Jun 24, 2010

http://www.moneynews.com/StreetTalk/California-verge-System-Failure/2010/06/21/id/362560

Budget analysts say Governor Arnold Schwarzenegger has no choice but to ask Washington for bailout funds, and that Washington has no choice but to agree because not bailing out the Golden State could put the entire U.S. economy at risk. 

It seems that California — which at one time had the third-largest economy in the world — is like the biggest U.S. banks: Too big to fail.

Neither Democrat Jerry Brown nor Republican Meg Whitman has offered details in their campaigns to become the state’s next governor about how to close this year’s $19 billion budget deficit or handle next year’s anticipated $37 billion deficit, the Mercury News reports.

Fortunately for all of us, the economy has turned around and recovery is just around the corner. Oh, wait, that was last year's news.