I'm surprised given how many Californians are on this site that this hasn't been posted or being discussed.  The Governator has declared a state of emergency.  Every year California runs into to trouble passing the budget, but this year it's different, unemployment is at a 26 year high with those left employed seeing 10, 20, 25% salary reductions.

http://www.reuters.com/article/politicsNews/idUSTRE5601F220090701

To conserve cash, State Controller John Chiang plans to issue IOUs by Thursday to state vendors, some local agencies and various recipients of state aid, including the elderly, disabled and college students. 

Chiang plans to send $3.36 billion in IOUs this month to help make $10.9 billion in other payments, including money owed to investors holding California's debt. "The general obligation bonds will be paid," he told Reuters. "California has never defaulted on its debt obligation and we don't plan to do so."

 

California, which had the eighth largest economy in the world in 2006, according it its Legislative Analysts' Office, now needs to reassure Wall Street because state officials see the need to sell $7 billion to $9 billion of short-term debt once there is a budget agreement.

This is unbelievable.  The California economy is bigger than Russia, Brazil, Canada, India or Spain and is in imminent risk of defaulting on its debts.

How California goes, so too will the rest of the country.  Prepare for an even worse economy, save money and stockpile food.