Michael Lewis has a great article in Vanity Fair about the slow-motion meltdown in the Golden State: "California and Bust" (h/t Ace):
The relationship between the people and their money in California is such that you can pluck almost any city at random and enter a crisis. San Jose has the highest per capita income of any city in the United States, after New York. It has the highest credit rating of any city in California with a population over 250,000. It is one of the few cities in America with a triple-A rating from Moody’s and Standard & Poor’s, but only because its bondholders have the power to compel the city to levy a tax on property owners to pay off the bonds. The city itself is not all that far from being bankrupt.Lewis bikes around town with ex-governor Arnold Schwarzenegger and gives a somewhat sympathetic account of his tenure. Californians supported Arnold when he said he was going to get the state's finances under control but then turned down every one of his initiatives.