Oh, that would work just swell. A federal law allowing states to force a "cram down" on bondholders wouild have investors rushing to the exit in any bond auction being held by a state nearing insolvency, driving interest rates up dramatically for such a state and possibly making it impossible to sell bonds at any price.
And investors won't ever again be fooled by creation of "senior" securities, supposedly standing at the head of the line for repayment, after seeing what happened to holders of such securities in the auto bailouts last year: Obama picked their pockets and handed the money to the union thugs who own the democrat party,
A novel, forced idea, only spend within your means.
Hmmm. One could begin a political movement based on that concept.
yitbos