Bankruptcy or Default and it's Heretic meanings for a bail in for all
Despite McConnell comment, states can’t go bankrupt, only default?
Bankruptcy is messy and chaotic, but defaulting could be worse.
There aren’t many examples of state default. The last state to stop paying its bondholders was Arkansas in 1933. Puerto Rico, a territory, recently defaulted on some of its debts, deepening an ongoing financial catastrophe on the island.
The one clear take away: States that default would face significantly higher interest rates on subsequent bond issuances, if they could borrow at all. According to a 2016 paper from the Federal Reserve Bank of Cleveland, after its 1933 default Arkansas reached a deal quickly with its bondholders, but “the state’s reputation suffered for a long time and it was unable to return to credit markets without federal assistance.”
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latest i saw was the city of chitcago owed $63 BILLION...maybe their new citizen on the shore can kick in some to help ???? 0
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