Default
How to Emerge from Default and Debt: Lessons from Cleveland
In December 1978, Cleveland, Ohio became the first in the United States to default on its debts since the Great Depression. The city, soon nicknamed “Mistake by the Lake,” owed six banks a total of $15 million. It took 22 months — and a new mayor, George Voinovich — for the city to regain financial […]
Is a Greek debt default inevitable?
The Greek Finance Ministry said talks resumed last night between the country and international leaders, on a way to loan cash to Greece by mid-October and save it from defaulting. U.S. and European markets have fallen as Greece’s fate hangs in the balance, and many are wondering how a Greek default would impact the rest of […]
As Debt Deadline Looms, States Could Be Biggest Loser of Them All
As the deadline for increasing the nation’s debt ceiling inches closer, individual states are getting ready for the possibility that the Treasury will run out of cash. According to the National Association of State Budget Officers, 35 percent of state budgets rely upon federal funding to keep programs like unemployment, Medicaid, transportation projects and highways […]
Historically black colleges tackle student loan defaults
Growing numbers of recent college students are defaulting on their student loans, which can threaten federal funding for their alma maters. A group of historically black colleges in Texas set up a successful program to counsel students and avoid default.