[Lael]

Well there you go, I'm from NY and couldn't remember if it was the federal or state government

Actually, it was Municipal Union pension funds and the sale of "Big MACs" [Municipal Assistance Corporation bonds].

California's problem is that it doesn't have New York State to 'morally guarantee' the bonds...Cali's bonding capacity is just about shot.

And remember, in 1975, the Stock Market had recovered, and union pension funds were 'FLUSH!'

Can CALPERS do the same for the state after the Greatest Bear Market in the History of Civilization???

Look, I don't have a crystal ball, but you are talking about a whole different ball game.

Perhaps the Professor isn't off his rocker after all.

[Reaganwuzthebest]

Even if the feds bail out California today, in a few years they'll be back right where they started. And Texas and Arizona aren't far behind. I'm not even sure the enormity of the situation has been fully realized yet by the powers that be in Washington, but the problems are long-term and won't be going away.

[tubebender]

Can CALPERS do the same for the state after the Greatest Bear Market in the History of Civilization???

Now that would be a hoot...looting Calpers to bail out the "Rats. Where are the first street battles, ala Watts, going to be fought and by whom ?