Policymakers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.This is just another reason to not be buying any government issued bonds. The funny thing is that no matter how much evidence that shows how screwed up government is and how it fails at everything it attempts most people still look to politicians to solve problems.
Bankruptcy could permit a state to alter its contractual promises to retirees, which are often protected by state constitutions, and it could provide an alternative to a no-strings bailout. Along with retirees, however, investors in a state’s bonds could suffer, possibly ending up at the back of the line as unsecured creditors.
Saturday, January 22, 2011
Government looking for way to stiff people through bankruptcy
Lets review how American government works. People run for office by raising funds from "campaign contributors". Of course these campaign contributors give money to these politicians because they are so wonderful. It certainly could not be because they want something in return. Of course these same politicians do what is best for their contributors and supporters. If what they do is detrimental to the nation as a whole, oh well the average person can't and won't do anything about it. After decades of this crap the nation has more debt than can ever be paid back, we are facing an entitlement tsunami totally over $100 trillion, we have no energy policy, most of industry has been shipped overseas, and standards of living are declining for a large portion of the population. Now that the politicians have gotten us into this hole they are looking to get out of this by allowing states to file for bankruptcy so that the politicians can worm their way out of having to make tough decisions which may lead to them losing their jobs. Here is a link to the article: