Spot on article... but you don’t bail them out either. Let the states figure it out on their own. They can borrow money outside the US if they want and aren’t a credit risk which I’m sure some are, or they could learn how to balance their checkbooks and stop handing out free shxt for votes. and no they can’t tax their way out of it either.
Seems to me I remember reading some years ago, in an article about debt, the state of Georgia or maybe ot was Alabama iirc, is still prohibited to this day from floating any bond issues in the City of London. I don’t know how customary this is today or whether it is a factor, but.
They defaulted on loans made in the 1870s or somesuch. Bankers and insurance co. have long memories. They want their money back.