Part 6/11:
Local governments, often dubbed ticking time bombs, have been borrowing trillions using obscure financing vehicles, largely to fund unprofitable projects. Some cities are now expending more than 100% of their annual budget just to service interest on their debt. The approval of an $840 billion debt refinancing plan in 2024 allows these entities to swap short-term debt for long-term obligations, merely delaying the inevitable crisis rather than resolving it.