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One key issue here is that that your turn around is only as good as the financial manager. Yet, currently this is what Michigan needs. Detroit desperately needs an effective financial manager. However, in time, I could see this law becoming problematic. It could be used in ideological and abusive ways.
But I agree with b_b that at some point this is the perrogative of the State. Michigan depends on a Detroit being functional, and it is far from it. The State has to be able to step in and clean up. Detroit government is ridiculously corrupt and inept. It needs a dictator for a while.