Like Glenn Reynolds, I’m sure that there are all sorts of reasons that argue against this Volokh Conspiracy commenter’s position that if we do allow states to go bankrupt then we should also require them to lose their state status and be bounced back down to territorial status again. But the idea of taking say, California, yanking it out of statehood for ten years… then readmitting it as the three or so states that it should be appeals.
Hoo, boy, yes, it appeals.
Moe Lane
PS: Texas should also probably be about three states or so, but Texas is also not in imminent danger of default.
