Bridgeport, Conn., is still solvent, a federal judge rules last Thursday, somewhat to the relief of the municipal bond market. Bankruptcy is not the answer for municipal ills, at least not yeat.

The case has attracted intense interest in our market because Bridgeport is the largest city so far to try solving its financial difficulties with Chapter 9 of the Bankruptcy Code. The city faces a shortfall of $16 million in a $320 million annual budget for the fiscal year ending June 30, 1992, but it has $25 million in the bank.

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