HANDS-OFF ON BROKE CITIES CALLED WISE FEDERAL POLICY

A strict hands-off federal policy when cities face bankruptcy, no matter how severe the emergency, could lead to more conservative financial practices and prudent borrowing, a study by the congressional Joint Economic Committee said.

"If local and state governments were convinced that a borrower of last resort was not available, their financial practices might become more conservative and their borrowing practices more risk-averse," it said. The study did not recommend t hat "extreme" option, but mentioned it as a possibility in a paper on state and local finances in a changing economy.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK