When states fail to respond to the competitive advantages that fiscally responsible rivals such as Indiana have expanded, it can result ina downward spiral of state government revenues.
She said she believes the spiral of violence began in May when the Sao Paulo state government took a more aggressive stance against the PCC and drug gangs.
So we may witness a self-fulfilling death spiral: current shareholders expect to be wiped out in any recapitalization forced by the state, which will in turn lead to a need for state intervention.