This is very interesting, leverage to the maximum …. and California is going bankrupt …. running out of cash to operate … even Arnold cannot save California … the USA has been living high on credit for too long …
See, e.g.:

• “The Reckoning: Agency’s ’04 Rule Let Banks Pile Up New Debt,” by Stephen Labaton, The New York Times, October 3, 2008
• “wild greed and market failure” AGINY, October 3, 2008
• “Wall Street crisis threatens California’s house-of-cards budget plans,” by Dan Walters, Sacramento Bee, October 1, 2008