We hear a lot about Greece, Portugal, Ireland and other rather small Economies. What happened to California, much bigger than many of the troubled nations we read about everyday? Michael Lewis on California, from Vanity Fair.

The smart money says the U.S. economy will splinter, with some states thriving, some states not, and all eyes are on California as the nightmare scenario. After a hair-raising visit with former governor Arnold Schwarzenegger, who explains why the Golden State has cratered, Michael Lewis goes where the buck literally stops—the local level, where the likes of San Jose mayor Chuck Reed and Vallejo fire chief Paige Meyer are trying to avert even worse catastrophes and rethink what it means to be a society.

Full article here.