The collapse of the special interest state comes nearer. Coyote Blog points out that states are disabled from dealing with their budget problems by a combination of federal strings and judicial imperialism that prevent adjustments. He notes: "Just about everyone except for taxpayers have a set of lawyers in courts full time preventing budget changes that affect their special interests."
The end state is ineluctable: "The only way through this is going to be a massive string of state and local government bankruptcies."
A commenter finds a half-full glass in this:
At every level from state pensions to federal gov’t Treasury bonds, liabilities have been accumulated that cannot possibly be paid. It’s mathematically impossible.
The sooner they begin defaulting in earn[est], the sooner we can get through this Depression and the sooner we can begin rebuilding on a more stable basis.
Sure, the Depression will be painful. But the longer we postpone it, the more debt we rack up, the worse the pain will be when we are eventually forced to deal with it.