Comment by throwaway1979

According to the book (the author did do some financial analysis but I forget the details), if these states sell a small fraction of their assets, they will be able to pay off all their debt. I'm definitely not agreeing with the author's point of view, but that is something I had not thought about before. i.e. while your debt may be a lot higher than your income, if you have sizable assets, you an get away with it for a while.