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State Of California declares bankruptcy.. what would happen?


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2011 Feb 9, 4:06am   1,328 views  4 comments

by LAO   ➕follow (0)   💰tip   ignore  

What would happen to state employees pensions? Bondholders ect?

How would CA housing market be affected?

Would this ever feasibly happen?

I looked into it and it appears a state can't declare bankruptcy... But they can go into "receivership" where they force creditors to negotiate down debts. No state has ever gone into "receivership" before though.. so who knows exactly what would happen.

#housing

Comments 1 - 4 of 4        Search these comments

1   bubblesitter   2011 Feb 9, 1:12pm  

There no question of bankruptcy but living standards going to hell is possible.

2   Â¥   2011 Feb 9, 1:57pm  

http://www.usgovernmentspending.com/year2011_CA.html

$465B spending for 37M people.

Divided into $30,000 chunks, thats 15.5M people getting $30,000 in services a year.

Or in $80,000 salaries, that's 5.8 million $80,000/yr state/local jobs ? ? ?

Out of 14M jobs total ? ? ?

40% of the jobs in this state are government-cheese?

gah. These numbers never make any sense when I divide them out like this.

Pensions are "only" $40B so that's not it.

3   elliemae   2011 Feb 9, 2:47pm  

If Calif declared bk, they'd have a massive going out of business sale. You'd be able to buy public figures at a discount. ;)

4   terriDeaner   2011 Feb 9, 3:06pm  

Well now, I thought that the Constitution prevented this... LA renter could you please clarify what a "receivership" is?

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