First it was Indiana looking to let cities (and probably counties, too, the way things go in government) declare bankruptcy. Now we have news that the feds are looking at allowing states to declare bankruptcy. There goes the bond market. As usual, one of the key components they mention that states are trying to get out from under are pensions. Government employees have some serious pensions and they're hurting the states bottom lines. I think it's obvious that states need to take a hard, serious look at how they're operating in the pensions area and start looking at other options. Bankruptcy is serious business when you're talking about entities as large as a state.
NYT: Plans being drawn up to let states go bust - Business - The New York Times - msnbc.com
NYT: Plans being drawn up to let states go bust - Business - The New York Times - msnbc.com
