California on the brink.

If anyone can tell me what it means when a state closes for business, I'd love to hear. This country is in such a deep pile of crap I'm surprised people don't just implode as they're walking down the street or driving in their cars. "The reality of a deepening recession" is how investors are taking this. After billions and billions of dollars of bailout money and fraud from every corner, what will keep us from revolting? Why do I feel like this stimulus package will just be the band-aid on a continuously bleeding wound?
I'm looking for answers.