One of the criticisms of the Wall Street bailouts was that knowing they would be bailed out firms had less of an incentive to be prudent in their risk taking and operations. That sounds reasonable.
Why is that a less reasonable conclusion for the various states? If they know they will be bailed out by federal deficit dollars despite their imprudent spending and irresponsible long term obligations, why should they make the hard (unpopular) choices to change their ways?
Just asking.
QUINNSCOMMENTARY 