State Bankruptcy

The New York Times has a front-page story today about discussions in Congress to create a way for states to declare bankruptcy and restructure its obligations to public unions and pension funds.  My own take on the problem of “too-big-to-fail” states is here.

Frankly, I’m skeptical that a statute that would end up rolling back benefits to unions can make it through Congress or would be signed by the President.

You may also like...

1 Response

  1. Jay says:

    Uncharted waters. The Federal Government should wait on decisions to ‘bail-out’ states until legislation can get passed that will guarantee some type of re-payment. Would this legislation have to be on the level of a Constitutional amendment?