The Financial Crisis in New York

In the early sixties, new york almost goes into a fiscal crisis. The proportion of municial bonds that are held by commercial banks declines over the course of the early seventies. And this is kind of right at the same moment when many cities are actually trying to expand their burrowing cities and also states. This is at a moment when there's an increased demand for public borrowing. But i think tis change in context is important to understand. Again, part of why the fiscal crisis emerged when it did.