Not so fast. Is a state goes bankrupt, who do you think has to pay for bailing them out?
No one does.
It’s all on that state.
If a state goes bankrupt there is no constitutional or legal
requirement for the feds to bail them out.
This bovine excretion would stop if the feds said no more bailouts. If you hold state bonds for MA or CA then you should lose your money when the state goes belly up.
That said, we all know the feds will print more funny money and start bailing. The blue states are going to take us down with them.
“The trouble with Socialism is that eventually you run out of other people’s money.”
“The trouble with Socialism is that eventually you run out of other people’s money.”