State bankruptcy throws off the shackles for demanding responsible fiscal behavior for the states. Just as many individuals will be irresponsible, so will states - already California and Illinois, along with others, have been irresponsible without a promise of bankruptcy. And think about the Federal government mandates to the states where Federal spending can be off-loaded down to the state level and eliminated like a flush of the toilet through state bankruptcy.
Finally, worst of all, this is another ruse whereby wealth can be redistributed to Federal liking. Think of all the pension funds and investors in GM who lost money when the Federal government swiped their equity and gave it to the UAW and the US government. The same kind of entities, companies and individuals invest in obligations of states as well. Bankrupcy courts could just cancel those obligations and transfer that wealth back to the states, or holders of state obligations that those in power like better.
State bankrupty is not just a horrible and atrocious idea, it is raw evil at work.
“”State bankrupty is not just a horrible and atrocious idea, it is raw evil at work.””
Well stated my friend.