"More Cities on Brink of Bankruptcy"

Government spending is the ultimate tax on the economy

Milton Friedman
Economic Nobel Laureate

The possibility of a bankruptcy filing by the city of Harrisburg, Pa.,
 the state capital, looms large these days
and it could be the first in a series...

Kate Kelly
CNBC, Wednesday, 26 May 2010

Ponzi finance units must increase its outstanding debt
in order to meet its financial obligations

A transition occurs over the course of an expansion
as increasingly risky positions are validated by the booming economy
that renders the built in margins of error superfluous
encouraging adoption of riskier positions

Eventually, either financing costs rise
or income comes in below expectations
leading to defaults on payment commitments

 Hyman Minsky