It isn’t even Michigan. At least with the car companies about to go under there would be some excuse.
California says it will run out of money on Monday.
According to The Christian Science Monitor, Standard & Poor’s now ranks California lower than any other state except Louisiana, which shares the same rating. California tried to sell bonds three weeks ago, but there were not buyers for all of the paper.
With the recession cutting into tax revenues, things are not likely to get better.
Where can the largest state in America based on population turn? The US government, the lender of last resort. At this point, California’s budget shortfall for the next two years is estimated to hit $28 billion.
That is modest compared to the $34 billion the car companies sat they need.
Douglas A. McIntyre
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