July 19, 2013

If All You Have Is A Hammer ...

The state of Michigan has filed for the bankruptcy of the city of Detroit.

Some are saying they are "shocked! shocked!". The governor said this is the last thing he wanted, that he tried everything he could to avoid this.

Avoid it? Barely four month ago, this same governor was proud to announce that he had appointed a bankruptcy attorney to replace the elected officials of Detroit. This person then engaged his law firm -- which specializes in bankruptcies -- to work through Detroit's finances.

Lo and behold! These bankruptcy experts found that bankruptcy was the only solution.

How can this be a surprise?

If the governor had named a cleric to this position, wouldn't we expect the solution to be prayer? If a equity fund manager had been chosen, wouldn't we expect parts to be sold off to raise capital?

If all you have is a hammer, everything looks like a nail.