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Saturday, February 20, 2010

Pennsylvania's state capital considers filing for bankruptcy / The Christian Science Monitor - CSMonitor.com

Pennsylvania's state capital considers filing for bankruptcy / The Christian Science Monitor - CSMonitor.com
Will this effect the pension funds of Pennsylvania? Will it effect any municipal bonds that people have purchased? When a state goes bankrupt, how does that play out? For example, when an individual claims bankruptcy they can't be free of paying government debt. They are free from paying all personal debt to all individuals but the government which includes taxes, school loans or any other former tax judgments against will get paid.

Can the government step in like they did in the GM bankruptcy and stand our contract law on its head?

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