.California is the world's eighth largest economy. It is just behind Italy and ahead of Spain and Canada. It is larger than Brazil, South Korea, India, Mexico and Russia. (Data as of 2005.)
Like Greece, California's debt is completely unsustainable under its present socialist philosophies. There appears to be nothing California can do that will balance the budget without people rioting to demand their $5,000 per month welfare benefits, or raising taxes and causing a mass exodus of business that will completely destroy the economy.
If you can get out of California, now would be a good time. If you have a business in California, you definitely need to relocate to another state where you can actually make money.
Here is a good summary: