From Forbes: A convincing argument for Illinois bankruptcy

Illinois soon may become the only state in history to see its bonds rated as junk. It has $7 billion in unpaid bills and $138 billion in unfunded public worker pension obligations.

States cannot declare bankruptcy. That needs to change. Below, courtesy of Forbes, is a convincing why.

Our analysis at OpenTheBooks.com shows that an Illinois family of four now owes more in unfunded pension liabilities ($76,000) than they earn in household income ($63,585). In a state of 13 million residents, every man, woman, and child owes $19,000 — on an estimated $251 billion pension liability.

Our auditors discovered 110,000 public employees and retirees who earned more than $100,000 last year.

We found tree trimmers in Chicago making $106,663; nurses at state corrections earning up to $277,100; junior college presidents making $491,095; university doctors earning up to $2 million; and 111 small town managers who out-earned every governor of the 50 states ($202,000).