ABSTRACT
By the time you read these words, they may be obsolete. New York City’s financial situation is deteriorating by the hour. The only choices left are insolvency or federal aid. The administration could radically alter the fortunes of New York and all other cities and states without the expenditure of a penny. By the stroke of a pen, it could guarantee municipal and state bonds just as the Federal Deposit Insurance Corporation guarantees the safety of money in the bank. Stipulations could be made. Cities and states could be required to adhere to legitimate accounting practices in order to qualify. Management standards could be set up. With such assurances, investors would no longer need the inducement of tax-exempt status.
