David Skeel suggests that a new chapter should be created in U.S. bankruptcy law to cover state governments. This is not without problems, however. Skeel states that the "main objection to bankruptcy for states is that it would interfere with state sovereignty—the Constitution’s protections against federal meddling in state affairs.” He does not see this as a major hurdle, whereas I do. Whereas he, as a lawyer, is looking narrowly at bankruptcy and constitutional law, I am looking more long term at the trajectory of federalism succumbing to consolidation.
The full essay is at Essays on Two Federal Empires."
