"The low end of the market is a gold-mine, not a ghost town, if your vantage point is Delhi instead of Detroit", say V.Govindarajan and Chris Trimble in their best-selling book "Reverse Innovation: Create far from home, Win everywhere". This prophetic observation stares us in the face as Detroit files for bankruptcy.
Municipalities going broke is not a big deal. But a motown with an impressive heritage is an odd candidate for Chapter 9 bankruptcy. What will happen to the pensions of ex-municipal employees? Debts in the range of $17 billion for a population of around 700,000 are a big burden. We may wait and see if there is a ripple effect tempting some more municipalities to seek insolvency protection. Times are dangerously uncertain.
It is a sobering thought that America is solvent only because its foreign commitments arising from imports and other transactions are met by printing more dollars which surprisingly are lapped up by rest of the world. The day the dollar bluff is called, America will become one big Detroit. Till then, Dollar is king and in America, we trust.
Municipalities going broke is not a big deal. But a motown with an impressive heritage is an odd candidate for Chapter 9 bankruptcy. What will happen to the pensions of ex-municipal employees? Debts in the range of $17 billion for a population of around 700,000 are a big burden. We may wait and see if there is a ripple effect tempting some more municipalities to seek insolvency protection. Times are dangerously uncertain.
It is a sobering thought that America is solvent only because its foreign commitments arising from imports and other transactions are met by printing more dollars which surprisingly are lapped up by rest of the world. The day the dollar bluff is called, America will become one big Detroit. Till then, Dollar is king and in America, we trust.
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