SCOTT SIMON, BYLINE: The city of Detroit is approaching its own fiscal precipice. The city is deeply in debt and could run out of cash by the end of this month. That would mean more layoffs from a city workforce that's already been cut so much that a reported two-thirds of the city's streetlights do not work. The amount of empty, abandoned land in the city, which produces no tax revenue, is estimated to be as large as the entire city of Paris.
U.S. households owe a bit less than they did at the peak of the bubble. But they still owe a lot: $11.4 trillion, give or take a few billion. Mortgage and home-equity debt is still by far the biggest chunk of that debt.