Replies

Folks, who will be the losers and winners in a NYC bankruptcy. It has been 40 years one has happened. Anyone remember the details?

I don’t know about winners and losers, but ultimately NYC didn’t go into bankruptcy. They basically strong armed the teacher’s union to bail them out by buying bonds (which they had previously, and sensibly, refused to do). Gerald Ford publicly told them to pound sand and said he would veto any federal bailout, but then later caved and ended up approving a massive federal loan (but not soon enough to avoid pissing off the city’s voters and motivate them all to vote for Carter).

Ultimately, NYC elected Ed Koch—the last sane Democrat politician in American history—who put their fiscal house in order. They ultimately paid off all the debt.