Reminds me of the 1970s, when NYC was supposedly on the edge of bankruptcy for about the whole decade.  Then during the 2008 Financial Crisis it was Harrisburg and a few other cities supposedly going to default on their bonds.  Yet somehow, the TBTF banks and Da Goobermint always manage to restructure the debt in some way so BAU goes on and you don't hear about it again for another decade or two.  Same shit happens with Sovereign debt and the IMF.  Remember Greece and Argentina?  Everybody's in a big tizzy, the world's on fire, the sky will fall but then magically after months of secret negotiations in Basel, Switzerland or on Jekyll Island or on Jamie Dimon's yacht in International Waters the Smartest Guys in the Room get it all worked out.  $100B in debt seems to just disappear.  Some shit gets privatized, public employees take a salary cut, some pensions disappear, loans are rolled over for a longer term, lawyers and accountants are paid a shit load of money, a few dozen high priced hookers get a windfall and the Muni or 3rd World debtor country is once again given the green light to issue new 30 year bonds underwritten by Goldman or JP Morgan Chase and the problem disappears for another generation or so.  The problems always seem to arise when there is some kind of deeper problem with the financial system happening, and these debtors are the Canary in the Coal Mine.  What's the deeper problem this time?

It's the persistently high inflation Da Fed has not been able to tame with higher interest rates, and despite promises of rate cuts, mortgages are back over 7% and USTs selling at over 5%.  Banksters are starved of the Free Money they love to gamble with and the stock prices for companies with absurd P/E ratios start to look increasingly suspicious and ugly.  This is a strong leading indicator that we are on the verge of another melt down, which last year I said looked likely for the 2nd or 3rd quarter of this year.  We're in the beginning of quarter 2 now, so we'll get to see if I called it right this time or I get a low grade in my ECONostradamus 101 class this semester. 3rd quarter ends Oct 1st, so it's crunch time now.

https://www.cnbc.com/2024/04/25/many-large-us-cities-are-in-deep-financial-trouble-heres-why.html

Many large U.S. cities are in deep financial trouble. Here's why

RE