re: #645 acwgusa

Brokefornia has now been upgraded to Brokeassifornia.

Here’s what California (and New York) are looking at. Read the whole piece, including the new update.

What If New York Goes Bust?
by John Avlon

Forget the car companies and Lehman Brothers. Two of the biggest states in the country are teetering on the edge of bankruptcy, thanks to ridiculous union agreements that can’t be changed.

If California and New York State were businesses, they’d be going bankrupt. If you’re among the nearly 20 percent of Americans who live or work in these two states, the fiscal crisis is coming home for the holidays. And the worst is still on its way.

California, the world’s eighth largest economy, will run out of money in March if the deadlocked legislature and Gov. Arnold Schwarzenegger can’t come to an agreement on tax-hikes and spending cuts. Its bonds have been reduced to near-junk status after decades of borrowing and spending. State Treasurer Bill Lockyer summed up the situation in terms unhelpful to the tourist industry: “California’s fiscal house is burning down.”