Analyst's note:  Extremely troubling.  We've all been watching the economic situation in Greece and wondering if such could really happen within the U.S.  The answer is a resounding "Yes."  We have a number of states in trouble, projected to fester out in 2011, but as the author points out, none maybe so deeply in debt as New York, California and Michigan.  Somehow I think that although probably right as far as he goes, the author does not account for the actions we can expect from our federal gov't and the "federal" reserve - which is neither federal nor a reserve.  BTW, the secret cartel of the federal reserve system -- an instrument of totalitarianism -- needs to be abolished.  For additional light reading on the subject and more insight into the "rest of the story" possible results and why, I highly recommend reading "The Creature from Jekyll Island:  A Second Look at the Federal Reserve" by G. Edward Griffin.  At first glance the book appears huge, but it is well written and reads easily as you come face-to-face with the creature created on Jekyll Island.

"[...] On the left will stand Obama, the unions and the Democrats demanding bailouts for the states and, truly, an end to our federal system of government. Once Washington guarantees state debt and spending, there will be no more state governance, only national rule.

"[...] If it is the states and Obama that blink first, we will free our local governments of the grip of municipal unions, their rigid work rules and their unaffordable pensions. If the Republicans blink first, they will forfeit their right to represent the American people, having backed down from the challenge of our times.

May I also highly recommend the following series of videos:

Creature from Jekyll Island 1 of 12

I almost forgot, the balance of the video can be found by clicking here.