American masters of the universe and their toadies give self serving lip service to covering some events in Europe. They are forced to really. But when it comes to the last Ponzi standing, the US, we see little of the kind. For example recent estimates of California’s budget deficit soared to $16 billion, compared to $9.2 billion estimated in January. Tax revenues are falling far short. Now the state proposes more tax increases and spending cuts. Even though California is a non-recourse state, bankruptcies are running hot. The other state to pay close attention to is Illinois, a political quagmire of the highest order. My prediction: both California and Illinois are political hot potatoes and Democratic states. Therefore any attempts at Federal bailouts of states will be gamed unmercifully. Look for this to develop pre-election.