1)What would happen if for some reason, (arbitrary number) 5 states declared bankruptcy within a couple months of each other?
1a)Is there any reason you can think of that an administration might find it helpful to assist the bankrupting of these states?
my present position:
- At the very least the states would be court mandated to borrow money from the federal government, or possibly some 3rd party (large bank, IMF, not really sure what this might be)
and then have to recertify thier budget, with outside oversight.
maybe similar to the personal bankruptcy proceeding where you make a payment plan, chapter 11, I think.
1a) If the feds gave a substantial loan to 5 different states, they would presumably be able to put it on the books as owed money, thus offsetting some of its debt from that time, (this doesnt help if a 3rd party is involved) it would also give them the option to starve certain programs which less than cared for by those in a position to force the issue.
***Disclaimer:
This is NOT in regards to any particular administration, this is strictly hypothetical, fueled entirely by my own twisted readding agenda.
thank you.