Detroit 'Openly and Notoriously' Drove into Bankruptcy

Detroit 'Openly and Notoriously' Drove into Bankruptcy [Mackinac Center]:
.....It’s a tough sell for reasons Orr himself expressed with regard to a group that is getting no love from current policymakers — those who lent money to the city and would like to get repaid.

Here is how hecharacterized the actions of some of these lenders:
If you lent money to an insolvent city that has been going insolvent as openly and notoriously [emphasis added] as possible since 2000, and you don't have as security interest, then you are an unsecured creditor.

In other words, Orr contends the city's fiscal malpractice was so flagrant that these lenders knew or should have known trouble was coming, and so today have little ground to complain about proposals to give them disproportionately large financial "haircuts" compared to others.

But hang on, there's a big contradiction in this.
The lenders weren't the only ones who "knew or should have known." 
Both city and state officials were well aware of Detroit's looming fiscal problems, and in general they chose a business-as-usual approach to its "open and notorious" mismanagement, spending and debt.
For years, they themselves ignored countless warnings about the city's growing financial house of cards.