As we noted earlier, a big problem with “state bankruptcies” is that state debt isn’t often state debt. So, for example, what’s counted as “New York” debt includes stuff like MTA bonds, and other corporations that have their own debt and revenue.
This was a point brought up by Nicole Gelinas of the Manhattan Institute in a New York Post column.
Photo: Manhattan Institute
So along these lines, Gelinas emailed us to suggest something.Eveytime you hear someone advocate a state bailout for, say, New York, just ask…
“Should New York State’s Tobacco Settlement Financing Corporation go bankrupt?”
See what they say.