‘California and Bust:' 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

◼ In San Jose, the cost of retirement benefits and contracts with police and fire agencies has been cannibalizing government services for years, and the process is about to sharply accelerate. - San Diego Union-Tribune

In Vallejo, the cost of contracts with police officers and firefighters led to a declaration of bankruptcy in 2008. Now City Hall feels like a ghost town, roads go unpaved and traffic lights are set on permanent flashing mode. Public services are skimpy – with no prospects of a rebound in sight. ...

As Vallejo and San Jose illustrate, a painful new era looms for many local governments. Some will go belly-up. Some will muddle through. It all hinges on the quality of local leadership – starting with leaders who don’t peddle what San Jose’s mayor calls the “delusion” that the status quo is sustainable with some modest tinkering.

◼ ...All eyes are on California as the nightmare scenario - Vanity Fair

◼ A Second Term for Obama Would Make the United States Go as California Has Gone - Tom McClintock/Real Clear Politics