Magazine content is available exclusively for TIME subscribers.CITIES: New York Worries
New York City is assured of being able to pay its bills until December, but the possibly dire effects of an eventual default continue to stir up worry all over the country. Last week a federal study indicated that about 100 of the nation's 15,048 banks had invested sums equal to 50% or more of their capital in New York City bonds and other obligations and thus would be in serious trouble if a default caused the value of those securities to plunge. The banks would probably not be wiped out: Federal Reserve Chairman Arthur Burns has pledged that...
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