AMEN!

Once California defaults, it’s hard to see any other state raising private general-obligation funds at any kind of interest rate it would consider acceptable.

Statements like this, from independent people or government officials, are somewhat dumb. Yes, states will not be able to borrow money at the ideal rates they want to after they start defaulting on their other borrowing, just like subprime borrowers with bad credit histories cannot borrow lots of money at low rates: that’s the whole fricken point of allowing risk-based lending rates. If you’re a risky borrower, you pay higher rates. If you want lower rates, you don’t go crying to your mommy or uncle [Sam] about how the unfair lenders won’t shovel money at your subprime gaping maw, you fix you g-d finances so you’re less of a risk. There’s no Constitutional guarantee that you can continue to borrow money at below-prime rates as you shovel it into the raging inferno of wasteful spending and corruption, and I’m sick of commentators and politicians crying like there is.

If I were the federal government, I’d be telling California (and other states) to stop crying about the inevitable consequences of their gross fiscal mismanagement, and start adjusting to the new reality: you are a subprime borrower, and if the rates are not acceptable, stop borrowing money to paper over your problems.

I don’t think a California default would effect other states that aren’t as stupid with illegals, criminals and the homeless.

Michigan is probably also going to default but their destructive policies are not going to effect other states.

A lot of the tax/social policies really need to be even with other states or you get in this mess.

Michigan and Califonia might end up being an object lesson for everyone that survives.

to that crazy hack, Heinlein. And we didn’t vote not to pay for it, we voted down those atrocious short-term-fake-fix-its. The g-d legislature better do its job; this involves both cuts and taxes. Preferably cuts in the overpopulation in our prisons for non-violent crimes, and taxes on marijuana.