Sunday, November 6, 2011

Harrisburg: State capital’s bankruptcy underscores U.S. financial woes

Under a forbidding grey sky, Anthony Palumbo wraps himself in a burgundy apron to begin the morning kitchen ritual his father started 35 years ago after he emigrated from Naples, Italy, to open a pizzeria in Pennsylvania’s capital, Harrisburg.

Palumbo’s Italian Eatery has thrived despite some of the worst possible local disasters, including the fallout from the 1979 nuclear meltdown at the nearby Three Mile Island reactor and the decline of the local steel industry. One block south of the eatery, the city’s council delivered another blow on Tuesday when it voted to file for bankruptcy protection from its creditors, marking what is believed to be the first declaration of insolvency by a U.S. state capital. more