The idea of states filing for bankruptcy

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sevenmmm's picture
sevenmmm
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Posts: 108
The idea of states filing for bankruptcy

This topic has been raised in Congress with a member asking BB about the possibility. Here is an excerpt from the NY Times article:

The biggest surprise may await the holders of a state’s general obligation bonds. Though widely considered the strongest credit of any government, they can be treated as unsecured credits, subject to reduction, under Chapter 9.

http://www.nytimes.com/2011/01/21/business/economy/21bankruptcy.html?pagewanted=1&_r=2

I would also be worried if you were a contractor working for those states with budget shortfalls.

skyline1241's picture
skyline1241
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Joined: Feb 21 2011
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sevenmmm wrote: This topic
sevenmmm wrote:

This topic has been raised in Congress with a member asking BB about the possibility. Here is an excerpt from the NY Times article:

The biggest surprise may await the holders of a state’s general obligation bonds. Though widely considered the strongest credit of any government, they can be treated as unsecured credits, subject to reduction, under Chapter 9.

http://www.nytimes.com/2011/01/21/business/economy/21bankruptcy.html?pagewanted=1&_r=2

I would also be worried if you were a contractor working for those states with budget shortfalls.

Such a very amazing link!
Thanks you for the post.

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