financial crises forces california to face ..., page-4

Greg, from what I understand there are limits to the extent to which states can go into debt in the USA. They might not be allowed any debt in fact. But it poses a real problem if they cut back spending, unless they can take advantage of the Obama stimulus and create jobs that way. Especially with so many homes there in foreclosure. Things there could get a lot worse before they get better. And it's working against the economic stimulus so risks undermining it.

BTW - I really loved California despite its weirdness or maybe because of it. Wonderful countryside, fabulously diverse population, generous people like all Americans. I spent some time there many years ago :)