The tank is full of gas but the engine is seized

Well the old 1942 Packard Woody Wagon came to a stop a while ago, the tank was full of gas but the engine had seized. It looks like they have no spare parts left these days so the car is doomed to the scrap yard. That's the the same story for the US today the country of course was a shining light in it's prime and the engine was California . You can't go far without the engine and when you look at the state today you can only scratch your head and wish you had the parts to fix the problem.
In the last month California lost about 70,000 jobs and the total for the year to date is around 750,000. The Big O has said that the US needs to be creating 150,000 a month just to keep even. The banks were stress tested to a 10% unemployment rate nationally. The Big O has told us that unemployment will hit 10% this year. He is right if it even hits 12% as the 10% will have been achieved . Looking at the country as a whole this is how it stands with the Bureau of Labor Statistics it looks bad with some way worse than Cali
Alabama9.8%(p) in May 2009 Historical Data
Alaska8.4%(p) in May 2009 Historical Data
Arizona8.2%(p) in May 2009 Historical Data
Arkansas7.0%(p) in May 2009 Historical Data
California11.5%(p) in May 2009 Historical Data
Colorado7.6%(p) in May 2009 Historical Data
Connecticut8.0%(p) in May 2009 Historical Data
Delaware8.1%(p) in May 2009 Historical Data
D.C.10.7%(p) in May 2009 Historical Data
Florida10.2%(p) in May 2009 Historical Data
Georgia9.7%(p) in May 2009 Historical Data
Hawaii7.4%(p) in May 2009 Historical Data
Idaho7.8%(p) in May 2009 Historical Data
Illinois10.1%(p) in May 2009 Historical Data
Indiana10.6%(p) in May 2009 Historical Data
Iowa5.8%(p) in May 2009 Historical Data
Kansas7.0%(p) in May 2009 Historical Data
Kentucky10.6%(p) in May 2009 Historical Data
Louisiana6.6%(p) in May 2009 Historical Data
Maine8.3%(p) in May 2009 Historical Data
Maryland7.2%(p) in May 2009 Historical Data
Massachusetts8.2%(p) in May 2009 Historical Data
Michigan14.1%(p) in May 2009 Historical Data
Minnesota8.2%(p) in May 2009 Historical Data
Mississippi9.6%(p) in May 2009 Historical Data
Missouri9.0%(p) in May 2009 Historical Data
Montana6.3%(p) in May 2009 Historical Data
Nebraska4.4%(p) in May 2009 Historical Data
Nevada11.3%(p) in May 2009 Historical Data
New Hampshire6.5%(p) in May 2009 Historical Data
New Jersey8.8%(p) in May 2009 Historical Data
New Mexico6.5%(p) in May 2009 Historical Data
New York8.2%(p) in May 2009 Historical Data
North Carolina11.1%(p) in May 2009 Historical Data
North Dakota4.4%(p) in May 2009 Historical Data
Ohio10.8%(p) in May 2009 Historical Data
Oklahoma6.3%(p) in May 2009 Historical Data
Oregon12.4%(p) in May 2009 Historical Data
Pennsylvania8.2%(p) in May 2009 Historical Data
Puerto Rico14.4%(p) in May 2009 Historical Data
Rhode Island12.1%(p) in May 2009 Historical Data
South Carolina12.1%(p) in May 2009 Historical Data
South Dakota5.0%(p) in May 2009 Historical Data
Tennessee10.7%(p) in May 2009 Historical Data
Texas7.1%(p) in May 2009 Historical Data
Utah5.4%(p) in May 2009 Historical Data
Vermont7.3%(p) in May 2009 Historical Data
Virginia7.1%(p) in May 2009 Historical Data
Washington9.4%(p) in May 2009 Historical Data
West Virginia8.6%(p) in May 2009 Historical Data
Wisconsin8.9%(p) in May 2009 Historical Data
Wyoming5.0%(p) in May 2009 Historical Data
I wonder will we get the next stress test like we got the second Govt. handout after they found out that the first was way to low.

Then we have the debt of California coming up in the news. Will they default and what will the knock on effect be there. Moody's and Standard & Poor's rating merchants must be working overtime on this. California is responsible for around 14% of the total GDP for the US which was about $1.7 trillion ( in 2006). This shows how important the state is to the country as a whole. The Cali bond holders must be thinking cars too or should I say car companies GM comes to mind. The Municipal bond market could become the next tire to deflate.

Anyone interested in a car to restore . It has a tank of gas. Didn't think so


UPDATE

Deficit forces California to issue IOUs

http://www.ft.com/cms/s/0/1940d18e-64cf-11de-a13f-00144feabdc0.html?ftcamp=rss&nclick_check=1

From the Daily Bail

This is a high quality version of the Financial Services Subcommittee on Oversight and Investigations hearing of May 5, 2009.Rep. Alan Grayson asks the Federal Reserve Inspector General about the trillions of dollars lent or spent by the Federal Reserve and where it went, and the trillions of off balance sheet obligations. Inspector General Elizabeth Coleman responds that the IG does not know and is not tracking where this money is.

Amazing really .