A California Bankruptcy, Dictatorship, and the Guarantee Clause

http://www.professorbainbridge.com/professorbainbridgecom/2010/12/a-california-bankruptcy-dictatorship-and-the-guarantee-clause.html

It got me thinking about what would happen if California went bankrupt.

In the absence of a statute, presumably the federal government would conduct some sort of bailout combined with a restructuring. If so, however, who would run the state during the proceeding?

Interesting discussion at ProfessorBainbridge.com, especially in the comments.  Personally, I don't think a state can go bankrupt.  As a sovereign entity, it can simply default on its debts and claim sovereign immunity to deflect any law suits.

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