Filed under: Economy, JP Morgan Chase, Berkshire Hathaway, Citigroup, Credit

Last month, the capital city of Pennsylvania filed for Chapter 9 bankruptcy protection. Harrisburg had taken out a $317 million loan to fund a municipal incinerator, but it didn’t have the money to pay even interest on the loan, much less the principal.

So the Harrisburg City Council did what any debtor, backed into a corner and seeing no way out, would do. It filed for bankruptcy protection.

Court Calls “Backsies”

That was a big black eye for Harrisburg, for the state that surrounds it,…

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">Abracadabra! Bankrupt Cities are Suddenly Un-Bankrupt! (Or Not) originally appeared on DailyFinance.com on 2011-11-30T15:45:00Z.

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