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View Diary: Bankruptcy Is Not An Option (41 comments)

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  •  accepting your argument (2+ / 0-)
    Recommended by:
    Pris from LA, not this time

    What would happen, if, for example, California went bankrupt and was no longer able to provide safety net services or keep the things we expect it to provide (schools, libraries, roads, police and fire) at acceptable levels?

    People would move in large numbers to other states, pressuring their budgets, and so it would go.  If these were neighboring sovereign countries, freedom of movement could be restricted, but because the states are all part of the same country, we are all affected by the fortunes of one member state.

    There is no snooze button on a cat who wants breakfast.

    by puzzled on Sun Jan 23, 2011 at 06:43:57 AM PST

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    •  Bankruptcy is not annihilation. (2+ / 0-)
      Recommended by:
      doc2, coffeetalk

      Bankruptcy is legal protection from creditors with strings attached.

      Why don't you try reading the rules, Shankopotamus?

      by bugscuffle on Sun Jan 23, 2011 at 06:58:20 AM PST

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      •  yes (2+ / 0-)
        Recommended by:
        Pris from LA, nchristine

        but the fiscal austerity required in bankruptcy would make it difficult for a state to provide the kind of services people take for granted.  

        There is no snooze button on a cat who wants breakfast.

        by puzzled on Sun Jan 23, 2011 at 07:02:24 AM PST

        [ Parent ]

        •  Bankruptcy is a legal remedy. (2+ / 0-)
          Recommended by:
          puzzled, Pris from LA

          States do not currently have access to bankrupcy as a legal remedy.  It would take an act of congress to give them such access.

          "In this world of sin and sorrow there is always something to be thankful for; as for me, I rejoice that I am not a Republican." - H. L. Mencken

          by SueDe on Sun Jan 23, 2011 at 07:13:49 AM PST

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        •  Californians for decades (4+ / 0-)

          have voted for more services and less taxes. At the same time. To make up for the perpetual shortfalls, and to pay for all sorts of projects, they simply issued bonds. CA, IMO, needs to have its credit card taken away. Which means it needs to suffer for its ridiculous behavior. Perhaps a bailout, in the form of a loan from the federal govt, should be accompanied by a mandatory change in the CA Constitution that would eliminate the 2/3rd requirement to pass a budget, limit bond issuance, and restrict the rights of the citizens to constantly pass these ridiculous propositions that give everyone free ponies but also lower taxes. And repeal Prop 13.

          I'm in the I-fucking-love-this-guy wing of the Democratic Party!

          by doc2 on Sun Jan 23, 2011 at 07:23:41 AM PST

          [ Parent ]

          •  Californians for decades (1+ / 0-)
            Recommended by:
            J Rae

            have sent far more money to Washington than ever came back . . . we have been subsidizing the rest of the Country's spendthrift ways.  I find it fascinating that so many in (red) States that have been sucking on the California teat for years now get so exercised about giving any of it back . . .

            Fake Left, Drive Right . . . not my idea of a Democrat . . .

            by Deward Hastings on Sun Jan 23, 2011 at 10:39:47 AM PST

            [ Parent ]

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