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By early 1975, New York City owed $5bn to $6bn in short-term debt, out of an operating budget of $11.5bn. According to the then-city budget director, Peter Goldmark Jr, “Many people believe there is little or no real security or receivables behind these obligations.” Wall Street bankers, who had enabled much of this reckless behavior, now abruptly refused to take up any more of the city’s notes, leaving it teetering on the edge of bankruptcy.</text>
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