So now California is "too big to fail" according to the government. What a terrible precedent they set when they allowed any institution to classified as such.
There's a reason that one of the definitions of failure is "a condition of being bankrupt by reason of insolvency." Hmm, what's that sound like? Oh, how about a dozen financial companies and a half dozen states.
Make them feel the pain of recovery. They are the ones that screwed themselves up. Let them fix it. When you continue to bail out people who make the same mistakes over and over and over again, they simply don't learn. Why is that? It's because there is no penalty for them.
If I said, "Hey, I want a new car. Let's charge it. Oh sorry, I can't afford that Rolls Royce anymore. I'll tell you what. I'll keep the car, and you can bail me out. How do you like that plan?"
How do you think that would go over. I think the answer couldn't be more obvious.
For the last time: NOTHING IS TOO BIG TO FAIL!