Nathan B. Oman: Hiding state's debt doesn't make it any less real

If the state is a sovereign entity, how can it declare bankruptcy? Who is the sovereign that can order that creditors forgive the state's debt? If the federal govt, then does this not further weaken state independence from the federal center More..

I'm not sure where state governments get their money but city/local governments borrow money from big banks and other creditors much like individuals and corporations. Then they can't make their payments. These entities refuse to loan More..