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Focuses on the financial problems faced by New York City. Reasons for the financial crises in the city; Overview of efforts by the government to provide funds for the city; Assessment of the scenario in case of a default by the city; Information on the steps planned by financial regulatory agencies in case of a default by the city; Discussion of the consequences of the financial crisis; View that private investors need only regain sufficient confidence that the city has mastered its own finances; Effect of general inflation on fuel, utility bills, building materials and paper; Creation of the Municipal Assistance Corporation (MAC), a special corporation created by the state legislature to avoid a default; Description of the role and functions of the MAC; Report that the banks had a temporary liquidity problem, which would be able to receive extraordinary loans from the federal government; Valuation of securities would be delayed to allow for the market for such securities to stabilize.