Jim Cramer says: No states have ever gone bankrupt? Nope. But I need historical source.

Turtleread

"Jim Cramer says: No states have ever gone bankrupt? Nope. But I need historical source."

The history of a state declairing bankrupsy is not valid . . . your question refers to a time in history that was considered as a victory for the United States. After the Confederate States of America  lost our Civil War, the federal government became responsible for all debts incurred. The currency used by the Confederacy was NOT the same and had no value.

You might consider using this site

http://www.researchonline.net/mscw/index.htm 

Your question is specific to one state, Mississippi and does not consider the ramifications involved at the end of our Civil War -- bankruptcy was NOT a term that was used. Simple answer? ALL CONFEDERATE STATES were occupied and the FEDERAL GOVERNMENT became responsible for all confederate monies. There are numerous valid sites that consider our Civil War as a whole. Any gold or silver monies that were minted by the Confederacy was confiscated (unless buried by the owner).

Slavery is another misunderstood factor -- with the advent of the industrial era, the need for slaves became invalid and the result was the advent of 'share cropper' replacing slavery. The Union was primarily Industrial and the Confederacy was primarily Agricultural. Slaves were freed by the EMANCIPATION PROCLAMITION and the historical significance was a strong FEDERAL government vs  STATE RIGHTS.

hs

Heck  the  entire federal Government went  broke during Grover Cleveland's second administration. That's 40 plus states during 1894.

How can a state enter bankrupcty if they always have the option to increase taxes or reduce spending?  If everyone vacated Ohio, maybe Ohio's politicians would then be able to declare bankruptcy, liquidate its assets to pay debts, then disband and join the exodus.  Otherwise...

I've read a comment that California "went bankrupt", but I think many people confuse a protracted political deadlock over how to balance a budget - how to govern - with the legal process of getting a judge to approve a declaration of bankruptcy.

Jim Cramer's statement is confirmed at the beginning of the 2nd sentence in the following LA Times article.  (from http://articles.latimes.com/2009/may/23/local/me-rohatyn23), Geraldine Baum, May 23, 2009:  "Reporting from New York — In 1975, New York City was teetering on the edge of bankruptcy and threatening to bring down the entire state. No state had gone bankrupt, but President Ford wanted to make New York an example to the rest of the country. His spokesman compared the city to "a wayward daughter hooked on heroin. You don't give her $100 a day to support her habit."  (Note that NYC is a city, not a state.)

Hasn't Jim Cramer been discredited by recent events, exposed as just another screamer on just another 24-hour "news" network (in actuality, just another 24-hour broadcaster of commercials interrupted by unsubstantiated factoids)? 

Are you asking for proof that something hasn't happened?  If you cannot find evidence of a State declaring bankruptcy, you may have to accept that it probably hasn't occurred.