Well, we certainly are headed in that direction.
But that’s bad news. Bankruptcy means repudiating debts. Even coming CLOSE to that means lowering the bond ratings whcih translates into lower interest rates on state bonds and higher taxes.
Actually, I think it could lead to a strengthened bond ratings. I know =I= would have greater confidence in a State that would clean house compared with one that thinks it is obligated to pay money to people who do nothing and were overpaid whenever they were doing whatever job they held.
Bankruptcy means repudiating debts.
Or "restructuring" them.
ML/NJ