State Governments Begin to Fail

http://endthefed.blogspot.com/2008/10/reuterscom-california-may-need.html

California may need emergency $7 billion loan: report
"Absent a clear resolution to this financial crisis, California and other states may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the federal treasury for short-term financing," Schwarzenegger wrote in the letter, according to the paper.  Reuters.com - California may need emergency $7 billion loan: report