LATEST NEWS: Richard Ravitch: Expect a Tsunami of Municipal Bankruptcies

Rising pension-fund and health-care costs are putting enormous pressure on state and local governments, Richard Ravitch, who is advising Detroit’s bankruptcy judge, tells CNBC. Plus, the federal government, attempting balance its own budget, has cut its funding to cities. Politicians prefer not to raise taxes or cut services, so have repeatedly issued bonds to borrow, kicking the […]

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Brodsky: N.Y.'s prospect of bankruptcy

“New York’s political class has been wrestling with what to do since Detroit filed for federal bankruptcy protection. Finger-pointing and more debt have been the response. The higher you go in the hierarchy, the easier it is to see the fear and denial. The problem, it is said, is the result of local mismanagement and overspending. […]

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