shiraz9944

That's how it works in a "functional" state but this is a state without a budget or enough tax revenue to cover their interest payments, let alone pay the bonds back. Sure lower the yield so they pay less interest that they aren't paying already but NOBODY will buy more bonds now so they can't issue new ones to raise funds and that is the only way to raise enough revenue to get out of this hole. They have borrowed so super heavily from the state run pension funds, they are now unable to pay people's retirement pensions or medical benefits promised. Over 200 billion borrowed to keep the state running. That is gone now too.

It's you that obviously don't understand a state has never and cannot according to federal law file for Bankruptcy protection. It is an impossibility and won't happen.

Bladewire, this has been going on for 4 years now. NO budget for 4 years....so that is trumps fault LOL. It's the Gov. Repub and legislature Dems. They both are at fault here. Almost criminally. When the lottery bans you, man that is sad. Did you read bloomberg's article or Reuters? There aren't even remotely enough tax revenues coming to even stay even on operating costs and interest on existing bonds at this point. They can't issue new bonds now that their rating is so terrible so they are really really fucked.

As much as I hate to say it the FED will have to step in and fix this. There is no way out for them. They need to beg the fed for a HUGE bailout like in 2008 but on a state scale. If that is the case then, the entire legislature must go and the governor must step down. Special elections for all officials.