Although I too am thrilled at the election outcome,
states are not eligible to petition for bankruptcy protection. (Chapter 9 applies to subdivisions of states, like counties, cities and special agencies like MTA.)
I suppose a horrifically insolvent STATE would end up like a similarly insolvent COUNTRY: it would keep issuing IOUs, but over time, creditors would offer less and less goods and services.
Rush said Obalmy would bail out CA because it is too big to fail (sound familiar?). Where/when will this all end?