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Planet Money
Planet Money

The year NYC went broke

Oct 15, 2025 · 31m
AI Summary
  • New York City ran out of money in 1975 after a decade of debt accumulation to fund city employees and social services, nearly facing bankruptcy
  • President Gerald Ford opposed a bailout (prompting 'Drop Dead' headline), requiring cooperation from state government, banks, unions, and property owners
  • Investment banker Felix Rohatyn led a group of private citizens deputized to negotiate a grand bargain that saved the city's finances

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