Illinois

Under current law states are not allowed to file bankruptcy but the congress is working behind the scenes to change that. Just as banks became too big too fail and were thus bailed out by the feds some states feel that if they go far enough in debt the feds will allow them to file bankruptcy and then step in as they did with General Motors and restructure the state debt. Illinois is the prime example. They have done over the years what countries like Greece and Spain have done. The elected officials maintained their jobs by catering to the people who elected them and in both cases it was public employees. Public unions were able to put people into office who were owing to them and then they negotiated contracts which were too costly. The day of reckoning was pushed down the road for many years but now it is time to pay the piper. These unions followed the law and were so successful they have killed the golden goose just as unions at GM did. Union membership in Illinois represents only 15% of workers but they vote as a block and are thus able to elect representatives who are favorable to their demands. Each member gets his/her spouse and their parents and grandparents to vote. They hold coffee parties and go door to door and make campaign donations to their candidates and thus have the power to elect the people they want. It is particularly well organized in places like Chicago.