Will states file Bankruptcy?

[rockon]

This will cause panic in the streets. I have friends who are retires and sitting on the edge of their sets hoping this would not happen.
They finally mentioned the "B" word in public.


www.msnbc.msn.com/id/41188877/ns/business-the_new_york_times

[billisonboard]

People say they want government to be more like businesses and bankruptcy is a time honored action for businesses to get out of their obligations.

[Savoir Faire-Demogague in NJ]

Why would people be rioting in the streets? This would only affect govt workers.

[ugonow]

Lol.... who will the states the fat lazy union employees pension obligations on? Better not be the PBGC.

[rockon]

It actually has become a business strategy for many investment corporations who buy businesses, groom them with the intention of making money by taking them through bankruptcy. Apparently it's legal to intentionally set a place up for bankruptcy but not sure but what some of our rules should be reviewed to see if some abuse of protection is happening. Not sure how it would work out if states start doing it. If they do it makes you question if our Federal government could do it also.

[ugonow]

Why would people be rioting in the streets? This would only affect govt workers.

No police? No state business for private companies? I can see a day of reckoning.

[rockon]

It will affect everyone who is owed money from the state so there could be a lot of people impacted. I'm sure there will be many deals made ahead of the filing if it were to happen.

[billisonboard]

Jan 21, 2011 10:25:41 GMT -5 Savoir Faire-Demogague in NJ said:

Why would people be rioting in the streets? This would only affect govt workers.

Because govt workers aren't people? Or because govt workers won't riot?

[Savoir Faire-Demogague in NJ]

No police? No state business for private companies? I can see a day of reckoning

I do not see any of that happening. The only panic would be the leechers and moochers who live off of the govt dole.

[rockon]

Actually many of these will be people who worked for the state all their lives and are now living on the pension that was agreed to during their tenure while the states like our Federal government spent money and agreed to unrealistic contracts like a bunch of spoiled kids with a credit card.

[burnsattornincan]

Here is a beautiful comment from the msnbc article;

And Illinois is on the TOP of the list of states going belly up...and who was a Congressman of that state???.....Barack Husseio Oproblem is going to make sure that this country goes belly up with his job killing policies and his cost increase policies for everything from Health care to fuel has gone up....the cost of food is ski high....gas is $3.10 a gallon with fear that it will soon be $5.00 a gallon. Most floks health Insurance have increased by $200.00 a month. BO is a recipe for DISASTER.....who the heck ever thought it would be a good idea to put a trial community organizing lawyer in the White house?...we need someone with good busines sense not someone who NEVER has had a real job....Geeeez America think the next time you vote for a President.......

[billisonboard]

Jan 21, 2011 10:54:03 GMT -5 burnsattornincan said:

Here is a beautiful comment from the msnbc article;

And Illinois is on the TOP of the list of states going belly up...and who was a Congressman of that state???.....Barack Husseio Oproblem is going to make sure that this country goes belly up with his job killing policies and his cost increase policies for everything from Health care to fuel has gone up....the cost of food is ski high....gas is $3.10 a gallon with fear that it will soon be $5.00 a gallon. Most floks health Insurance have increased by $200.00 a month. BO is a recipe for DISASTER.....who the heck ever thought it would be a good idea to put a trial community organizing lawyer in the White house?...we need someone with good busines sense not someone who NEVER has had a real job....Geeeez America think the next time you vote for a President.......

Hmmmmmm. I read the article and didn't find where it said any of what burns... says it says. I think he just made it up.

[rockon]

So what affects if any do poster think we will see if this happens?

[fairlycrazy23]

Jan 21, 2011 10:29:20 GMT -5 rockon said:

It actually has become a business strategy for many investment corporations who buy businesses, groom them with the intention of making money by taking them through bankruptcy. Apparently it's legal to intentionally set a place up for bankruptcy but not sure but what some of our rules should be reviewed to see if some abuse of protection is happening. Not sure how it would work out if states start doing it. If they do it makes you question if our Federal government could do it also.

This all goes back to government since they control Bankruptcy laws.

But it goes beyond just the current and former workers, it would have a severe effect on the bond market, even if no state actually ever does declare bankruptcy.

But I'm not sure how some states are going to survive without drastic cuts, if they legally can't get out of paying pensions and such then they would just have to cut current services and/or raise taxes, making people up and leave causing the state to have even less revenue.

[frep]

He said it was a comment from the article so I assume he meant one of the comments from a reader at the bottom of the article. Not a quote from the article.

[Deleted]

Illinois just had a substantial personal income tax increase. This should help the state government. The people, not so much. billisonboard, burns said it was a comment from the article, not in the article itself.

[billisonboard]

Jan 21, 2011 11:07:57 GMT -5 frep said:

He said it was a comment from the article so I assume he meant one of the comments from a reader at the bottom of the article. Not a quote from the article.

So it was a comment "pertaining" to the article, not a comment "from" the article. Dang sloppy use of language by a barrister.

btw frep and all, the whole intent is simply to give grief where grief is well earned.

[verrip1]

"Will states file Bankruptcy?"

Before y'all solve that riddle, you kinda need to address this question:

"Can states file Bankruptcy?"

[ugonow]

And Illinois is on the TOP of the list of states going belly up...and who was a Congressman of that state???.....Barack Husseio Oproblem is going to make sure that this country goes belly up

All part of the agenda,my friend.First he bk'ed his state,now on to the country in his quest to make people dependent and join the one communist government world.

[frep]

Jan 21, 2011 11:18:30 GMT -5 verrip1 said:

"Will states file Bankruptcy?"

Before y'all solve that riddle, you kinda need to address this question:

"Can states file Bankruptcy?"

Currently no, but if you read the article it says that they are working on a way that would allow them to.

[Deleted]

Jan 21, 2011 11:15:14 GMT -5 billisonboard said:

Jan 21, 2011 11:07:57 GMT -5 frep said:

He said it was a comment from the article so I assume he meant one of the comments from a reader at the bottom of the article. Not a quote from the article.

So it was a comment "pertaining" to the article, not a comment "from" the article. Dang sloppy use of language by a barrister.

btw frep and all, the whole intent is simply to give grief where grief is well earned.

Depends what your meaning of the word "from" comes from.

[burnsattornincan]

So it was a comment "pertaining" to the article, not a comment "from" the article. Dang sloppy use of language by a barrister.

I saved you the humiliation yesterday by not pointing out a horribly worded sentence chock full of spelling and grammar mistakes, and you call yourself a teacher. Hope it was in phys-ed or something.

[rockon]

They are looking at making it a legal option but realistically if you run out of money you already are bankrupt. I think the up side is it may final force the point that we have to stop spending more money then we have. Maybe balanced budget amendments will be the new norm. Hopefully they apply it to the federal level as well.

[Deleted]

What does this mean?? Does it mean teachers, cops, firemen, all that type, will not get their retirement money?? That could be a disaster for people that never made a lot of money and were counting on that, couldn't it? Would this mean NOW, or changing things for the future, or what?

[ugonow]

I do not see any of that happening. The only panic would be the leechers and moochers who live off of the govt dole.

Our biggest customer is the state. Many companies exist on state business or the states employees patronage. To think it would not effect anyone but welfare reciepients is foolish imo.

[fairlycrazy23]

Jan 21, 2011 11:39:49 GMT -5 @krickitt said:

What does this mean?? Does it mean teachers, cops, firemen, all that type, will not get their retirement money?? That could be a disaster for people that never made a lot of money and were counting on that, couldn't it? Would this mean NOW, or changing things for the future, or what?

It is more complicated than just not paying retiree benefits, states have other obligations beyond employee benefits, it would have a dramatic effect on the bond market which would make it very difficult for states to borrow money to fund capital projects, plus it could screw the retirement of non public workers who have invested in bonds.

Vendors would likely get payed on an ongoing bases, however, they could lose out of they where already owed a lot of money

[billisonboard]

Jan 21, 2011 11:35:42 GMT -5 burnsattornincan said:

So it was a comment "pertaining" to the article, not a comment "from" the article. Dang sloppy use of language by a barrister.

I saved you the humiliation yesterday by not pointing out a horribly worded sentence chock full of spelling and grammar mistakes, and you call yourself a teacher. Hope it was in phys-ed or something.

I would appreciate you calling my attention to such a lapse. Mistakes are an opportunity to grow and improve, not a source of humiliation for me. Also, I rarely call myself a teacher. I do point out at times that I have been a teacher in the past. I was actually at best a rather adequate teacher (I kept forgetting to take attendence, couldn't stand to be in the gym for pep rallies, and never get into grading people). That is why I left the classroom and moved into a job that allows me to be the more than adequate educator that I am very capable of being.