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...commissions and hearings are often yawn-inspiring affairs. But this one, officially called the Financial Crisis Inquiry Commission (FCIC), could trigger some fireworks in part because of the severe damage caused by the financial-industry meltdown. What's more, the commission's chair Phil Angelides, a Democrat and former California state treasurer, has already come out swinging against Wall Street, calling the bonuses financial firms are planning to hand out soon for last year "unjustifiably wrong." So it's no real surprise that the first ones to be in the hot seat are the bankers themselves. (See pictures of Americans...

Author: /time Magazine | Title: Hearings to Begin on Causes of Financial Crisis | 1/11/2010 | See Source »

...TIME's California covers...

Author: /time Magazine | Title: California Deficit: Arnold Has to Make 'Sophie's Choice' | 1/9/2010 | See Source »

Although Schwarzenegger insists he will not raise taxes, in his speech, he requested $6.9 billion in aid from Washington. This would not be a bailout, he said, but a demand for fairness. "When President Clinton was in office, California got back 94 cents on the dollar from the Federal Government. Today, we only get 78 cents back. But in the meantime, Texas gets 94 cents, Pennsylvania gets $1.07," he said. "And guess what New Mexico gets? $2.03." Without the additional federal money, Schwarzenegger said, he will again propose the elimination of CalWorks, the state's welfare-to-work program...

Author: /time Magazine | Title: California Deficit: Arnold Has to Make 'Sophie's Choice' | 1/9/2010 | See Source »

...governor's proposed cuts go through, it will shred the safety net," says Jean Ross, executive director of the California Budget Project, a think tank focused on low- and middle-income families. A recent study by this nonpartisan group found that the state, now suffering 12.3% unemployment, has lost all of the nonfarm jobs gained during the recent economic expansion. Nonfarm employment rose from 14.3 million in 2003 to a peak of 15.2 million in 2007. By July, it had fallen to 14.2 million...

Author: /time Magazine | Title: California Deficit: Arnold Has to Make 'Sophie's Choice' | 1/9/2010 | See Source »

...Read why California is still America's future...

Author: /time Magazine | Title: California Deficit: Arnold Has to Make 'Sophie's Choice' | 1/9/2010 | See Source »

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