California

Recently a good friend was telling me, emphatically, that California could not and would not be permitted to crash and burn. I responded here, making a few comments.

Now...I'll note a couple of things. The feds are about to run head first into a credit limit that Congress doesn't look to be raising...or if they do, there will be heavy conditions attached that effectively prohibit much of anything in the way of federal rescues of states.

Then, I'll quitely point out that the melt-down is accelerating....

I suspect the best we can hope for is that California hit bottom soon and hard, so they can then get about the business of recovering. Not holding out a bunch of hope, though. Get out while you can, is my advice.