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I wonder why in the US states can go bankrupt, states much larger than Greece: * Without any impact on the US $ * Without any foreign country noticing * Withou
by JustMeMe 11y ago
I wonder why in the US states can go bankrupt, states much larger than Greece:
* Without any impact on the US $
* Without any foreign country noticing
* Without pictures of suffering people
What does the EU need to change? Is there cross financing in the US to states, e.g. California, which the EU does not want to do for Greece?
- gonvaled 11y ago> I wonder why in the US states can go bankrupt, states much larger than Greece: Is this true? Has any US state gone bankrupt? Can you share a link? The closest I know was California having some financial trouble, but no bankrupt was declared, afaik. > Without any impact on the US $ The $ is no normal currency: it is the world currency. Most international contracts are done in $. By chance (if you are charitable) or by design (if you tend to conspiracy theories, like me), the $ gives the US a huge financial advantage. The markets are rigged in favor of the $.
- saryant 11y agoState governments cannot enter bankruptcy. It's prohibited by both the federal bankruptcy code and the Constitution (states can't repudiate their debt under the contracts clause).
- dragonwriter 11y ago> I wonder why in the US states can go bankrupt They can't. State agencies, and subdivisions of States, can enter into bankruptcy under federal municipal bankruptcy provisions, but States as such cannot. There have been some very loose discussions about the desirability of adding State bankruptcy provisions to the federal bankruptcy code over the last several years, but nothing that I am aware of even approaching a serious effort to do so.