As a practical matter, for the next year or two, Detroit will be run by Kevyn Orr and a U.S. bankruptcy judge. After the bankruptcy, the governor might keep an emergency manager around, otherwise, the mayor and council will retake the reigns. But they'll be bound by: 1) the political fallout of the bankruptcy (it will be painful for everyone involved); 2) agreements entered into as part of the bankruptcy; and 3) more skeptical creditors going forward. Significantly, I think the bankruptcy is going to greatly reduce the power and influence of the public unions, as the emergency manager and the bankruptcy court spend a year or two restructuring things while going over their heads.

There's a great article on this: http://www.freep.com/article/20130603/NEWS01/306030014/City-....