Is this the year that the state of Michigan will go bankrupt?
March 22, 2010
It's the question that needs to be asked: Is this the year that the state of Michigan will go bankrupt because of its inability to reach a consensus on the state budget?
What prompts the question is a blog post by Nolan Finley of the Detroit News who points to the states of New York and California which are unable to make their budgets. They won't cut and they won't raise taxes. What's next?
Finley predicts that because of their size and because of the size of their congressional delegations, they will get a federal bailout.
If Michigan gets to that brink, can it expect a federal bailout? Would it want one?
Then what happens next for Michigan? Bankruptcy?