“If you did not know it before, you do now. California is bankrupt.”

Mish – Sharing The Pain In California (quoting the San Jose Mercury News):

If Gov. Arnold Schwarzenegger were to fire every employee in state government tomorrow, it would easily patch California’s enormous deficit, right? Not even close.

But surely shutting down all state prisons would do the trick? That, too, would only get him about a quarter of the way there.

Now what if he were to close every prison and cut off funding for health care and other services for the poor? Now we’re in the ballpark.

I’d like to see how the state’s public pensions stack up to that $40 billion projected deficit. Mish has lots more.

If you did not know it before, you do now. California is bankrupt. So is Ohio. So are numerous cities like San Diego. All told, 44 States Face Huge Budget Shortfalls. My big fear in this mess is that Obama will attempt to bail out the states before much needed reforms are made. Such actions will only postpone the problems.

Previously

• CA pension loses 25% of assets since July 1 due to real estate investments
• California will lead states seeking bailout
• How did Vallejo, California go bankrupt?
• Goldman Sachs warns on NJ, CA, WI, FL, OH, MI bonds
• Britain’s public pension problems
• Vallejo, California declares bankruptcy
• How irrational are California public pensions?
• State pension funds heading for insolvency