... but only because it's run out of money.
MSNBC has a bunch of nincompoops on TV. They frequently say ridiculous things, but in one instance they're getting it sort of right. Detroit is indeed going (sort of*) libertarian. The government bankruptcy is causing a massive reduction in services and spending. Socialism and insolvency naturally lead to this.
Unfortunately, they've got a population raised on socialist expectations. The citizens of Detroit have some catching up to do. It's not whether their spending profile is libertarian, it's whether they are libertarian. I suppose that in some ways, an area that's been wiped out by a hurricane could be said to be libertarian in the sense that MSNBC is using the phrase.
* - They are still getting truckloads of Federal money, so don't get carried away with this whole libertarian line.