Is California too big to fail? It’s now bankrupt if it needs money from the U.S. government to stay afloat. It’s a bargain. For only $7 billion, the rest of us can get a piece of California. Its real estate values must be very low, if the government there cannot raise a lousy $7 billion. What will be our collateral? San Francisco? What good is collateral that sinks in value daily? When companies borrow, they agree to innumerable bond covenants that restrict their actions. Will the same thing happen to California? Do the constitutions allow this sort of thing? We … Continue reading California bankruptcy