deals that will never work. >> cheryl: john, individuals can file for bankruptcy, individuals and local businesses so why not a state filing for bankruptcy and starting over? >> because it will drive the borrowing cost through the roof. if you take off the implicit guarantee of the united states government behind california, illinois, new jersey. the rates to borrow money would be self-fulfilling prophecy. $432 billion, the highest ever was done in state and municipal bonds. 27% of those were buy american bonds. that program ended december 31. that is funding that dried up. the stimulus in the first part of this year. medicaid, payment to the state. 33% of state's budget come from the federal budget, directly in transfer payment to the state. 42% goes to the state and municipalities. you have a strong head wind.