Detroit is famous for defaulting on its debt - or paying back less than face value of its bonds. Harrisburg, PA and Stockton, CA are two other recent examples of American cities defaulting. There is a worry that with baby boomers retiring, tax revenue will be lower while expenditures on health care and pensions will increase; which will lead to more defaults from both municipalities and states. The federal government has avoided paying bonds for defaulting municipalities, but with more defaults in the future there could be more pressure for the federal government to step in and guarantee to some degree local debts. Should the federal government get involved with non-national debt? If it does, what problems could arise