We have heard individuals and institutions filing bankruptcy. But on 18th July one of the big cities in US, Detroit, famous for its auto industry, has filed bankruptcy. Detroit became the biggest US city to file thus.

It is stated that this once populous city and centre of automobile production, was ravaged by recession and hollowed out by a long, slow decline in population and auto manufacturing.

The declaration of bankruptcy will mean reduction or complete stoppage of pension, job loss, austerity measures and so on. Already many people have left the city and the process will continue. It is reported that certain small cities in US had similarly become bankrupt earlier.

Capitalism can not even maintain the cities from collapsing. How can it save the world?