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California Learns The Government Won't Bail Out Everyone

Apparently there is a limit to the government's willingness to serve up bailouts. While GM and Chrysler were worthy of a helping hand, the state of California is being left to its own devices. As the California State Controller warned the state could be out of cash in a few weeks, White House spokesman Robert Gibbs took the opportunity to draw the administration's line in the sand.

"We'll continue to monitor the challenges that they have, but this budgetary problem unfortunately is one that they're going to have to solve," Gibbs said.

Evidently California does not qualify as a systemically critical/too-big-to-fail entity.
White House dashes hopes of California budget help [Reuters]