T We can all learn from Detroit's fall from grace Dollars & Sense Peter Watson Guest Contributor 9 | Thursday, August 1, 2013 | OAKVILLE BEAVER | www.insideHALTON.com he once proud city of Detroit, which was affectionately known as Motor City, has run out of gas. In July, Detroit was the largest public institution in the U.S. to ever le for bankruptcy. This has signi cant implications for both Americans and Canadians. Detroit was a force during much of the last century. It was considered home to the American auto industry. Referred to as Motown, it produced an entire generation of musicians, including Stevie Wonder. By 1950, its population had grown to almost two million. But as the saying goes, "good things do not last forever." That applies to the good fortunes of this iconic U.S. city neighbouring Windsor. There are many lessons to be learned from Detroit's fall from grace. They apply to everything and everyone. Sometimes good things just go wrong. We all should be thankful for whatever level of prosperity we enjoy. Count our blessings today but be realistic and plan ahead in case that prosperity vanishes. The population of Detroit has declined to just more than 700,000. This includes a 25 per cent decline CorreCtion notiCe: since the year 2000. It now RBC advertisement from has fewer citizens than it did July 25th, 2013. in 1910. This now The RBC advertisement that small city still published in the July 25th has big city edition of this newspaper nancial obligacontained the incorrect tions. branch location information. Their legacy costs are 38 per cent and it is that nancial gravity that pulled the once Please find the correct branch location information in today's issue. proud city under. The rst 38 per cent of the city's tax revenue was being spent on retired city employee pensions and the interest costs of its $18 billion debt -- city services had declined. The Governor of Michigan said the wait time for a police of cer's response to a call is close to one hour where the national av- erage is 11 minutes. The bankruptcy strategy is to eliminate much of the nancial overhead so the city can stop their 60-year decline and return to prosperity. This is where we see rsthand who will suffer from the bankruptcy and realize this could happen to us. The city wants to cut debt payments to 17 per cent of its current levels. see Local on p.15 Old Oakville Market Downtown Guelph | Uptown Waterloo www.knar.com GRANDOPENING OPENING 95" Leather Sofa Knar-Transcend-5.145x3.714.indd 1 7/29/13 11:26 AM CELEBRATION In Pickering on July 26th All Stores are Joining the Celebrations! $ HOT 99 5 Piece Living Room Includes Sofa, Loveseat, Cocktail Table & 2 End Tables $ 429795 HOT King Panel Bed Includes Headboard, Footboard & Rails HOT 5 Piece Bedroom Includes King Bed, Dresser & Mirror King Storage Sleigh Bed Includes Headboard, Footboard & Rails 5 Piece Bedroom $ 727 97 $ 95 Includes King Bed, Dresser & Mirror $ 97 $ 95 $ Mississauga Stoney Creek Shopping Spree Woodbridge 5000 enter to win 24 EQUAL MONTHLY PAYMENTS NO INTEREST* 5 Piece Dining Room Includes 70" to 88" rectangular extension table and 4 chairs. $ 95 Opening July 26th Monday to Friday 10am to 9pm Saturday 10am to 6pm Sunday Noon to 5pm Find us on Facebook 4561 Hurontario St, Unit #2 South East Corner of Hwy #10 & Eglinton Monday to Friday 10am to 9pm Saturday 10am to 6pm Sunday Noon to 5pm 410 Lewis Road and the South Service Rd Located in Stoney Creek Decor Centre next to Stoney Creek Furniture Monday to Friday 10am to 9pm Saturday 10am to 5:30pm Sunday Noon to 5pm 7979 Weston Rd Located North of Hwy 7 Monday to Friday 10am to 9pm Saturday 10am to 6pm Sunday Noon to 5pm www.ashleyfurniturehomestore.com *On approved credit. Minimum purchase $1599. $99.99 Administration Fee. A $21 annual membership fee may be charged to your Account subject to certain conditions. Financing provided by CitiFinancial Canada, Inc. and is subject to all the terms and conditions in your cardholder agreement and the credit promotional plan disclosure statement (collectively the "Account Agreement"). The purchase price is divided by the number of months in the credit promotional period to determine equal monthly payments to be made during the credit promotional period. Finance Charges will not accrue on the purchase during the credit promotional period of 24 months if the required minimum payment is made each billing cycle during the credit promotional period when due. The terms of the credit promotional plan will terminate if you default under your Account Agreement. On termination or expiry of the credit promotional plan (or for purchases that are not part of the credit promotional plan), the standard APR of 29.99% and the terms of the regular credit plan will apply to all outstanding balances owing. This offer is valid up to and including 08/19/2013, cannot be used for previous purchases and cannot be combined with any other offers, promotions or special incentive programs. Certain terms and conditions apply. See store and Account Agreement for further information. Previous purchases excluded. Cannot be combined with any other promotion or discount. Discount offers exclude Sealy, Serta,