The State of California is bankrupt (and muddy) as is the State of Illinois.
Why do I get the sneaking suspicion that the solution to this problem will be to extract the money to pay for fiscal recklessness from the citizens of the more responsible States? (Granted, there are very few States that are truly fiscally sound). Sort of like taking money from responsible citizens to cover the downside risk of "too big to fail" financial firms.
I have been warning you for some time that we should expect my son's generation to proclaim a hearty "Fuck you" when asked to pay for the money we've borrowed. I'm considering delivering the same message myself. Is California too big to fail? How about this time we find out.