Cali IOUs rated BBB and etc.

Saw this at the Wall Street Journal.
" ...Gov. Arnold Schwarzenegger and legislative leaders failed to produce a result. Amid the budget deadlock, Fitch Ratings on Monday dropped California's bond rating to BBB, down from A minus, the latest in a series of ratings downgrades for the state. "
Getting close to junk bond status, this is quite disconcerting. If the Americans only understood the magnitude of this crisis. To make things worse,

" A group of the biggest U.S. banks said they would stop accepting California's IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap. "

That will take place on July 10th, a truly unfortunate period. The American dream, land of opportunities, is it all just a pipe dream?

Given all this info, the obvious means of making a profit then lies in shorting companies affected by this, directly or indirectly.