[Uncle Ike]

What’s the alternative for these cities?? Default, lock the doors, and go out of business??

[Mike Darancette]

And here I thought that Bankruptcy was a Federal filing.

[cdcdawg]

This could raise an interesting constitutional question. Can a state bar or inhibit a municipality from filing under the federal bankruptcy statute? Very interesting.

[Snickering Hound]

http://en.wikipedia.org/wiki/Chapter_9_bankruptcy

[ClearCase_guy]

This really is like King Canute and the tide coming in. Is the government powerful enough to change reality?

Health care reform might be a great success if the government would just bar people from dying.

[Lancey Howard]

California is one hilarious place.

[Hoodat]

While they’re at it, why not pass a law banning unemployment?

[pogo101]

Almost certainly a violation of the Supremacy Clause. Bankruptcy is controlled exclusively by federal law; no state or local government may pass a law adding additional burdens to any would-be debtor.

[count-your-change]

The California Legislature today passed a bill declaring all California cities solvent with a cash surplus.
Los Angeles city government heaved a collective sigh of relief knowing their financial problems were over and they could go on spending as before.