Wednesday, July 24, 2013

Bankruptcy Up Closer

I’d like to draw attention to a post on Market Size Blog, maintained by Editorial Code and Data, Inc. Here is the link. It shows what happens to housing prices when a rather monumental shift in population takes place—as it has taken place in Detroit. In a recent op ed column (NYT, July 22), “Detroit, the New Greece,” Paul Krugman examines that comparison and comes to the conclusion that the two are not comparable—although they are likely to be linked. The referenced blog post shows at least one of the reasons for the Detroit bankruptcy: a vast population exodus. The city had 1.029 million people in 1990, 701,500 in 2012.

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