stu varney is the host of varney & company on fox business network, and he s my guest now. stu, you re not allowed to, it s unconstitutional right now for a state to declare bankruptcy because they want creditors and citizens and everyone else to have full faith and credit in a state and its ability to live up to its contracts. it s a measure of how desperate the situation is that we should even be using the word bankruptcy in the same sentence as state. but nonetheless, that is what s happening. there is a push to change the rules, bring in some kind of legislation which would allow states to declare bankruptcy. megyn: or something that looks like bankruptcy but might not officially be? essentially, what they want, what everybody wants, actually, is some kind of third party that would come into a state situation and say, you get this, you get that, this is all the money we ve got, and here s how megyn: and that is how it works in bankruptcy. precisely. megyn: so what are the
tremendous hurt and rage, and in my book i tell people the origin of the evil behavior. it s real important, when something pwadz happens to you you tend to think you re the only person on the earth and a huge rock has fallen on you. megyn: you have a huge concept of fairness and unfairness. this is about evil exists. adam threw eve under the bus, talk about a shark attack. i wouldn t have eat even it. she made me do it. it started at ground zero. she had to pay a terrible rao price for that biblically speaking. people feel helpless and like the world is unfair and they can t trust anybody, they start to generalize. and their lives just constrict. and my job, which i ve done in the book, through my own stories, other people stories, to help them march through that to see sometimes was it a betrayal or consequence of something you did that came back and splashed at you or is if
problem. megyn: wow. it s really serious. megyn: and then there s going to have to be some sort of massive reform. it s like the overspend beer who goes into bankruptcy, and your situation is resolved through bankruptcy. you have to address the overspending. you have to change the person s habits in order for there to be real reform going forward. these states have to figure out how to live within their means. it s not an exaggeration to say this is the next great financial crisis, and this is a step towards heading it off, towards creating some kind of solution. megyn: yeah. and they say it s no accident that the states that are in the biggest troubles are so dependent on taxes and such big spenders at the same time. correct. megyn: recession taxes go down, and the spending doesn t. stu varney, thank you. megyn? megyn: it was interesting. well, feds swooping in on a college. what is wrong with this picture? some say it shows the first lady
expenses on a daily basis. they ve got to borrow now. would you lend money to a state which might go bankrupt? if it went bankrupt megyn: no, because you get pennies on the dollar. look at vallejo, california, they declared bankruptcy two years ago, they ve just come up with a plan. the bondholders, the people who lent v.a. a lay hoe money might get 20 cents on the dollar. megyn: this is not what you re looking for when you make an investment. that s right. if this word is used megyn: why are we going right to bankruptcy or some form of bankruptcy? why aren t we looking at things like pension reform? the i mean, was it california that just announced all these amazing cuts, all these spending cuts and tax penalties and yet didn t touch the pensions? all the spending cuts and the tax increases combined will not be enough. the money is not there. illinois, totally run out of money. $8 billion in debt to its vendor doors. vendors. so you need something now. the crisis is upon u
street journal saying i m going to examine the rules and make certain we get rid of rules and regulations that are costly. well, guess what? in 1980, jimmy carter signed the regulatory flexibility ability of 1981, became effective january 1, 1981, it requires every federal agency to do exactly what president obama said wee do in his editorial every ten years. the president is already obligated to do this. every ten years to review every single rule on the book for ten years and find out if it makes any continuing sense. so it s this great iron yes, i m doing something new and different that he s required by law to do for 30 years. megyn: it s perception. he puts in daily as the chief of staff, he it s a smart move. bigg megyn: the question is, the business community which in large part according to the polls is having second questions about barack obama, people behind him, you look at wall street who is very liberal, people think it s not but it s liberal, a lot of questions raise