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So far, investors have bought states' bonds eagerly, on the widespread understanding that states and cities almost never default.
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Although this move bought state lawmakers some time, a $600 million deficit is still projected for the 2016 fiscal year.
So also has their money bought state houses which have, in turn, gerrymandered political districts to ensure the perpetual election of House candidates of their political stripe.
They also allowed foreign conglomerates to buy state-owned companies for small amounts.
The money was used over four years to buy state-owned companies, they said.
Which jurisdiction applies, especially when buying state to state in the United States or purchasing worldwide?
Assembly Speaker Sheldon Silver said the idea was "the equivalent of requiring students to buy state bonds".
Ms. Merkel left an opening Wednesday, saying that Europe's bailout funds could buy state debt on the secondary market.
MANY investors buy state-specific funds because they offer exemption from state taxes, as well as from federal taxes.
Harold Levinson Associates, of Farmingdale, buys state tax stamps and applies them to cigarette packs before distributing cigarettes to dealers.
In her paper, Ms. Reinhart points to numerous steps that European governments have taken to induce their banks and other domestic investors to buy state bonds.
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