California is too big to fail

• The Chicago Mercantile Exchange (CME) and Citadel abandoned plans for a CDS trading platform, as the interest is no longer there from the bank holding companies acting as the major counter parties
• California's largest debt sale of 8.8bn (last year 5bn) in short term notes, less than 3 WEEKS AFTER IT STOPPED ISSUING IOUs will pay 1.25-1.5% opposed to the anticipated yield of 2-3%. This shows investors are actively going after yield, and risk will be under priced