Speaking of Michigan

Unemployment, California and Michigan

Let's just say that Michigan dodged a real bullet during the crash, at 14% unemployment they barely survived a series of municipal bankruptcies.  This is the state with Detroit and the Rust Belt. From a Huffington Post report:

Michigan currently has 68 cities on its "fiscal watch" or "fiscal stress" lists, meaning these communities are at risk of running through their money. Many communities, Hamtramck included, have seen sharp drops in their populations as laid-off manufacturing workers have moved elsewhere in search of new jobs. Cities now struggle to provide the same services with depleted tax revenues. William Alden

I don't see how a Republican threat of dictatorship helps here. The voters in these cities either get it or they, the unions and bondholders can meet in court.