The 8th largest economy in the world could mirror or even be a larger mess than the effect of the Mediteranean Club Busters. To make things worse there is not IMF to force a correction or add liquidity given it is not a separate country. The Feds might be forced into effect? Just really hard to say..... If California goes bust as evidenced by their credit rating, the austerity measures will reinforce the BEARS again. Fear of the unknown would mirror what is already happening in Portugal, Italy, Ireland, Greece, and Spain (PIIGS). If this issue comes up soon than fear will really start to rule the market and we could expect some real drastic drops in the market.
Let me know your thoughts on the subject?
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http://news.yahoo.com/s/ap/20100514/ap_on_bi_ge/us_california_budget
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