Plans being drawn up to let states declare bankruptcy

[kregener]

Pensioners and investors in state bonds could lose out.

NYT: Policymakers are working behind the scenes to come up with a way to let states go broke & get out from under crushing debts, including pensions.

http://www.msnbc.msn.com/id/41188877/ns/business-the_new_york_times/?GT1=43001

[Twisted Titan]

Unlike cities, the states are barred from seeking protection in federal bankruptcy court. Any effort to change that status would have to clear high constitutional hurdles because the states are considered sovereign.


States havent been sovereign since 1933

[Buddha]

No Fucking Shit?

[Buddha]

All states are dependent on the Fed 100% They can "let" them do whatever they want. Plans within plans within plans baby. Do you all really think that this muni BS is it? Let them become bankrupt what happens if that is the prospect? More Fed control. Fed is the house, the house always wins. Get the fuck over it.

[cthulu]

The first stage of forced secession. Bring it awn!!!!!

[palani]

You fellows are making one important mistake. The government is what goes bankrupt. The state is incapable of bankruptcy. The government and the state are two completely separate things.

Think of the government in terms of democrat or republican. Two distinct philosophies at odds with each other. At any given time some state governments are composed of one or the other. Same is true of the federal level.

The state on the other hand has a constitution which is intended to generally direct the currently existing government in the exercise of its activities.

When it comes down to it you are the state (or would be if you had not chosen to delegate your authority to government representatives). So when you talk of the state being bankrupt you are only referring to yourself.

I believe I would rather chose the insolvent route myself rather than proclaiming myself to be irresponsible (as in bankrupt). Better to stay outside performing on contracts rather than choosing to enter the asylum with states (people) who cannot sustain their contracts.

[cortez]

the comments are interesting...

[Andy9999]

state /s bankruptcy = pensions fund obligation go to the garbage and unions will be broken ,THEY WILL DEFAULT ON ALL OBLIGATIONS promises (don't forget they collected taxes for these promises. :boohoo :boohoo

[mick silver]

does this mean the state loss all the land an things they have taken . like you or me would if we file bankruptcy