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California "Dreaming"

Forget about "nationalizing" the car companies. Nationalize the states. Starting with California.

Between a "rock and a hard place" (a stubborn governor and an intransigent legislature), the state appears to be at an impasse at raisinig sufficient funds to pay its bills. That could easily call for an "intervention" from "Big Brother," i.e. Uncle Sam within days.

That, in its turn, would cause something of an unprecedented crisis. Of course the state took the country into uncharted waters about 15 years ago when Orange Country defaulted, after losing its shirt on bad derivative bets.

No one seriously believes that California will ultimately be unable to pay its bills. There is a real danger, however, that the state will become a "slow" payer, missing deadlines for days, or even weeks at a time. If the Federal government is going to bridge the gap, it will likely acquire some de facto control over the state. Would the President try for the "firing" of the governor or legislators, especially given that the state was a key part of his electoral college majority last fall?

California used to be the leader in (1960s) culture. Now, almost 50 years later, the state may become a cultural leader, in another way.