[[wysiwyg_imageupload:235:]]The WSJ is reporting that it is not so easy for municipalities to file bankruptcy, due to their need to have continued access to raise capital. We ask what other alternative to state and municpal governments have? When analyzing the ballance sheets of states and municipalities, a novice can see that current liabiblies drastically out number tax receipts. Not only has current revenue collapsed, but when one considers future promises to government pensions, it resembles a house of cards. The only other alternative that we see is a federal bailout of epic proportions - and this very well could happen. In fact, we fully expect it to happen.
From the article: