You gotta love the golden state.  The land of opportunity, technology, and face lifts.  It is a state that boasts all the natural resources one could need.  It's got agriculture, energy, water, and beautiful women.  It has a diverse population, an amazing coastline, beaches, ski resorts, and a governor that could beat up your entire family.  But, they don't have money. 

Why?  Well the talking heads will tell you that California is a super liberal spendthrift group of government lovers.  This may or may not be true.  What is more factual is that California, hit by economic downturn can't afford to fund the rest of the country (being the largest "donor state" in the nation).  It cannot live up to its promises fund every great idea that gets enough signatures to make the ballot, and it just cannot afford foot the bills any longer.

As FT.com reports,

"California is preparing to issue IOUs to its creditors this week as it grapples with an unprecedented cash crunch and prepares to begin its new fiscal year deep in the red.

Once the US’s richest state, California now has the dubious distinction of having the worst credit rating in the country."