New Orleans is Busted

BATON ROUGE, La. -- The City of New Orleans has no money to meet its expenses, Mayor C. Ray Nagin told a meeting of elected officials from the area gathered at the state capitol yesterday.

"The city is bankrupt, the last payroll was the last cash we had," said Nagin, looking and sounding exhausted. "We have no money. ... I can't even make payroll for my police and fire [personnel]."