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> filing for bankruptcy Illinois has significant assets and the power of taxation over a large economy. I can't see a court just allowing them to discharge the
by dmm 9y ago
> filing for bankruptcy
Illinois has significant assets and the power of taxation over a large economy. I can't see a court just allowing them to discharge their obligations. It's also not clear that states _can_ declare bankruptcy.
I think a federal bailout of some kind is more likely, not a better idea necessarily, but more likely.
- JumpCrisscross 9y ago> a federal bailout of some kind is more likely At least in my D.C. circles, the Puerto Rico bail-out bill was framed as a dry run for Illinios.
- lotsofpulp 9y agoI think we will see a federal bail out, plus benefit cuts, plus Illinois privatizing some government assets. I would bet Puetro Rico's pension recipients get their benefits cut also. http://abcnews.go.com/International/wireStory/puerto-rico-rejects-pension-cuts-sought-federal-board-53973860 http://abcnews.go.com/International/wireStory/puerto-rico-re... We will all pay in the end though, via the reduced value of the US dollar. Just have to make sure we stay ahead of inflation, and try not to live in the jurisdictions with the worst finances, because they're quality of life will probably steadily erode.