/biz/ - Business & Finance

States are going bankrupt. Because states and municipalities cannot print money like the federal government, they have high yield bonds. However, soon they cannot pay them. They will issue a frenzy of new bonds to pay for the explosion of unemployment and social services, but then these bonds will immediately default since they cannot pay. The only "solution" would be to issue more useless bonds or raise taxes, or beg the federal government. All of these are disastrous. Government pensions will be suspended and those comfy government jobs will evaporate.