Gov. Dannel Malloy made it clear Monday that there is no way the state would seek bankruptcy protection because of its more than $4 billion dollar budget deficit and said such talk by Republicans is dangerous because it could adversely affect the bond market. Malloy’s comments were similar to those reported by The Hanging Shad earlier this month.
“If you start allowing any of the 50 states to declare bankruptcy, the [bond] marketplace will disappear. That’s why this discussion is really quite insane,’” Malloy told reporters. “It is a classic example of a divisive issue that someone wants to capitalize on. To be able to say that people could avoid their obligations with the stroke of a pen is very attractive.”
In other news regarding the new governor, Malloy will be at the state of the union address tonight in Washington, DC. He’ll be the guest of US Rep. John Larson. Malloy has spent quite a bit of time in the nation’s capitol since being elected in November, seeking maximum influence and federal funding for the state. It’s quite a break from the approach of his predecessor. Visiting Washington to promote the state seemed anathema to Jodi Rell.