When NY Was On The Brink Of Bankruptcy!
I just stumbled on this bit of news and it was so interesting, I just had to share it with you guys. Did you know that New York City came REALLY close to bankruptcy just a little over 30 years ago? Sounds phenomenal doesn’t it? According to reports, the margin between solvency and default may have been paper-thin.
This happened in 1975 after the Ford administration rebuffed its appeals for help. A statement by Mayor Abraham D. Beame was drafted and typed and ready to be released on Oct. 17, 1975, if the teachers’ union did not invest $150 million from its pension funds in city securities. Nytimes.com reports:
“I have been advised by the comptroller that the City of New York has insufficient cash on hand to meet debt obligations due today,” the statement said. “This constitutes the default that we have struggled to avoid.” The statement, which pointedly invoked the comptroller, Harrison J. Goldin, a sometime Beame adversary, went on to say that the city had applied for and obtained a court order to preserve its assets from creditors.
Read more: When the City’s Bankruptcy Was Just a Few Words Away
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