During the fiscal crisis, the city struggled to regain prosperity. One of the ways the city worked to overcome this crisis was by supporting the wealthy and elite and laying off workers. The policy of planned shrinkage was implemented in which the wealthy were supported through taxes while city services and funding were drastically cut in declining neighborhoods. The Bronx was among the many areas turned to slums due to limited resources like city services like sanitation, police patrol, and fire stations. A combination of limited resources and poverty led people to burn their homes with landlords doing the same to their apartment buildings in order to get refinancing funds for the damages.( http://fivethirtyeight.com/datalab/why-the-bronx-really-burned/)With delayed/limited fire stations to respond to the fires, they did a lot of damage and further defaced the Bronx. In the burning of the Bronx, the city is to blame for limiting vital resources and abandoning the needs of the slums during the fiscal crisis.
Further Reading: http://nypost.com/2010/05/16/why-the-bronx-burned/