OT: Estimated state budget deficit reaches $25.4 billion

[PatentGuy]

My understanding is that a state cannot voluntarily seek or be forced into bankruptcy in federal court, although a Chapter 7 liquidation of California would entail some amusing trustee sales …

While some politicians may admit that California is, ummm, “underwater,” the bottom line is that California can simply default on its debts. In fact, it may be in California’s best interest to simply “walk away”.

Maybe some enterprising individual will start a web-based business that advises states like California, Nevada, Illinois, and many others, on how to “just walk away” and send the state assembly keys to the bondholders and pensioners (“jingle mail”). Be sure to collect your fee in advance.

[BigGovernmentIsGood]

[quote=paramount]If California declared bankruptcy, at that moment wouldn’t all state issued bonds need to be paid? Assuming that is correct where would that money come from?[/quote]

Good lord. You conservatives never cease to amaze me with your ignorance. Please stop watching FoxNews, Rush Limbaugh, Glen Beck and other conservative sources that are making you more retarded by the day and learn to read fact-based news sources like Slate and HuffingtonPost.

From Slate:

Can a state declare bankruptcy? Can a country?

No and no. Chapter 9 of the U.S. bankruptcy code allows individuals and municipalities (cities, towns, villages, etc.) to declare bankruptcy. But that doesn’t include states. (The statute defines “municipality” as a “political subdivision or public agency or instrumentality of a State”—that is, not a state itself.) For one thing, states are said to have sovereign immunity, as protected by the 11th Amendment, which means they can’t be sued. In other words, they don’t need any protection from angry creditors who would take them to court for failing to pay their debts. As a result, states can simply borrow money ad infinitum.

Say the state can’t make its debt payments, and no one will lend it any more money. In that case, the federal government can step in and put the state into receivership. This would involve the assignment of an accountant to manage the state’s debt, overseen by a judge. It would be a lot like bankruptcy, except instead of following a structured set of steps—informing creditors, appointing creditors’ committees, a 120-day window to file a plan, etc.—a receiver has the authority to force creditors to renegotiate loans in a speedy fashion. However, the accountant in charge would not have the power to make decisions about the state’s budget, such as which programs needed to be cut and which taxes had to be raised. (No state has ever gone into receivership.)

http://www.slate.com/id/2246915/

If you have trouble with all the multi-syllable words, consult dictionary.com for help.

[BigGovernmentIsGood]

[quote=paramount]If California declared bankruptcy, at that moment wouldn’t all state issued bonds need to be paid? Assuming that is correct where would that money come from?[/quote]

Good lord. You conservatives never cease to amaze me with your ignorance. Please stop watching FoxNews, Rush Limbaugh, Glen Beck and other conservative sources that are making you more retarded by the day and learn to read fact-based news sources like Slate and HuffingtonPost.

From Slate:

Can a state declare bankruptcy? Can a country?

No and no. Chapter 9 of the U.S. bankruptcy code allows individuals and municipalities (cities, towns, villages, etc.) to declare bankruptcy. But that doesn’t include states. (The statute defines “municipality” as a “political subdivision or public agency or instrumentality of a State”—that is, not a state itself.) For one thing, states are said to have sovereign immunity, as protected by the 11th Amendment, which means they can’t be sued. In other words, they don’t need any protection from angry creditors who would take them to court for failing to pay their debts. As a result, states can simply borrow money ad infinitum.

Say the state can’t make its debt payments, and no one will lend it any more money. In that case, the federal government can step in and put the state into receivership. This would involve the assignment of an accountant to manage the state’s debt, overseen by a judge. It would be a lot like bankruptcy, except instead of following a structured set of steps—informing creditors, appointing creditors’ committees, a 120-day window to file a plan, etc.—a receiver has the authority to force creditors to renegotiate loans in a speedy fashion. However, the accountant in charge would not have the power to make decisions about the state’s budget, such as which programs needed to be cut and which taxes had to be raised. (No state has ever gone into receivership.)

http://www.slate.com/id/2246915/

If you have trouble with all the multi-syllable words, consult dictionary.com for help.

[BigGovernmentIsGood]

[quote=paramount]If California declared bankruptcy, at that moment wouldn’t all state issued bonds need to be paid? Assuming that is correct where would that money come from?[/quote]

Good lord. You conservatives never cease to amaze me with your ignorance. Please stop watching FoxNews, Rush Limbaugh, Glen Beck and other conservative sources that are making you more retarded by the day and learn to read fact-based news sources like Slate and HuffingtonPost.

From Slate:

Can a state declare bankruptcy? Can a country?

No and no. Chapter 9 of the U.S. bankruptcy code allows individuals and municipalities (cities, towns, villages, etc.) to declare bankruptcy. But that doesn’t include states. (The statute defines “municipality” as a “political subdivision or public agency or instrumentality of a State”—that is, not a state itself.) For one thing, states are said to have sovereign immunity, as protected by the 11th Amendment, which means they can’t be sued. In other words, they don’t need any protection from angry creditors who would take them to court for failing to pay their debts. As a result, states can simply borrow money ad infinitum.

Say the state can’t make its debt payments, and no one will lend it any more money. In that case, the federal government can step in and put the state into receivership. This would involve the assignment of an accountant to manage the state’s debt, overseen by a judge. It would be a lot like bankruptcy, except instead of following a structured set of steps—informing creditors, appointing creditors’ committees, a 120-day window to file a plan, etc.—a receiver has the authority to force creditors to renegotiate loans in a speedy fashion. However, the accountant in charge would not have the power to make decisions about the state’s budget, such as which programs needed to be cut and which taxes had to be raised. (No state has ever gone into receivership.)

http://www.slate.com/id/2246915/

If you have trouble with all the multi-syllable words, consult dictionary.com for help.

[BigGovernmentIsGood]

[quote=paramount]If California declared bankruptcy, at that moment wouldn’t all state issued bonds need to be paid? Assuming that is correct where would that money come from?[/quote]

Good lord. You conservatives never cease to amaze me with your ignorance. Please stop watching FoxNews, Rush Limbaugh, Glen Beck and other conservative sources that are making you more retarded by the day and learn to read fact-based news sources like Slate and HuffingtonPost.

From Slate:

Can a state declare bankruptcy? Can a country?

No and no. Chapter 9 of the U.S. bankruptcy code allows individuals and municipalities (cities, towns, villages, etc.) to declare bankruptcy. But that doesn’t include states. (The statute defines “municipality” as a “political subdivision or public agency or instrumentality of a State”—that is, not a state itself.) For one thing, states are said to have sovereign immunity, as protected by the 11th Amendment, which means they can’t be sued. In other words, they don’t need any protection from angry creditors who would take them to court for failing to pay their debts. As a result, states can simply borrow money ad infinitum.

Say the state can’t make its debt payments, and no one will lend it any more money. In that case, the federal government can step in and put the state into receivership. This would involve the assignment of an accountant to manage the state’s debt, overseen by a judge. It would be a lot like bankruptcy, except instead of following a structured set of steps—informing creditors, appointing creditors’ committees, a 120-day window to file a plan, etc.—a receiver has the authority to force creditors to renegotiate loans in a speedy fashion. However, the accountant in charge would not have the power to make decisions about the state’s budget, such as which programs needed to be cut and which taxes had to be raised. (No state has ever gone into receivership.)

http://www.slate.com/id/2246915/

If you have trouble with all the multi-syllable words, consult dictionary.com for help.

[BigGovernmentIsGood]

[quote=paramount]If California declared bankruptcy, at that moment wouldn’t all state issued bonds need to be paid? Assuming that is correct where would that money come from?[/quote]

Good lord. You conservatives never cease to amaze me with your ignorance. Please stop watching FoxNews, Rush Limbaugh, Glen Beck and other conservative sources that are making you more retarded by the day and learn to read fact-based news sources like Slate and HuffingtonPost.

From Slate:

Can a state declare bankruptcy? Can a country?

No and no. Chapter 9 of the U.S. bankruptcy code allows individuals and municipalities (cities, towns, villages, etc.) to declare bankruptcy. But that doesn’t include states. (The statute defines “municipality” as a “political subdivision or public agency or instrumentality of a State”—that is, not a state itself.) For one thing, states are said to have sovereign immunity, as protected by the 11th Amendment, which means they can’t be sued. In other words, they don’t need any protection from angry creditors who would take them to court for failing to pay their debts. As a result, states can simply borrow money ad infinitum.

Say the state can’t make its debt payments, and no one will lend it any more money. In that case, the federal government can step in and put the state into receivership. This would involve the assignment of an accountant to manage the state’s debt, overseen by a judge. It would be a lot like bankruptcy, except instead of following a structured set of steps—informing creditors, appointing creditors’ committees, a 120-day window to file a plan, etc.—a receiver has the authority to force creditors to renegotiate loans in a speedy fashion. However, the accountant in charge would not have the power to make decisions about the state’s budget, such as which programs needed to be cut and which taxes had to be raised. (No state has ever gone into receivership.)

http://www.slate.com/id/2246915/

If you have trouble with all the multi-syllable words, consult dictionary.com for help.

[PatentGuy]

Is this business (stated all over the media, not just slate) about how the federal government “can step in and put the state into receivership” somewhere in the Constitution?

In any event, the moment the CA bond holders have any real sense of imminent default by California that will not be bailed out by the feds, the interest rates on CA bonds will skyrocket, and CA is done.

We can each speculate if/when this happens and whether the fed will bail out the states (more accurately: whether the fed will bail out the bond holders and government employee pensions).

[PatentGuy]

Is this business (stated all over the media, not just slate) about how the federal government “can step in and put the state into receivership” somewhere in the Constitution?

In any event, the moment the CA bond holders have any real sense of imminent default by California that will not be bailed out by the feds, the interest rates on CA bonds will skyrocket, and CA is done.

We can each speculate if/when this happens and whether the fed will bail out the states (more accurately: whether the fed will bail out the bond holders and government employee pensions).

[PatentGuy]

Is this business (stated all over the media, not just slate) about how the federal government “can step in and put the state into receivership” somewhere in the Constitution?

In any event, the moment the CA bond holders have any real sense of imminent default by California that will not be bailed out by the feds, the interest rates on CA bonds will skyrocket, and CA is done.

We can each speculate if/when this happens and whether the fed will bail out the states (more accurately: whether the fed will bail out the bond holders and government employee pensions).

[PatentGuy]

Is this business (stated all over the media, not just slate) about how the federal government “can step in and put the state into receivership” somewhere in the Constitution?

In any event, the moment the CA bond holders have any real sense of imminent default by California that will not be bailed out by the feds, the interest rates on CA bonds will skyrocket, and CA is done.

We can each speculate if/when this happens and whether the fed will bail out the states (more accurately: whether the fed will bail out the bond holders and government employee pensions).

[PatentGuy]

Is this business (stated all over the media, not just slate) about how the federal government “can step in and put the state into receivership” somewhere in the Constitution?

In any event, the moment the CA bond holders have any real sense of imminent default by California that will not be bailed out by the feds, the interest rates on CA bonds will skyrocket, and CA is done.

We can each speculate if/when this happens and whether the fed will bail out the states (more accurately: whether the fed will bail out the bond holders and government employee pensions).

[Coronita]

[quote=BigGovernmentIsGood][quote=paramount]If California declared bankruptcy, at that moment wouldn’t all state issued bonds need to be paid? Assuming that is correct where would that money come from?[/quote]

Good lord. You conservatives never cease to amaze me with your ignorance. Please stop watching FoxNews, Rush Limbaugh, Glen Beck and other conservative sources that are making you more retarded by the day and learn to read fact-based news sources like Slate and HuffingtonPost.

From Slate:

Can a state declare bankruptcy? Can a country?

No and no. Chapter 9 of the U.S. bankruptcy code allows individuals and municipalities (cities, towns, villages, etc.) to declare bankruptcy. But that doesn’t include states. (The statute defines “municipality” as a “political subdivision or public agency or instrumentality of a State”—that is, not a state itself.) For one thing, states are said to have sovereign immunity, as protected by the 11th Amendment, which means they can’t be sued. In other words, they don’t need any protection from angry creditors who would take them to court for failing to pay their debts. As a result, states can simply borrow money ad infinitum.

Say the state can’t make its debt payments, and no one will lend it any more money. In that case, the federal government can step in and put the state into receivership. This would involve the assignment of an accountant to manage the state’s debt, overseen by a judge. It would be a lot like bankruptcy, except instead of following a structured set of steps—informing creditors, appointing creditors’ committees, a 120-day window to file a plan, etc.—a receiver has the authority to force creditors to renegotiate loans in a speedy fashion. However, the accountant in charge would not have the power to make decisions about the state’s budget, such as which programs needed to be cut and which taxes had to be raised. (No state has ever gone into receivership.)

http://www.slate.com/id/2246915/

If you have trouble with all the multi-syllable words, consult dictionary.com for help.[/quote]

I’m curious BGIG…Aside from having a Masters in Copy and Paste, what is your educational background? Just wondering if you want to go toe and toe with some of the conservatives you that constantly rail against. And in case you missed it… scoreboard buddy…the party you’re infatuated with lost the House. Get over it…..

[Coronita]

[quote=BigGovernmentIsGood][quote=paramount]If California declared bankruptcy, at that moment wouldn’t all state issued bonds need to be paid? Assuming that is correct where would that money come from?[/quote]

Good lord. You conservatives never cease to amaze me with your ignorance. Please stop watching FoxNews, Rush Limbaugh, Glen Beck and other conservative sources that are making you more retarded by the day and learn to read fact-based news sources like Slate and HuffingtonPost.

From Slate:

Can a state declare bankruptcy? Can a country?

No and no. Chapter 9 of the U.S. bankruptcy code allows individuals and municipalities (cities, towns, villages, etc.) to declare bankruptcy. But that doesn’t include states. (The statute defines “municipality” as a “political subdivision or public agency or instrumentality of a State”—that is, not a state itself.) For one thing, states are said to have sovereign immunity, as protected by the 11th Amendment, which means they can’t be sued. In other words, they don’t need any protection from angry creditors who would take them to court for failing to pay their debts. As a result, states can simply borrow money ad infinitum.

Say the state can’t make its debt payments, and no one will lend it any more money. In that case, the federal government can step in and put the state into receivership. This would involve the assignment of an accountant to manage the state’s debt, overseen by a judge. It would be a lot like bankruptcy, except instead of following a structured set of steps—informing creditors, appointing creditors’ committees, a 120-day window to file a plan, etc.—a receiver has the authority to force creditors to renegotiate loans in a speedy fashion. However, the accountant in charge would not have the power to make decisions about the state’s budget, such as which programs needed to be cut and which taxes had to be raised. (No state has ever gone into receivership.)

http://www.slate.com/id/2246915/

If you have trouble with all the multi-syllable words, consult dictionary.com for help.[/quote]

I’m curious BGIG…Aside from having a Masters in Copy and Paste, what is your educational background? Just wondering if you want to go toe and toe with some of the conservatives you that constantly rail against. And in case you missed it… scoreboard buddy…the party you’re infatuated with lost the House. Get over it…..

[Coronita]

[quote=BigGovernmentIsGood][quote=paramount]If California declared bankruptcy, at that moment wouldn’t all state issued bonds need to be paid? Assuming that is correct where would that money come from?[/quote]

Good lord. You conservatives never cease to amaze me with your ignorance. Please stop watching FoxNews, Rush Limbaugh, Glen Beck and other conservative sources that are making you more retarded by the day and learn to read fact-based news sources like Slate and HuffingtonPost.

From Slate:

Can a state declare bankruptcy? Can a country?

No and no. Chapter 9 of the U.S. bankruptcy code allows individuals and municipalities (cities, towns, villages, etc.) to declare bankruptcy. But that doesn’t include states. (The statute defines “municipality” as a “political subdivision or public agency or instrumentality of a State”—that is, not a state itself.) For one thing, states are said to have sovereign immunity, as protected by the 11th Amendment, which means they can’t be sued. In other words, they don’t need any protection from angry creditors who would take them to court for failing to pay their debts. As a result, states can simply borrow money ad infinitum.

Say the state can’t make its debt payments, and no one will lend it any more money. In that case, the federal government can step in and put the state into receivership. This would involve the assignment of an accountant to manage the state’s debt, overseen by a judge. It would be a lot like bankruptcy, except instead of following a structured set of steps—informing creditors, appointing creditors’ committees, a 120-day window to file a plan, etc.—a receiver has the authority to force creditors to renegotiate loans in a speedy fashion. However, the accountant in charge would not have the power to make decisions about the state’s budget, such as which programs needed to be cut and which taxes had to be raised. (No state has ever gone into receivership.)

http://www.slate.com/id/2246915/

If you have trouble with all the multi-syllable words, consult dictionary.com for help.[/quote]

I’m curious BGIG…Aside from having a Masters in Copy and Paste, what is your educational background? Just wondering if you want to go toe and toe with some of the conservatives you that constantly rail against. And in case you missed it… scoreboard buddy…the party you’re infatuated with lost the House. Get over it…..

[Coronita]

[quote=BigGovernmentIsGood][quote=paramount]If California declared bankruptcy, at that moment wouldn’t all state issued bonds need to be paid? Assuming that is correct where would that money come from?[/quote]

Good lord. You conservatives never cease to amaze me with your ignorance. Please stop watching FoxNews, Rush Limbaugh, Glen Beck and other conservative sources that are making you more retarded by the day and learn to read fact-based news sources like Slate and HuffingtonPost.

From Slate:

Can a state declare bankruptcy? Can a country?

No and no. Chapter 9 of the U.S. bankruptcy code allows individuals and municipalities (cities, towns, villages, etc.) to declare bankruptcy. But that doesn’t include states. (The statute defines “municipality” as a “political subdivision or public agency or instrumentality of a State”—that is, not a state itself.) For one thing, states are said to have sovereign immunity, as protected by the 11th Amendment, which means they can’t be sued. In other words, they don’t need any protection from angry creditors who would take them to court for failing to pay their debts. As a result, states can simply borrow money ad infinitum.

Say the state can’t make its debt payments, and no one will lend it any more money. In that case, the federal government can step in and put the state into receivership. This would involve the assignment of an accountant to manage the state’s debt, overseen by a judge. It would be a lot like bankruptcy, except instead of following a structured set of steps—informing creditors, appointing creditors’ committees, a 120-day window to file a plan, etc.—a receiver has the authority to force creditors to renegotiate loans in a speedy fashion. However, the accountant in charge would not have the power to make decisions about the state’s budget, such as which programs needed to be cut and which taxes had to be raised. (No state has ever gone into receivership.)

http://www.slate.com/id/2246915/

If you have trouble with all the multi-syllable words, consult dictionary.com for help.[/quote]

I’m curious BGIG…Aside from having a Masters in Copy and Paste, what is your educational background? Just wondering if you want to go toe and toe with some of the conservatives you that constantly rail against. And in case you missed it… scoreboard buddy…the party you’re infatuated with lost the House. Get over it…..

[Author]

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