What does bankruptcy have to do with being dem or rep? Banks having to eat a bad loan is hardly D or R - just is
The democrats are more inclined to bail people, businesses, states out than the republicans, but Bush disproved this. In reality, there is little difference between the two parties.
I believe you will see the union and state pensions become insolvent and they will be merged, along with the IRAs, into the social security system or one very much like it.