No more California dreamin': State's six key industries all in big trouble

The saying "as California goes, so goes the nation" may not always be true, but any recovery in the U.S. economy will face strong headwinds if its largest state remains a financial basket case.

Despite the happy headlines proclaiming the "recession is over," California's malaise continues to deepen: California unemployment is over 12 percent, the worst since the Great Depression, and a recent report from Moody's Investors Service suggests California real estate may not recover until 2030. California homes sales declined 12 percent in August -- a continuation of a downtrend which optimists had hoped had finally reversed.

The big question: Are these data points short-term hiccups or evidence of deeper structural decline?