Comments on: Should states be able to go bankrupt? http://blogs.reuters.com/felix-salmon/2010/12/07/should-states-be-able-to-go-bankrupt/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: y2kurtus http://blogs.reuters.com/felix-salmon/2010/12/07/should-states-be-able-to-go-bankrupt/comment-page-1/#comment-21724 Thu, 09 Dec 2010 17:12:20 +0000 http://blogs.reuters.com/felix-salmon/?p=6459#comment-21724 “The reality is that most red states are tax parasites. IOW they receive more federal dollars back than they send in for taxes to the federal level.”

I belive that is true of all 50 states… think about it, the federal goverment currently spends very roughly 150% of what it collects… so all states get more than they pay in.

I accept that there is inequity between states and that red states get a better deal than blue states… but all states eat more gubmint cheese than they paid for.

It will be very unpopular for stingy states to bail out generous ones. Can you imagine states where workers get 60% final average salary pensions at 65 are asked to bail out states that get 100% of final average sallary pensions indexed for inflation at 60? Hardly fair.

Best hopes for more forced savings in the future… otherwise the prudent will be required to support the shortsited more than they currently do.

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By: hm2viking http://blogs.reuters.com/felix-salmon/2010/12/07/should-states-be-able-to-go-bankrupt/comment-page-1/#comment-21701 Wed, 08 Dec 2010 18:30:16 +0000 http://blogs.reuters.com/felix-salmon/?p=6459#comment-21701 http://www.cbpp.org/cms/index.cfm?fa=vie w&id=3323

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By: hm2viking http://blogs.reuters.com/felix-salmon/2010/12/07/should-states-be-able-to-go-bankrupt/comment-page-1/#comment-21700 Wed, 08 Dec 2010 18:27:24 +0000 http://blogs.reuters.com/felix-salmon/?p=6459#comment-21700 48/50 states are in fiscal trouble. The conservative paradise of TX bailed itself out using stimulus dollars. The reality is that most red states are tax parasites. IOW they receive more federal dollars back than they send in for taxes to the federal level.

(Most of the state bankruptcy proposals are nothing more than a attempt to lower wages for even more employees….)

In our system we have developed a transfer payment system where the feds set mandates (often unfunded) and the states administer the programs.

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By: Unsympathetic http://blogs.reuters.com/felix-salmon/2010/12/07/should-states-be-able-to-go-bankrupt/comment-page-1/#comment-21696 Wed, 08 Dec 2010 18:16:33 +0000 http://blogs.reuters.com/felix-salmon/?p=6459#comment-21696 In response to the subject of this thread, Felix: Of course states should be allowed to go bankrupt. Creditors made bad loans, and ultimately they should suffer.

In response to the topic within this thread, Felix: Read the self-evident post – that’s the only source worth considering.

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By: JimPP http://blogs.reuters.com/felix-salmon/2010/12/07/should-states-be-able-to-go-bankrupt/comment-page-1/#comment-21671 Wed, 08 Dec 2010 04:28:04 +0000 http://blogs.reuters.com/felix-salmon/?p=6459#comment-21671 ARJ

Indeed so.

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By: ARJTurgot2 http://blogs.reuters.com/felix-salmon/2010/12/07/should-states-be-able-to-go-bankrupt/comment-page-1/#comment-21670 Wed, 08 Dec 2010 04:20:30 +0000 http://blogs.reuters.com/felix-salmon/?p=6459#comment-21670 JimPP: Good link. It’s what were seeing in my area (Colorado). The local water district just sold a bunch of BABonds, and pushed them out the door in a hurry, but it was going to do the bonds anyway, it has the revenue, and the rushed BAB thing was simply a way of getting cheaper interest. Maybe there will be some distressed states, but they will simply refinance the debt. There are many scarier things in the world than California muni bonds, and the banks seem to be able sell those.

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By: JimPP http://blogs.reuters.com/felix-salmon/2010/12/07/should-states-be-able-to-go-bankrupt/comment-page-1/#comment-21667 Wed, 08 Dec 2010 03:45:02 +0000 http://blogs.reuters.com/felix-salmon/?p=6459#comment-21667 This is all just real silly.

Read here for an actually informed opinion.

https://self-evident.org/?p=876

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By: ARJTurgot2 http://blogs.reuters.com/felix-salmon/2010/12/07/should-states-be-able-to-go-bankrupt/comment-page-1/#comment-21664 Wed, 08 Dec 2010 02:45:15 +0000 http://blogs.reuters.com/felix-salmon/?p=6459#comment-21664 Just so we understand, I’m in the west, we’ve got the nukes, the radiation will blow east, and other than the Smithsonian and the Met… okay, and the pandas, but otherwise…

I highly recommend ‘This Time is Different’ by Carmen Reinhart and Ken Rogoff. It’s an attempt at an empirical history of financial default, and wonderfully detailed. I was reading it last night and wondering whether California isn’t already in technical default on some of its debt with the voucher thing it did earlier this year. Bottom line is it’s not uncommon, not unheard of at varying levels in our history, and we will survive. I note that a Reuters sometimes blogger named Agnes Crane has been poking around the bond issue :}} for a while now.

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By: lemarin http://blogs.reuters.com/felix-salmon/2010/12/07/should-states-be-able-to-go-bankrupt/comment-page-1/#comment-21663 Wed, 08 Dec 2010 02:30:35 +0000 http://blogs.reuters.com/felix-salmon/?p=6459#comment-21663 Sounds like Merkel redux…

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By: MattJ http://blogs.reuters.com/felix-salmon/2010/12/07/should-states-be-able-to-go-bankrupt/comment-page-1/#comment-21654 Tue, 07 Dec 2010 23:26:58 +0000 http://blogs.reuters.com/felix-salmon/?p=6459#comment-21654 You define non-starter your way, I’ll define it mine; a federal bailout of profligate states like those you mentioned is a non-starter. Unless you actually want to start Civil War II.

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