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Originally published 07/22/2013
Detroit files bankruptcy (2013), Michigan defaults (1842)
The massive bankruptcy of Detroit last week could put bondholders in jeopardy of not getting all their money back.It isn’t the first time that the holders of bonds issued in Michigan have had problems: Something similar happened 170 years ago.In the aftermath of the real-estate bubble of the mid-1830s and the bust that followed, Michigan became one of nine states to repudiate at least part of their debts....
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