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Why Detroit’s Bankruptcy Means a Higher Stock Market

By now I’m sure you’ve heard the news that Detroit has filed for bankruptcy. Many have speculated whether or not it was the right move to make or not, but the reality is that Detroit did file. I’d point out that Detroit was not the first municipality to file for bankruptcy court protection. Since January 2010, there have been 35 others. That’s a relatively high number over the last few years. While it pales in comparison to the 41,008 businesses that filed bankruptcy in 2012, the fallout of those municipal bankruptcies is good news for the stock market.

Sound a little counter intuitive to you?

Let me explain my reasoning.

To read the rest of this article, click here.

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Why Detroit??s Bankruptcy Means a Higher Stock Market

By now I??m sure you??ve heard the news that Detroit has filed for bankruptcy. Many have speculated whether or not it was the right move to make or not, but the reality is that Detroit did file. I??d point out that Detroit was not the first municipality to file for bankruptcy court protection. Since January 2010, there have been 35 others. That??s a relatively high number over the last few years. While it pales in comparison to the 41,008 businesses that filed bankruptcy in 2012, the fallout of those municipal bankruptcies is good news for the stock market.

Sound a little counter intuitive to you?

Let me explain my reasoning.

To read the rest of this article, click here.

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Chris Versace is a financial columnist and equity analyst with more than 18 years of experience in the investment industry. He has been ranked an All Star Analyst by Zacks Investment Research and his efforts in analyzing industries, companies and equity securities have been recognized by both Institutional Investor and Thomson Reuters?? StarMine Monitor. He??s frequently published in The Washington Times and is a frequent contributor to the daily radio show ??America??s Morning News? and ??America??s Radio News?. He has been quoted in the Wall Street Journal, Investor??s Business Daily, The Street, USA Today and other publications. In addition, he can be frequently seen on television??s ??Fox Business? show.

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