Interestingly, bankruptcy of the individual states of the U.S.A. does not threaten the federal union and the U.S. dollar. Wouldn't it be wise for Europe to borrow this model of consolidating debt under the title "Eurobond" whereby bankruptcy of, say, Greece will not send the entire monetary union and Euro into a death spiral?
"SAN BERNARDINO, Calif. (AP) — As recently as last month, no city in California had opted for bankruptcy since 2008, and no U.S. city of more than 200,000 people had ever chosen bankruptcy.
The past two weeks have changed all that, in a big way, as the fiscal struggles faced by so many American cities became too much for some to bear.
San Bernardino became the third California city in that small span to choose Chapter 9 bankruptcy protection with a City Council vote on Tuesday night...."
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