Tough Love: The Fed Says "No" to California

The Federal Reserve has refused the State of California's request to guarantee the state's bonds. This is an unexpected surprise! California has the worst credit rating of any state in the country, and the idea of extended the U.S. government's credit rating (which is also sinking fast) and protection to the most profligate state in the union is not appealing to most of the other citizens in the country. Perhaps the Fed's decision is one of expedience; by extending protection to California, the Fed would simultaneously risk sacrificing the credit rating of the entire country for political expediency.

Let California sink or swim! Let them live with the consequences of their over-spending and the prostitution of their reputation!