"California in not such a golden state," By Robert Shrimsley, Financial Times (London), July 9, 2009

"The scale of California's debt crisis - the state is having to issue IOUs as it grapples with a $26bn deficit - has raised some uncomfortable questions for the US.

Is California too big to fail? If so, might the federal government be forced to nationalise it? There are those who believe California should be allowed to fail as a warning to the others. Many ordinary voters are unhappy at bailing out wealthy Californians who enjoyed a luxury lifestyle of sun and sand while their state was sinking."

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BLOG COMMENT: For someone who has taught state politics for 30 years, this article is surealistic. Can I really be reading this in a mainstream publication? Am I dreaming? No, tis not a dream, rather it is Peak Oil reality. We are beginning to wake up from a dream, the Age of Oil.

"California nears financial 'meltdown' as revenues tumble," By Jim Christie, Reuters, June 11, 2009

"California's government risks a financial 'meltdown' within 50 days in light of its weakening May revenues unless Governor Arnold Schwarzenegger and lawmakers quickly plug a $24.3 billion budget gap, the state's controller said on Wednesday.

California's revenues have been on a dramatic slide as a result of recession, rising unemployment and its lengthy housing downturn.

The state's revenues from personal income taxes tumbled by 39.3 percent in May from a year earlier while revenues from corporate taxes fell by 52.1 percent and revenues from sales taxes sagged by 7.6 percent, according to a report released by Chiang's office." (CONTINUED HERE).