Interesting article touching on state and local government default potential. I forwarded it to Kirk Nace to get his take and here's his response...
"Hmmm...
What happens when individual and families can't or don't pay their bills?
What happens when companies don't or can't pay their bills?
What happens when small local governments can't pay their bills?
What happens when state governments can't pay their bills?
What happens when the federal government can't pay it's bills?
Think in terms of who suffers, future borrowing costs and availability of money/credit, precedents set and the like."
Click on the title above or the link below to review the entire Yahoo News article.
http://news.yahoo.com/s/ap/us_states_federal_help
