Be sure to read this entire Bloomberg story on $250m. worth of Detroit debt that is being back-stopped by the state of Michigan.
But my takeaway is that the city is paying over double — 7.56 percent to be exact — the going 3.5 percent rate on quality muni debt. This did not happen overnight. It started with some local pols deciding that paying a little more in order to issue more debt to build and do things they wanted to do was just fine.
Hint. Hint.
