[chicagolady]

ILLINOIS? OBAMA LAND? The answer is yes.

[RC one]

Regarding this state bankruptcy thing, I think you need to be asking yourself one very important question: “sovereigns or Krugerrands”?

[Ev Reeman]

The states in the worst financial shape namely California, Illinois, Massachusetts, New York and Michigan should immediately decalre bankruptcy.

This would be the first step in nullifying all existing union contracts and pension plans which can then be renegotiated anew and with a more practical financial and economic sustainability, in other words, having the recipients of these plans pay a lot more into their own pensions (at least 50% minimum).

[wendy1946]

There's also the question of the fed having just spent 12+ trillion bailing out banks and wallstreet fat cats and not wanting any part of the relatively paltry 200 billion it would take to bail out the states and by that all which is meant would be to eliminate the high interest rates they pay for borrowing. Not that the states don't need to clean up their own fiscal acts, but money policies are part of the picture.

Note that North Dakota, with its own bank and access to credit similar to what the federal govt. has, is basically immune to all the grief we read about.

[kneehurts]

You left out the Peoples Republic of Connecticut. We bucked the national trend and voted all the communists back in and even a dim governor this time. I guess you just can’t win in a state with the highest per capita of state workers. Please please Gov Malloy raise the “temporary” income tax to pay for all those sweet state pensions!

[Talf]

simple solution

pay public employees in scrip

[Chode]

bankruptcy yes... bailouts NO!!!

[BuffaloJack]

New York. They can’t do bankrupcy soon enough!