If one of more of the car makers fails, unemployment in Michigan could go above 10%. The state is already the mortgage foreclosure capital of the world. The tax base has bee ravaged. Michigan may not be able to take much more.

According to The Wall Street Journal (subscription requited), "Michigan has been in a seven-straight year recession," says Patrick Anderson, chief executive of Anderson Economic Group, an East Lansing, Mich., consulting firm.

The news headlines about states in trouble have gone to California. But it does not rely on one industry for a huge portion of its employment. Car companies are also major tax payers. Michigan's budget could go billions of dollars into the red if that income disappears.

What happens if a car firm goes down? Michigan could go into receivership. It has already happened to several of the cities there, including Flint, one of the largest.

Of course, if that happens, the federal government will be left holding the bag. Congress will have to find another few billion to fix what is becoming a long, long line of bailouts.

Douglas A. McIntyre is an editor at 247wallst.com.