"THERE is probably no city that is more financially challenged in the entire United States." So says Rick Snyder, the Republican governor of Michigan, in reference to Detroit. Today Mr Snyder announced plans to have an emergency manager take over the city.

Detroit can appeal, but on March 12th the governor is likely to appoint a new boss who will supersede the city’s elected officials (their authority will be suspended). He will have the power to cut spending, alter labour contracts and sell city assets. This is nothing new for Michigan—five cities are already under state oversight. Detroit, though, would be the largest.

In his announcement Mr Snyder called for unity, but even before he spoke the city council said it would fight the decision. Legal challenges are likely. John Pottow, a law professor at the University of Michigan, predicts a "shit storm of litigation" if a manager is appointed.

Delaying the city's restructuring will only cause more pain. The city’s financials are morbidly compelling reading. Its general fund has not been in the black at the end of a fiscal year since 2004. The city relies on debt to pay for day-to-day operations. Without those loans, Detroit's deficit would have been almost $1 billion in 2012. Long-term liabilities add up to around $14 billion. (See our report for more dreary details.)