Are we under-estimating the crisis?

U.S. employers have just slashed another 467,000 jobs, driving the official U.S. unemployment rate to 9.5 percent, its worst level in 26 years. If you include part-time and discouraged workers, 16.5 percent of America’s work force is now jobless! This is the main reason the Dow plunged 223 points on Friday and is now down nearly 500 points from its June high. And all this pales in comparison to California’s fiscal disaster. Remember: California has a GDP of $1.8 trillion, larger than the economies of Russia, Brazil, Canada and India. It’s America’s most populous state with 38 million people. And it’s in the final throes of financial death — bankruptcy.
In Governor Schwarzenegger’s own words, “Our wallet is empty. Our bank is closed. And our credit is dried up.”