The World's 8th Biggest Economy is in Trouble

George Washington's Blog
Friday, Dec 12, 2008

The world's 8th biggest economy is in trouble:

• Governor Schwarzenegger declared an emergency and says that California is near "fiscal Armageddon"

• The state budget gap could reach $41.8 billion by 2010

• Standard & Poors has downgraded California's bonds again

• Wall Street giants are urging investors to bet that California will go bankrupt

What would it mean if the world's 8th largest economy failed? It wouldn't be pretty.

Forget the automakers. Help California. Aid to states is the fourth best bang for the buck in terms of stimulus. And it could help prevent the 50 pieces of America from failing one at a time.