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Another State Goes Belly Up

This time it's Rhode Island, whose Treasurer has warned that the state will have to "shut down" on selected days in order to conserve funds. This follows the de facto default of California, who's paying its bills with IOUs, until it can pass a new budget. New York state is headed for a budge crisis, although not so dramatically. Illinois pays its bills months late. If they were private individuals, they would all be in default.

To paraphrase the late Senator Everett Dirksen, "A state here, and another state there, and pretty soon we're talking about the United States."