The usual suspects, working to make sure you have even less:
Proponents of the measure — which include Americans for Tax Reform, a Washington lobby group that fights tax increases — said the legislation is desperately needed to clear the way for struggling states to slash costs before they go belly up, and should be regarded as a preemptive move that could preclude the need for massive federal bailouts.
Former House Speaker and possible GOP presidential contender Newt Gingrich is pushing for federal legislation giving financially strapped states the right to file for bankruptcy and renege on pension and other benefit promises made to state employees.
“It’s in the short-term and long-term interests of government workers and taxpayers to start those reforms now, rather than having to pick up the pieces after a crash landing,” ATR President Grover Norquist said in an interview.
“We are working with people inside and outside of Congress on this issue,” said Joe DeSantis, a spokesman for Mr. Gingrich, whom Mr. DeSantis said is considering a bid to be the Republican presidential candidate in 2012.
Yeah, I’ll just bet you are, Joe. I’ll just bet you are.
Newt Gingrich and Grover Norquist. Two names we can trust!
…”Former House Speaker and possible GOP presidential contender Newt Gingrich is pushing for federal legislation giving financially strapped states the right to file for bankruptcy and renege on pension and other benefit promises made to state employees.”…
Hmmm, does that include pensions for governors, legislators, judges and other elected state officials? Dollars to doughnuts it does not, and I would really like to know – is Newt drawing a pension for his days as a House Representative & House Speaker and/or is he eligible for same?
If a state goes bankrupt can it default on bonds?
That’s a really good question. I don’t know. I don’t see why not.
So which one is the really good question? I’d research this sh*t but given no access to the archives have no clue as to how to. I do know libraries and am a quick reader, however…
Hard to say, because the law allowing state bankruptcies hasn’t even been written yet. My guess is that it will be written to avoid pissing off bankers — but I don’t know how that will be done, or even if it can.