4 ms·

https://en.wikipedia.org/wiki/Sovereign_immunity_in_the_United_States https://en.wikipedia.org/wiki/Sovereign_immunity_in_the_Unit...

• alexanderstears 9y ago
  That's a mechanism that might extend bankruptcy to the States at some point, but American States have always paid their debts to the financial market.
  • voidlogic 9y ago
    >American States have always paid their debts to the financial market. I don't contest that, but what I am saying is, like National governments they can dismiss their debt. Although, of course they would have non existent credit after such an event. The States unlike some European governments are not used to functioning in the absence of borrowing.