The year NYC went broke

In this episode of Planet Money, Keith Romer and Nick Fountain delve into the 1975 New York City fiscal crisis, exploring how the city nearly went bankrupt due to a combination of economic challenges, budgetary gimmicks, and short-term debt. The hosts detail the city's struggle to balance its budget, the loss of trust from banks, and the desperate measures taken by city officials, including seeking federal aid. They highlight key figures like Donna Shalala and Felix Rohatyn, who played crucial roles in brokering deals with unions, real estate owners, and the state government to avert disaster, ultimately leading to a federal bailout and significant financial reforms.