Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.
Bankruptcy could permit a state to alter its contractual promises to retirees, which are often protected by state constitutions, and it could provide an alternative to a no-strings bailout. Along with retirees, however, investors in a state’s bonds could suffer, possibly ending up at the back of the line as unsecured creditors.
what a monumental mess these jerks have made for their citizens…it’s gonna be a long line before it’s over….and they have to appeal to the feds, who are staring at a multi trillion dollar debt!…the deaf leading the blind