State Bankruptcy
posted by Gerard Magliocca
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.
January 21, 2011 at 8:07 am
Posted in: Current Events
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Responses (1)
Jay - January 21, 2011 at 3:00 pm
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?
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