Faced with insolvency in 1975, New York City resorted to dangerous financial shortcuts that ultimately failed. The state stepped in by creating the Municipal Assistance Corporation (MAC), a public authority led by Felix Rohatyn and others, to restore credibility and issue bonds backed by state-guaranteed sales tax revenue. Selling these bonds required convincing skeptical investors across the country, while simultaneously negotiating painful compromises with unions, banks, and property owners. A $2 billion state aid package imposed strict budgetary oversight, and after President Ford initially refused federal help—sparking the infamous 'Ford to City: Drop Dead' headline—Washington eventually approved over $2 billion in short-term loans. It took years of austerity, higher taxes, and structural reforms before the city regained market access by 1979, marking a turning point in urban fiscal policy and governance.