Allow States to Declare Bankruptcy, says Newt Gingrich

Legislation to be Introduced to Allow States to Declare Bankruptcy, says Newt Gingrich

by Mark on January 23, 2011
economiccollapse.net: Gingrich, Allow States To File Bankruptcy

State bankruptcy bill imminent, Gingrich says
By Lisa Lambert

WASHINGTON | Fri Jan 21, 2011 5:57pm EST

Reuters

...Although Gingrich, considered responsible for the "Republican Revolution" of the 1990's, is no longer in office, he has deep ties to Congress and is frequently named as a potential presidential contender in 2012.

For months he has championed letting states file for bankruptcy in order to handle their long-term budget problems despite resistance from states and investors in the $2.8 trillion municipal bond market.

"We're faced with the danger that the states are going to try to show up and say to Washington: You have to give us money," Gingrich said. "And I think we have to have an alternative that allows us to say no."

While he declined to comment on who might introduce legislation, Gingrich said there was support in both the House and the Senate. He said lawmakers have been looking into the idea for three or four months.

Gingrich first publicly broached the idea in November, the same month the Republican party won control of the House in mid-term elections, largely on promises of reducing spending.

But the legislation will likely face an uphill battle with Democrats still in control of the Senate and the White House. ........

The World Needs More SEDER!!!