Chris Whalen: California Will Default

Chris Whalen, a financial industry analyst and Managing Director of Institutional Risk Analytics, tells Henry Blodget in Yahoo Tech Ticker that California, and other heavily indebted states like Illinois and New York, will default on their debt, rather than accepting the federal bailout and losing their sovereignty.

And he thinks it will be a good thing. So do I.

But I don't think that will happen. These states happen to be the "Blue states" - will they care more about maintaining sovereignty? I think they would rather receive the federal bailout so that they can continue to pay to their public union workers and retirees.

Tweet