From The Onion: Detroit Sold For Scrap :

‘Detroit, a former industrial metropolis in southeastern Michigan with a population of just under 1 million, was sold at auction Tuesday to bulk scrap dealers and smelting foundries across the United States. “This is what’s best for Detroit,” Mayor Kwame M. Kilpatrick said. “We must act now, while we can still get a little something for it.” Once dismantled and processed, Detroit is expected to yield nearly 14 million tons of steel, 2.85 million tons of aluminum, and approximately 837,000 tons of copper.

Update, 9.4.2006
Three stories to report on Detroit:
Left I on the News reports Detroit says “No” to U.S. policy towards Cuba:
”Last week, the Detroit City Council, taking note of how the U.S. treament of the Cuban Five ‘exposes the hypocrisy of America’s claim to oppose terrorism,’ passed a resolution calling for immediate freedom for the Five, an end to the blockade of Cuba, the restoration of the right of U.S. citizens to freely travel to Cuba, and the extradition of Luis Posada Carriles to Venezuela to stand trial for the murder of 73 people.”

The Economist has a piece on growing fears of General Motors going bust, Last Tango in Detroit?, while the New York Times reports Bankruptcy Not an Option for Ford.