California's Economic Forecast is Up in Smoke



The Governator is living up to his terminator label, especially when it comes to the California economy.

California's scary sneak preview -Washington Post
David Paterson, the governor of New York, casually mentioned that he thinks California might default on its debt. That's bad enough, as it could drag down the national recovery. But what's worse is that this picture is probably coming to a theater near, well, all of us.

The lesson of California is that a political system too dysfunctional to avert crisis is also too dysfunctional to respond to it.

California Watch: Will California Default on Bond Debt in 2010? -Market News International