Bond investors are calling New Jersey’s actions to control Atlantic City’s teetering finances “bizarre” and “confusing” as the mayor says bankruptcy may be its best option, according to a Bloomberg analysis today. Local leaders, leery of state control, are meeting today to discuss bankruptcy. New Jersey, which has policies aimed at steering cities from financial disaster, must approve a municipal bankruptcy, which hasn’t happened since the 1930s. Senate President Steve Sweeney, the top Democratic legislator, says that a takeover will help solve the city’s problems outside of the courts — but investors say that isn’t a plan to reverse its fortunes.
