01/21/2011 05:17 pm ET Updated May 25, 2011

The State Bankruptcy Meme: How It's Metastasizing In The Media

Talk of introducing legislation allowing states to declare bankruptcy began in earnest in November. A speech by Newt Gingrich was followed up by a big Weekly Standard piece on the subject by David Skeel, and soon the meme filtered into the blogosphere. Unlike most political chatter, this kind of talk isn't cheap at all: it's very expensive. As the subject has refused to go away--which means, as House Republicans have continued to work on drafting some kind of bill--the municipal debt market has plunged.

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