Lilyo OP t1_japjmhz wrote
Reply to comment by uona1 in To Achieve Real Financial Accountability, New York City Needs a Public Bank by Lilyo
NY pays 8% of the $100B collected yearly revenue to make payments on debts the City owes to private lenders because it has no public bank.
djdjddhdhdh t1_jat5pkd wrote
That’s not how that works. Nyc issues bonds which investment companies buy with their client funds in order to earn interest. Nyc wouldn’t be able to just loan itself money even if was a bank, commercial and investment lines must have clear separation of funds by law. Their bank can borrow from the fed but those are short term loans for operating capital, like a day or two
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