california: California is the 8th largest economy in the world. The state is running out of money and its reserves will be completely dried out by midsummer. How would this affect the other states and what steps should the California government undertake to take care of its debt and keep money flowing?|||Depends! If the feds bail out CA, everyone pays. If CA is properly left to fail, everyone but the unions wins. These contracts should be changed. We can't afford them.|||barney frank wants to bail california out, I can't imagine why|||They'll all scream for us to SEAL OFF THE BORDER!|||Obama loves those deficit spending Socialists. The rest of the states will have to pay their debts. Soon all the illegals will be instant citizens. That's Obama's way.|||The most negative impact on others will be if the federal government decides, as I think they will, to bail out California. They need to simply stop spending money in areas that aren't absolutely critical to Californians.|||If the state gets bailed out then it is the official end of our country and individual freedoms|||It will be a compass-point for Democrats to steer the rest of the country to the same fate.|||So goes Califorinia. So goes the rest of the Nation. .|||This is a great question. There should be more like this in here. I wish I could answer it but I do not have a clue.|||It's in REALLY bad shape, schools will shut down, building and maintenance is in disrepair, people are losing their jobs at alarming rates and their houses are all worth half of what they paid, If they don't be careful our Government might auction it off back to Mexico. Don't kid yourself it will affect the rest of the country especially out west.|||I say that they don't do such a thing and kick us out of the union. We will flop hard but we will be okay in the long run. Sure, it's full of the biggest fools who are uninformed on how they are voting and pass everything, but once the people here hear enough propaganda about how big of a problem a large governemnt is, they will repeat the "facts" like pull-string dolls and things will go back to normal.|||The illegals will move out of California and move to the other states.|||We will bail them out. People are applying for the gov. jobs their are many of them. So dems who are out of work will accept gov. jobs. Reps. need to work for private companies. So there are an enormous amount of job opens. Some people don't know hot to get to them yet. Some are going to find out from things they are doing at local employment offices. It takes time. We are going to learn how to go from rags to riches but only according to our level of our consciousness/opening our mind. People who are conservative (tight) will not trust & will not recieve. So instead of the poor people people who were just born into horrible circumstances it is going to be this 12% who hate Obama. If they can't open their heart nothing good can come in but they have no clue. We are going to do better than you can imagine.|||It's only the 8th largest because of Hollywood. There'll still be movies because they're privately funded|||It won't unless we bail them out. California is in such a mess as compared to Texas which is prospering. Hmmm, extreme right defeating extreme left? It won't effect other states to a heavy level though stocks in technology (computers and cellphones) may go down by a slight bit because the state has Silicon Valley. I do not believe that it will effect the Midwest, Southeast or Northeast. The West might have more immigrants moving to their states, it looks like a nasty scenario. I certainly do not want Californians where I live.|||It may give bondholders a pause...with the ratings of every state thrown into question. The question is a matter of when: I don't see how one can cut $26B from the budget (when New York City was bailed out in the 1970s, the amount was $22B when corrected to 2008 dollars). The most I can see being cut without impacting vital services is maybe $10B...and that still leaves $16B to go (assuming tax receipts aren't down even further). The problem is that when the subprime crisis hit---CA got hit the worst.