It’s not surprising to me that McConnell would suggest an idea. It’s obvious that he would want to make a political statement in stopping “blue state bailouts” which is stupid. What’s more is that the Red states that he lovs so much require bailouts too.

At the same time, I understand that the Federal Government may want to reduce the deficit that it’s now incurring. Trouble is that forcing states to declare bankruptcy wouldn’t solve that problem at all. Rather, bankruptcy would shock financial markets and make the situation worse.

There will have to be significant budget cuts going forward and reform towards austerity. It’s simply untenable that the Federal Government would continue on this spending trajectory. I understand these cuts wouldn’t be favourable but it would be necessary. And, the other question is if tax reform will be revisited again in the future.