Whoo!
About the "Federal District of Hudson" -- I know the idea was floated a while back but I think we missed it's enactment. I'm not sure it would work, to be honest.
a) Carving off a piece of New York would require the consent of that state's legislature. While upstate may be persuaded to part with the City (then again, it's not like it isn't a good source of tax revenue, what ever its current woes), it would be difficult to persuade legislators from the city itself to vote to eliminate their jobs, and NYC is big enough that they're probably a majority of the legislature, or close to it. Plus the Governor is from Brooklyn -- I don't know if he gets a veto here or not, but it can't help.
b) Likewise, are the Congressmen from NYC voting to eliminate their jobs? (Given the current situation in the House, that might flip the chamber over to Republicans!) Or will NYC retain its federal representation despite being a federal district? (In which case, you pretty much have to do something for DC, which opens a fresh can of worms.) Granted, the Wallace Administration is probably looking to do something to bring the District back onsides anyway, but that'll be a potentially difficult haul and tying it with the New York issue won't do anybody any favors. Plus, there's still a).
I think, based on historical experience with bankrupt local governments, the likely path for NYC is that the state appoints an "emergency manager" who sidelines the elected government and proceeds to tear up labor contracts and any other inconvenient financial obligations until the city is solvent again. (Which will lead to all sorts of fun labor actions and other political consequences, especially if the blackout's happening on schedule.) Alternately, if the city throws in the towel altogether I suppose it's possible that it dissolves and reverts all functions to the five county/borough governments in the area, though a New Yorker will prolly know more than I about how likely that is.
I love the detail, you even touched on events like the Last Waltz (my favorite movie) and numerous other cultural and political events. I am glad to see Elvis living.
