detroit files for bankruptcy

http://finance.yahoo.com/news/detroit-emergency-manager-files-bankruptcy-201454103.html

what effect, if any, will this have on the market. interest rates go up? stocks go down?

 

5 minutes after detroit files for bankruptcy. moody's upgrades US credit rating..

 

It won't affect the markets since it was half expected anyway.
Already priced into the market.

 

Honestly, these events are usually positive. The markets like resolution and can't stand uncertainty. Bankruptcies create a certainty which are bullish. The only bear item is if the market believes there are more but isn't sure where they are yet.

 

http://www.nytimes.com/slideshow/2013/04/14/business/14gilbert-ss.html

 

Of course there are more. Right now the market is going up on ANY news. This will change.