New York City defaulted on its debts 25 years ago, despite having a huge tax base and some very desirable assets. California has been teetering on the edge of

New York City defaulted on its debts 25 years ago, despite having a huge tax base and some very desirable assets. California has been teetering on the edge of default -- not always making payments on time -- despite having the ability to raise taxes. CA also owns vast assets it too can sell off. Admittedly we'll probably see places like Greece, Italy, Spain and Portugal default first, but it can happen here too.