Part 3/8:
New York City's potential bankruptcy looms as a real threat, reminiscent of recent municipal failures in the United States. The last significant municipal bankruptcy was Puerto Rico's in 2017, but historically, cities like Detroit, Stockton, Harrisburg, and Jefferson County have also declared bankruptcy due to insurmountable debt loads. If New York succumbs, it could lead to catastrophic consequences for investors and bondholders who have funded the city's infrastructure and services.