California Creditors Dread IOUs With Aid Plea Failing (Update3) - Bloomberg.com: "California’s hopes are fading for federal help in closing a projected $19.9 billion deficit that has caused the lowest-rated state’s borrowing costs to rise 24 percent since September.
“We recognize they have enormous problems,” David Axelrod, senior adviser to President Barack Obama, said in an interview. “But we can’t solve all of those problems from Washington.”"
Yes. And there isn't any cavalry riding to the rescue of California, Illinois, New York, New Jersey, Michigan, or any other insolvent state. Thanks to Fred Pilot for the update.