Amazing possibility: Plans being drawn up to let states declare bankruptcy

[irishScott]

*yawn* you doomsayers have been spouting nonsense like this for so long, you've lost all impact.

I dunno, the people want too much and the politicians are too spineless to say no. If the US has a mass loan-default you can bet things will be shit for a while. So far the cuts and curbs to spending have been symbolic at best.

 

[rudeguy]

What part of "they can not afford it" don't you understand?



No, he is selling the bond to someone else who will then get fucked instead of him.

its great to see the liberal mind at work.

Why is it that you want everyone (except for you of course) on government assistance? Is it a pride thing? Do you think that everyone else is inferior to you? Or...ok I got it.

The truth is that you feel inferior. Your only hope of maintaining your false sense of pride is to see the rest of society beg for help. Then when they do, you can be the hero.

Its sick. Really fucking sick.

 

[Slew Foot]

Haha stupid politicians are fucking up the country.

 

[Genx87]

This is simply ridiculous.

 

[chucky2]

It was stated in another thread related to this that the states cannot declare bankruptcy, it's illegal. Those folks might want to contact the folks of subject in this article, sounds like they don't know that...

Chuck

 

[brandonb]

If this happens, I imagine there will be alot more Giffords in the news.

 

[Pneumothorax]

BS, the fed will print a couple more hundreds of billions and bail out the states. Why break precious Union pension contracts and risk Democrat losses, when you can just print more money and make the $200K per year California pension only worth $100K per year?

 

[Jiggz]

BS, the fed will print a couple more hundreds of billions and bail out the states. Why break precious Union pension contracts and risk Democrat losses, when you can just print more money and make the $200K per year California pension only worth $100K per year?

Just like what they say, "We're in a recession now because 25% of the machines at the Bureau of Printing are out of commission. We'll get out of this recession as soon as GE provides the new machines and catch up with printing $$$"! Now that should explain why Jeffrey Immelt was appointed as Chair of the Obama's economic team this morning! LOL, imagine that? The only solution to all our financial woes, GE's printing machines! Go Jeffrey go!!!!

 

[Dissipate]

What is "mass franchise democracy"?

A democracy where almost anyone can vote.

 

[waggy]

more reading i have done on it i almost gurentee it won't pass. Even a real talk about it will drive politicians to increase spending so more states will end up in "bankruptcy".

not to mention what would it really fix?

 

[Infohawk]

A democracy where almost anyone can vote.

So what kind of democracy do you prefer?

 

[Infohawk]

BS, the fed will print a couple more hundreds of billions and bail out the states. Why break precious Union pension contracts and risk Democrat losses, when you can just print more money and make the $200K per year California pension only worth $100K per year?

Great post.

 

[Dissipate]

So what kind of democracy do you prefer?

None, but in absence of that, at least one that isn't designed to go totally bankrupt from the beginning. People commenting in this thread who are outraged/shocked that the states are going bankrupt are ignorant fools who don't understand even elementary game theory. In fact, no other outcome could have taken place. I just can't wait for the fed gov to go down, so I can watch all the blubbering fools who have no idea how democracy actually works.

 

[Patranus]

There are multiple types of bankruptcy. Many involve some relief or recusal from the obligation to repay certain creditors.

So yes, state bankruptcy is a big F'ing deal.

Pretty sure all of those laws were thrown out when Obama put GM into bankruptcy.

 

[Dr. Zaus]

None, but in absence of that, at least one that isn't designed to go totally bankrupt from the beginning. People commenting in this thread who are outraged/shocked that the states are going bankrupt are ignorant fools who don't understand even elementary game theory. In fact, no other outcome could have taken place. I just can't wait for the fed gov to go down, so I can watch all the blubbering fools who have no idea how democracy actually works.

Proportional pay per citizen for the budget; fix the regressiveness of this tax with welfare for the poor. (which is just being up front with the fact that a progressive tax is nothing but welfare)

Or if you ar in love with a progressive tax we have one that goes up to pay the las year's debt;

 

[Hayabusa Rider]

Great post.

Yet it might still be worth it. Stiff those who invested in the state, wipe out the debt then pass more of the mandated programs burdens onto them again so they can run up the tab even more.

The authoritarians would be thrilled.

 

[Zebo]

:whiste:

 

[Zebo]

It's either bankruptcy or a federal bailout. I think it will be a bailout. Whats another few trillion?

A few? its gonna take a lot more than a few trillion to make up pension shortfalls and debt accumulated, states/munis alone are 14 trillion in debt. Amounts to same thing as not getting paid regardless if you gin up that much money. See Wiemar Germany.

 

[Zebo]

None, but in absence of that, at least one that isn't designed to go totally bankrupt from the beginning. People commenting in this thread who are outraged/shocked that the states are going bankrupt are ignorant fools who don't understand even elementary game theory. In fact, no other outcome could have taken place. I just can't wait for the fed gov to go down, so I can watch all the blubbering fools who have no idea how democracy actually works.

Pretty much how it looks. Whole west is in same pickle. I used to think you were crazy advocated benevolent dictatorships/monarchy..maybe not so much anymore.

 

[kranky]

If states can declare bankruptcy and stiff all the muni bondholders, wouldn't that be effectively the same thing as raising the taxes on the wealthiest? I suspect the wealthy hold the lion's share of muni bonds.

 

[Darwin333]

its great to see the liberal mind at work.

Why is it that you want everyone (except for you of course) on government assistance? Is it a pride thing? Do you think that everyone else is inferior to you? Or...ok I got it.

The truth is that you feel inferior. Your only hope of maintaining your false sense of pride is to see the rest of society beg for help. Then when they do, you can be the hero.

Its sick. Really fucking sick.

I am personally not concerned if someone is or is not on government assistance.

My opinion is based on the fact that I passed my elementary math classes, nothing more.

Eventually the math always wins.

And I am a liberal now? That is kinda funny, I get accused of being a right winger every once in a while but rarely a liberal.

 

[iGas]

Another round of depression around the corner... sell your stocks people

Done that today. I'm holding cash once again, however I'm down almost 10K since Oct/Nov of 2010.

I'm worry if this would affect the American States to settle their energy bills, because this will affect Canada and my job.

 

[Zebo]

Like I suggested in another thread, "where there's a will, there's a way." It doesn't make any sense to forfeit the future of this country for ridiculous public pensions. Everyone's going to have to be poorer, even retired people.

Of course, it would be nice if legislators and their voters would stop supporting idiotic spending too.

Pensions are just a small fraction of the debt death spiral we are in. It's a death spiral because you cut anything, since 1/2 of our GDP is govt spending and half of that is borrowed, you cause economic catastrophe more, meaning less taxes, then you gotta cut more goodies, and you're in a negative feedback loop. So we have to keep borrowing/printing which eventually lead to interest consuming 100% of taxes or hyperinflation. There is no solution besides getting Americans working and paying taxes instead leaching them. Good luck with that since we like our cheap trinkets and policians and thier friends like the profits.

The other solution is insolvency and worthless currency and start over after a rough few years. Which will happen since we don't have it in us to pay now. It's only money though, just digits, a construct, we'll still have our assets and wealth if you prepared.

 

[IGBT]

who would ever risk investing in muni bonds at just the mire mention of this?? Muni bonds finance nearly all municipality infrastructure projects. Many already are getting out of muni's. This will cause a panic and turn many communities into run down ghost towns.

 

[Generator]

Its a house of cards, this country this week had China come in and people are talking about a new cold war. Only this time America plays the role of the USSR.

I really have no idea what a bankrupt America would entail. I have a feeling things will mostly remain the same and the majority of fat fuck consumerism won't even notice. But the old, the poor? How do they not wither away as record bonuses are handed out. At least the choice wars would be over...