Big finance and State bankruptcy

JAMES PETHOKOUKIS runs down the issue. The bottom line here is that Big Finance, makes big money managing public pension portfolios.  They are putting millions into the pockets of Republicans, like Eric Cantor, whose district has a 30% dependency on federal employment.  Big Finance would support bankruptcy if Obama can guarantee to squeeze the  middle class, keeping the banks whole on any losses.  The problem is the three big, underrepresented states are bankrupt because they subsidize federal bailouts. So we have this huge circle jerk that point straight back to Congressional bankruptcy.

There isn't enough Keynesian fakery left to weasel out of the problem. We eventually have to cut Eric Cantor's welfare system.