Listening to the broadcasters on some of the Business Networks, from Squawk Box (U.S. and Europe) to Fox Business, it is clear that the economic crisis facing California and its residents is either completely misunderstood or being ignored. Statistically, if California were a separate country (which many throughout the US believe is so) it would be one of the largest economies in the world. It cannot be lost on the national economy that more than 10% of the nation's population live in California and therefore, so it has not less than 10% of the housing market. The largest number and percentage of cars sold in the world in any one region are sold in California. And, where do so many car companies have design centers, but in and around Los Angeles. The ports of Los Angeles, Long Beach, San Diego, Ventura and Oakland are some of the busiest ports of entry from Asia. California remains the bread basket of the country. Having just spent a week in both Calgary, Alberta, Canada and Minneapolis, MN, I was not surprised to find the food markets having several rows of food products with California labels; especially fruit and vegetables. Make no mistake, but that the purported budget resolution is a joke, filled with smoke and mirrors. At the same time as the state is taking a greater percentage of the real property tax dollar from the counties, county tax assessors are reducing the valuations of real properties (many purchased within the last 5 years), thereby further reducing real property tax revenue. And, many of these properties are both assessed lower and appraised lower than the amount owing on the first deeds of trust! What happens to the credit markets when California cities and counties begin filing bankruptcy (as Orange County had done)? Our politicians and economists must take their heads out of where the sun doesn't shine and address California's insolvency; otherwise, we will have our own Iceland on our hands, with a far worse national and global implication. The California system of budget by proposition must be thrown out, replaced with an affordability indexed budget based upon actual revenues limiting spending. As the consumer is learning - if it is not in your pocket, you cannot spend it! Just my two cents!