LET THE BANKRUPTCIES BEGIN: Thomas Sowell on basic economics.

Q: We're getting very close to the point where we could have states default on their debts for the first time. What should happen then?

A: They should go bankrupt. I'm looking forward to it.... There are three possibilities -- bankruptcy or bailouts or ruinous taxations. Of the three, bankruptcy is the one that makes the most sense because it's the one that conveys the most accurate knowledge -- which is that they've run out of money and couldn't cover all the promises they made.

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