Comments on: When states go bust http://blogs.reuters.com/james-pethokoukis/2011/02/07/when-states-go-bust/ Politics and policy from inside Washington Sun, 07 Apr 2013 21:23:48 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: cwillia11 http://blogs.reuters.com/james-pethokoukis/2011/02/07/when-states-go-bust/comment-page-1/#comment-10786 cwillia11 Sat, 12 Feb 2011 01:29:35 +0000 http://blogs.reuters.com/james-pethokoukis/?p=5806#comment-10786 The states do not need bankruptcy. They can simply default. They can outlaw public sector unions and freeze their pension liabilities. And if they modify their constitutions and their laws the states creditors will have no recourse. As long as this is done in a roughly even handed way the creditors would not be able to challenge these actions in federal courts. The states do not need bankruptcy. They can simply default. They can outlaw public sector unions and freeze their pension liabilities. And if they modify their constitutions and their laws the states creditors will have no recourse.

As long as this is done in a roughly even handed way the creditors would not be able to challenge these actions in federal courts.

]]>