Too great a risk due to them deeming California to go bankrupt?

An influence on ratings of other State budgets and finally a huge dent into the dollar due to the Feds not willing to bail out California.

The greater fall out from this is that it is Ok to bail out banks but not States. A huge political risk for the politicians should California fold. The citizenry will most likely think that their money is being misplaced/ misused, as if that was anything new.

It will likely be another profound wake up call to the US population. Dollar under additional stress.