's bankruptcy filing later in the show it's a precedent setting a bend in more ways than one and speaking of insolvent we'd be remiss without mentioning the fed which is gamed its own accounting manual to make sure the big banks get paid ahead of the taxpayer a new york times article highlighted our recent guest steve and how bernanke got it oh so wrong and provide some choice coats quotes from a nobel prize winning economist in two thousand and three nobel laureates robert lucas jr actually said and macro economics has succeeded a central problem of depression prevention has been solved finally detroit might be in the sewer but

the vice president was asked earlier today what the administration can do to help the motor city.is how he answered that. >> can we help detroit? we are now going through exactly in detail what -- we had a meeting yesterday, just getting a brief on the status. the question is we don't know at this point. >> bill: will they do anything, julie? >> one thing that they're not going to do is do a massive bailout of detroit in the white house briefing today jay carney says they are looking at policy options to help the city. unclear what those are the hud secretary is going to be involved. i would not have anybody holding their breath for an abailout. >> bill: that would be an about face if they at this point on course. >> that was a classic answer that biden gave. he said essentially, we have no idea but it took him a paragraph. [ laughter ] >> he was part of the lightning round. >> exactly. you wouldn't have had him on a lightning round. >> i admired his candor he said they don't know. they don't know they are looking for answers now. >> bill: final topic, there was a shocking story t

the motor city and just became the largest bankruptcy in america on thursday july seventeenth detroit emergency city manager kevin or a filed for chapter nine bankruptcy after failing to reach agreements with bondholders in creditors mr or. told citizens yesterday the city services for now are unaffected police and fire departments will operate as usual. services will remain open paychecks will be made bills will be paid nothing changes from the standpoint of the ordinary citizens perspective. bankruptcy is a complicated process results depend on location and where proceedings occur so let's dig into the fine print of municipal bankruptcy and how detroit could be affected hearings for the city could take place in detroit kentucky ohio or tennessee the bankruptcy judge will be the one who determines first an automatic stay will be issued on the city's obligations to halt creditors from collecting debts this includes losses lawsuits against the city from pension officials and union members the automatic stay will allow the city time to renegotiate its contracts then the droid's will hav

the motor city. the capital of the u.s. auto industry. the city that gave us the motown sound. today, detroit has a more dubious distinction. it's the largest u.s. city ever to file bankruptcy. tens of thousands of current and former city workers are deeply worried right now their pensions will be slashed and that could set a precedent for other struggling cities across the united states. but michigan's governor who signed off on the bankruptcy filing says it's a chance to start turning detroit around. >> this is our opportunity to improve citizen services. they deserve a better answer than what they've gotten for decades, and with respect to retirees, clearly i empathize with their situation. many are on a fixed income. this needs to be done in a thoughtful way. let's stop and look at the situation. $18 billion in debt. the city is broke. if we weren't to take this action to stop and say, let's get things done in a thoughtful, well-organized fashion, the city would continue to go downhill. enough is enough about detroit going downhill. this has been going on for 60 years. it's

the motor city is now the broke city.etroit is the largest municipal bankruptcy in american history. detroit's finances had been in decline and unable to pay its bills. they left nearly 20 billion in debt owed to 1,000 creditors. he told us what went wrong on special report last night. take a listen. >> in detroit there was a lack of contribution there was multiple cases of mismanagement that went on for a long period of time with respect to pension liabilities in detroit. >> some credit tors were asked to take pension. they slunk from the peak of nearly 2 million 1950 to 700,000 today. the stays unp employment rate has nearly tripled since the year 2000 and it is more than double the national average. detroit's homicide rate is at the highest level in nearly 40 years. they have fwhanled one of the most dangerous cities in the u.s. for the past 20-years. detroiters wait almost an hour for police to respond compared to the national average of 11 minutes. 78,000 buildings abandoned. officials including the governor and kevi

neighborhoods hollowed out by a long slow decline in population and auto manufacturing and the motor city is bankruptcy battle is likely to be a long and painful one meanwhile a judge just said that detroit's filing it violates michigan's constitution a ruling that the michigan a.g. pledge to appeal joining me now to discuss is our team producer and detroit native america david and prime interest of bob english welcome guys thank you for being here today. here it's great to have you know first to america detroit has been on the brink of bankruptcy for some time now can you explain what brought to trade to you know being nearly twenty billion dollars in debt that's a lot of debt it is a lot of debt and it's frankly very sad you know it's something that i think a lot of people in detroit aren't incredibly surprised to hear the city has been in decline for many many years all of my life since i've been born at least. but it's been it's been hard to watch i think as an insider being from detroit and on the outside now living here in washington d.c. but i think what you're seeing really is jus

the motor city gets weighed down under a mountain of debt. detroit filing for theargest municipal bankruptcy in u.s. history. >>> hi, everybody. welcome to the program. we have got two hours together. finance ministers gathering now at the g-20 meeting in moscow and they're expected to ratchet up the crackdown on corporate tax avoidance. now, later today, the oecd will be unveiling an action plan aimed at tackling profit shifting, which has thrown some of the largest multinationals into the spotlight. let's get the details with julia chatterley from moscow with more. julia, a lot on the agenda and taxes definitely one of the issues they're going to be talking about by the looks of things. >> absolutely. huge agenda. growth, jobs and tax avoidance. as you said, the oecd just about to announce their proposals to targeting tax avoidance by the large corporations in the g-20. you cut to the heart of it when you said a profit shifting. ultimately at the heart of this is their proposal to make corporations pay tax in the jurisdiction where the valu

this is motor city. >> the auto industry continues to have much of its white collar work in the city.l motors is headquartered downtown. but ultimately 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

martha: the motor city was not always under water. icans wasy one in employed directly or indirectly by the automobile industry. and detroit was the he of all of that. by 1950 the city had become the largest city and it was home to 2 million people. bill: what do it mean for a city billions of dollars in debt? sir, good morning to you. what does happen now? what is the future that these people now face? >> it's great uncertainty. how do you go from the shiny city to really what it is today. this is a cautionary tale for everyone. the pain any city peels by pulling back and creating austerity measures will pale in comparison to the pain detroit is feeling now. this is going to happen all over the country, all over this youth. if people don't start taking the proper measures. one of the thing that caught my attention, they said that people are now blaming this bankruptcy on a lot of companies and a lot of individuals leaving the detroit area. the reason they left is because there was an anti-business climate in detroit that has been ther

we sent jesse waters out to the motor city to see just >>> and in the waters world segment, yesterdaythe largest city in u.s. history ever to declare bankruptcy. the motor city faced nearly $19 billion in debt and it's been piling up for years. has anyone liked the detroit of five years ago or ten years ago or 15 years ago? how long has this gone on and people have not stopped to say stop kicking the can down the road and do something. we are doing something. >> jesse waters recently talked to the people in detroit about how their city ended up in such dire straits. >> it's been a violent two weeks in detroit. 32 murders in 15 days. >> detroit is the poorest big city in america. 40% of the people here are on food stamps. the jobless rate is 11.3%. >> it's bad, it's bad. the crime, you can't get ems. let's just be real about it. we can put billions and billions of dollars overseas and rebuild people's economies but not put one quarter into our cities. >> there's five things that people want, a clean city, a safe city, a smart city, education, and also protection, police and fire. >> we

. >> kelly: motor city running on empty and serving as a warning to other cities teetering on the edge. how the bankruptcy is being felt nationwide. >> if anybody is think 40-year-old trees going through roofs of who houses? does anybody think they should call the police and not be able to come on time because they are already out on calls? no. all business purchases. so you can capture your receipts, and manage them online with jot, the latest app from ink. so you can spend less time doing paperwork. and more time doing paperwork. ink from cha. so you can. announcer: announcer: you're on the right track to save big during sleep train's triple choice sale. for a limited time, you can choose to save hundreds on beautyrest and posturepedic mattress sets. or choose $300 in free gifts with sleep train's most popular tempur-pedic mattresses. you can even choose 48 months interest-free financing on the new tempur-choice with head-to-toe customization. the triple choice sale ends soon at sleep train! ♪ sleep train ♪ your ticket to a better night's sleep ♪ >> kelly: quick check on the headline

the fight in motor city continues u.s. psie judge suspending litigation challenging that they could see petitioned. what is next? liz macdonald has been all over this. >> to be with you lawyers for the city came out victorious today to get u.s. bigger see judge to set aside all lawsuits that will block the bid grips the petition which could now be the biggest in u.s. history. of course, they had worked argued that it was violating the michigan state constitution so that it could cut benefits to save the city effaces $80 billion of debt which includes nine-point to billion dollars of city pension and health benefits now those guaranteed worker payouts will go away we the retirees in the same pool as numerous other creditors but today's hearing tripp -- attracted to get interest the people lining up to gain entrance as city firefighters protested outside. it was once the largest fourth largest city the population has shrunk almost two-thirds and has been depending on borrowing to stay afloat. back to you. tracy: this case wil

clinging to its reputation as the world motor city. producing eastern sold by homegrown stars like eminem. >> motor city. this is what we do. >>reporter: and clint eastwood embodying the don't give up spirit of detroit with his iconic commercial reminding americans watching the super bowl of the city latest come back. >> world will hear the roar of our engine. yes. it's half time america. our second half is about to begin. >>reporter: but the motown glory years of fast cars and soul music lon gone. now the homicide rate is at its highest in 40 years. dub murder city with 78,000 abandoned building buildings. 63 percent of its population gone. so empty the city of paris could fit inside the vacant space. and today the michigan governor announced the unavoidable bankruptcy. >> detroit is broke. >>reporter: detroit now hoping to start over. >> opportunity for fresh start. >>reporter: one of the ideas down sizing. >> we could become the greenest city in the country because of the land that we have. >>reporter: but first the bitter pill of b

that single event sealed the event of the motor city. over the next four decades the jobs fled to nonunion state and detroit's population imploded and the once vibrant economy is 18 billion in the hole and un. the sits at mind- blowing 16.9 percent. detroit is bankrupt and largest to go bankrupt in our history. that is what happens. >> sad story indeed and we are here to start solution. >> how can broke, broke detroit fix their mess and many other cities on the verge in america? >> they need to start by liquidating the public sector pengdzs. progressive policies as you point out 18 billion in liabilities. there needs two phases. liquidation phase and parasites and they suck it dry. it is dead. we need to liquidate the liabilities and privateitize the city. whether it is the art election or land itself it can thrive. >> i love that second one especially. detroit was built, the infrastructure for a 2 million population that was the peak in the 60s or so and now 700,000 people living there. >> michelle, you have solutions for bankrupt citie

motor city has that distinction of being the largest city to tumble into insolvency, conditions settinga news conference. poppy harlow took it all in. she joins us live. gives us the information you gleaned. >> i know you're going to have the governor of michigan on soon. but you know, he just basically said enough is enough. this is a city that's been in decline for more than six decades. we've see the population fall by more than 60%. that means -- so many fewer people tied with political corruption that the 18$18.5 billion in debt. that's where it got this city. he says everything has to be on the table. everything from selling assets of the city, there's a lot of controversy over what should be sold and what shouldn't, but also the real people impact. this is what's so important. the city workers, they will feel this the most. the uniformed officials, nonuniformed officials, thee going to take a hit in one way or another, about 30,000 people, retires and current workers. i talked today to a lot of them. some of them are suing, actually trying to block in. janet witzen and michael we

david: them -- the motor city has gone bust. the largest city to file for bankruptcy in u.s. this impact bondholders and the whole bond market? joining me now, larry mcdonald, director for new age u.s.a. and a former vice president at lehman brothers. good to see you again. just in general, the impact of detroit bankruptcy of the bond market? >> it is historical. behind the scenes you have tension -- pension and health care people with liabilities and bondholders in detroit. a big fight, and unfortunately the more the politicians get involved here, they steer bottlers around the country. in other words, bottlers around the country in other cities are worried about bondholders getting crammed down at the benefit. david: we certainly saw that happen with general motors when in fact the pensioners -- because they had so much political power. politicians were able to get the deals. they ended up pretty much unscathed. but this is a guy, beholden to no one. he is an independent. he is the manager for this whole debt procedure. will he have the final say in terms of who takes a hai

in detroit, $18 billion in debt is driving the motor city into bumps is washington watching? because the country is tackling the very same issue as the nation's debt races toward $17 trillion. cato institute says washington better wake up. >> we better wake

it today he came up with a grand idea for the motor city. >> one thing i'm proud of, we are partnering with the federal government, city and state working together is blight removal. we will start it implement a $100 million program to get rid of 78,000 blighted structures in detroit in the next 30 days. >> did he say a hundred million dollars to tear down the city? that's his idea of investment? rick snyder will not invest a dime to help the people of detroit. instead he want to spend money to destroy the city. this is the beginning of privatetization, my friend. calling local buddies when it comes to construction and have local bulldozers knock it down. he wants to destroy tradition and start over with privatization. i believe this state skexemplifs how great this country can be. when harry ford started the automobile industry, he made sure all of us workers made enough money so they could afford what the heck they were making. when we were attacked during world war ii, what did detroit do? they made a shift and make the arsenal of democracy. >> behind locked doors and almost 100 gen

. >>> it's saturday night in the motor city, and investigators with michigan's human trafficking taskorce are conducting undercover sting operations. >> where are your clothes at? >> tonight's arrest begin to provide us with a rare and unsettling look at the chronic drug problem that goes hand in hand with life in the underground sex trade. >> that's the most i have seen in forever. >> the unfortunate reality of it is that we arrest hundreds and hundreds of girls involved in prostitution. only a handful are not involved with a type of narcotic. as time goes on, these girls need that numbness or fix to continue to go on from the work their doing. >> in countless hotels and motels up and down the boulevards of motor city, the same scenario plays out tonight and every night. a young woman sits in dark drinking or shooting dope trying to forget the last john and waiting for the next one. >> he is rolling in right now. i see his brake lights. >> sometimes that next day is actually an undercover cop. >> 219. >> the woman in room 219 is no stronger to police. >> i don't approve of what you'r

motor city has made history for the wrong reason. emergency manager filed for chapter 9 protection. the city is $18 billion in debt. detroit has struggled as the auto industry declined and businesses went elsewhere. the mayor says the city is down, but not out. >> as tough as this is, i really didn't want to go in this direction. this is very difficult for all of us, but if it's going to make the citizens better off, then this is a new start for us. >> gretchen: general motors says it has no plans to leave the city of detroit. >>> we're going to learn later this morning how a chinese student on board flight 214 actually died. police and fire officials confirmed last week that 16-year-old girl was hit by a fire truck racing to try and put out the fire after that crash landing. but it's been unclear if that's actually what killed her. today the coroner's office will hold a news conference to announce the cause and manner of her death. two other teens traveling in her group were also killed. >>> president obama giving putin the cold sho

then america's motor city runs out of gas. detroit was once riding high as the car capital of the nation, the birthplace of motown. now -- >> from a financial point of view, let me be blunt, detroit is broke. >> we'll have a discussion with the city's emergency manager, kevyn orr. and the book that's keeping d.c. up at night. that's all right now on "fox news sunday." hello again from fox news in washington. one week after the acquittal in the george zimmerman case, thousands of protesters took to the streets in more than 100 cities saturday to demand justice for trayvon. there were no reports of violence or arrests. trayvon's father appeared at a rally in miami. his mother at one in new york. >> of course we're hurting. of course we're shocked and disappointed. but that just means that we have to roll up our sleeves and continue to fight. >> all this after president obama tried to explain friday why this case has been so painful to blacks. in his most extended discussion of race since entering the white house. joining us to c