Why cities aren't hitting panic button -- yet

Fortune reports:

Cities and other municipalities are in a world of budgetary hurt. Is a wave of bankruptcies on the way?

The odds are against it, given the rules that restrict who can file for protection from creditors under Chapter 9 of the federal bankruptcy code. States, for instance, can't file, while in many cities, towns and other government bodies can seek bankruptcy only in limited circumstances.

An article well worth your time.