Monday, November 16, 2009

I Have Seen the Future, and it is Bankrupt

"I looked as hard as I could at how states could declare bankruptcy," said Michael Genest, director of the California Department of Finance who is stepping down at the end of the year. "I literally looked at the federal constitution to see if there was a way for states to return to territory status..."

A state looking to reorganize its relationship to the central government? Interesting.

I had expected more secessionist tendencies at this point than we have seen. Granted, we have a long way down to go, but an initial desire for Uncle Sugar to take back California as a territory (and, I assume, take on its finances? I am not versed on how territories operated. Hmmm) to make all that ooky debt go away and save California from her self-inflected pain is not the craziest thing I've seen come out of their debt crisis.

h/t Calculated Risk

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