California is a textbook case of bad governance. It is a harbinger of the fiscal mismanagement that is our federal government. Polticians can't say no to spending...and they can't say yes to taxation. It is useful to remember that California is one of the richest states, and has a history of being a leader in the economic development of the country. All of the economic/political policy elements that the Hedge Tax is designed to correct are on full display.
The end game for California is fairly easy to guess. A quick sale to the Federal government followed by a restructuring with controlling ownership held by the public employee unions. Of course, taxpayers in the hinterlands will stand ready will loans and bailouts to keep the whole enterprise afloat. It worked for GM and Chrysler didn't it?
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