Rescuing New York city, 1975-1978 ( USA).

Analyses the origins of and solutions to New York's fiscal problems. The capitalist basis of the western city engenders its own eventual fiscal crisis: New York is a prime example. State expenditure cuts were instituted and a scheme involving workers' pension funds devised to mitigate the crisis. Pension funds, one of the fastest growing elements in capital markets, were used to purchase long term city bonds. Thus, the short term liquidity crisis was transformed to a long term debt. Federal policies followed, but lacked finance and unions found themselves helpless in the face of state manipulation of finance capital. -K.A.Cowlard