State of Illinois About to Declare Bankruptcy

1. 2017-07-04 at 3:53 AM UTC

   #21
   The Self Taught Man Black Hole
   Your bloomberg article does not repeal the 10th amendment.
2. 2017-07-04 at 3:56 AM UTC

   #22
   Nil African Astronaut [the overexcited four-footed chanar]

   Originally posted by 霍比特人 They literally cannot go bankrupt. It's a non-issue. If the state is in debt, it's in debt.

   
   So they can't go bankrupt, no haircut is that better?, there are no effects of this mounting debt? Taxes stay the same, services aren't cut? raising loans still an option? Limitless credit in a finite world makes little sense to me, at some point something somewhere has to give.
3. 2017-07-04 at 4:09 AM UTC

   #23
   The Self Taught Man Black Hole

   Originally posted by Nil So they can't go bankrupt, no haircut is that better?, there are no effects of this mounting debt? Taxes stay the same, services aren't cut? raising loans still an option? Limitless credit in a finite world makes little sense to me, at some point something somewhere has to give.

   
   I mean I'm not an economist, but yeah, you bring up very good points. Illinois is running on a 6 billion deficit. Budget cuts keep ending up in nothing because of the same reason everything else doesn't pass in this country: elephants and donkeys. It's not a pretty situation, that's for sure.
4. 2017-07-04 at 4:12 AM UTC

   #24
   

   -SpectraL coward [the spuriously bluish-lilac bushman]
   "...insolvent states can always default on or repudiate their respective debts even without a federal law authorizing them to do so."
   
   "Federal bankruptcy protections for states would protect governmental entities from fulfilling their obligations to private actors. That looks like federal-state collusion to deprive citizens of what they are owed. The purpose of a federal system is not to protect the rights of state governments, but to protect the rights of citizens."
   
   http://www.libertylawsite.org/liberty-forum/state-bankruptcy-and-the-federal-order/
5. 2017-07-04 at 4:29 AM UTC

   #25
   The Self Taught Man Black Hole

   Originally posted by -SpectraL "…insolvent states can always default on or repudiate their respective debts even without a federal law authorizing them to do so."
   
   "Federal bankruptcy protections for states would protect governmental entities from fulfilling their obligations to private actors. That looks like federal-state collusion to deprive citizens of what they are owed. The purpose of a federal system is not to protect the rights of state governments, but to protect the rights of citizens."
   
   http://www.libertylawsite.org/liberty-forum/state-bankruptcy-and-the-federal-order/

   
   Repudiate =/= declare bankruptcy
   
   Repudiating does not absolve you of your debt. States often do it to try and get the amount owed lower, NOT to try and get rid of their debts as a whole.