Seniors Lose 24% of Buying Power Since 2000

[Zoocat]

Not necessarily. But IMO, if you want someone to take you seriously, then use seriously correct language. Don't call States 'bankrupt' because they are running a deficit.
-ERD50

Also, a state cannot legally file for bankruptcy only municipalities can do so. But there is a bill before the California Gov. that would prevent municipalities from declaring bankruptcy, except with the approval of the state Debt Commission.
"If the governor signs Assembly Bill 155, it would place a hurdle in the path of filing for Chapter 9 municipal bankruptcy. The bill stipulates that a city may only file for bankruptcy with the approval of the California Debt Investment Advisory Commission, which provides information on debt to public agencies."
Los Angeles may not be able to file for bankruptcy - Jun. 2, 2010

I'm not sure what a state could do if they can't pay all their bills and obligations. They can't hand out IOUs forever. Would they have to restructure themselves? The prospect of the California legislature accomplishing that is very dim. Who else could legally take control of the state's finances?

 

[M Paquette]

"If the governor signs Assembly Bill 155, it would place a hurdle in the path of filing for Chapter 9 municipal bankruptcy. The bill stipulates that a city may only file for bankruptcy with the approval of the California Debt Investment Advisory Commission, which provides information on debt to public agencies."
Los Angeles may not be able to file for bankruptcy - Jun. 2, 2010

This bill was amended in committee to make the California Debt and Investment Advisory Commission findings advisory, rather than binding. A municipality may re-apply, or hold a public hearing to override the commission.

Without that change, we would have municipalities defaulting and dropping into creditor collections without protection of bankruptcy, a fairly foolish state. Blocking bankruptcy proceedings doesn't magically create funds to pay debt or other obligations. It simply means that where bankruptcy could have been used to do an orderly adjustment and renegotiations, we now will have a creditor free-for-all. "Vallejo Sanitation & Flood Control District, a division of PIMCO," anyone? That doesn't do PIMCO or Vallejo any good.

http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0151-0200/ab_155_cfa_20100602_161608_sen_floor.html

http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0151-0200/ab_155_bill_20100601_amended_sen_v94.html