Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
What Happens When a City Really Defaults
Episode 8 of The Fiscal Policy Podcast with Fexingo digs into the most dramatic fiscal failure at the local level: a municipal default. We use the 2013 Detroit bankruptcy as our anchor — the largest municipal bankruptcy in US history at $18 billion in debt. Lucas and Luna walk through how Detroit got there, what Chapter 9 actually did to pensioners and bondholders, and what it means for cities like Chicago or San Francisco today. They break down the legal and political mechanics that make municipal defaults different from corporate ones, the role of state oversight boards, and why most…
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