In 1975, New York City had a financial collapse. Simply put, the city was spending more money than it was taking in, and to pay for the deficits, New York was selling capital improvement bonds in the market — to pay for other bonds. Now, this is called securities fraud, but no one from NYC ever was indicted for this financial trickery. When the fraud was exposed, there was a huge push to make the federal government buy NYC bonds or to do something to bail out the city. David Rockefeller went around the country trying to convince everyone — … Continue reading Would Defaults Really Mean the End of the World?