Let the states go bankrupt
I agree but I’m selling my muni bonds:
They should go bankrupt. I’m looking forward to it.
There are three possibilities — bankruptcy or bailouts or ruinous taxations. Of the three, bankruptcy is the one that makes the most sense because it’s the one that conveys the most accurate knowledge — which is that they’ve run out of money and couldn’t cover all the promises they made.
The trouble with pie in the sky promises to be all things to all people is that eventually the bill comes due.
January 25th, 2011 at 10:24 am
The bigger problem is that pie in the sky promises don’t come due until after a couple of elections.
January 25th, 2011 at 11:43 am
And there’s a good chance the opposition will be in power when the sky falls and you can then blame the problems you caused on them. Most people will be simple enough to believe you.
January 25th, 2011 at 2:25 pm
Bankruptcy or Bailout should be accompanied by a loss of State status to some modified territory, including the loss of voting rights of the state delegation to Congress. A receivership of a sort, until the financial issues are sorted and new elections across the board have been conducted.
January 25th, 2011 at 7:30 pm
Anybody ever think about lowering state spending to get the debt under control? They still collect taxes. Plenty of others have said it, but the problem isn’t insufficient tax revenue. The problem is too much spending.