Posted on 09/24/2008 11:22:56 AM PDT by NormsRevenge
SAN FRANCISCO (Reuters) – California's sputtering economy is going to get worse, a report released on Wednesday said.
The state's jobless rate will hold above 7 percent through next year as the homes slump grinds on and finance payrolls shrink, according to the UCLA Anderson Forecast.
A "strong undercurrent of housing and finance generated weakness" is dragging down growth in the eighth-largest economy in the world, the report said.
"Our near term quarterly forecast has things getting worse," it said.
"Unemployment will continue to increase to the thin air of 7.4 percent by the end of the year and it will stay in that neighborhood for each quarter in 2009," the report added.
The diversified economies of the Los Angeles and San Francisco Bay areas had been offsetting the drag of the housing downturn in many other parts of the state.
During the housing boom earlier this decade, the Golden State's housing prices skyrocketed, fueled in many areas by risky mortgages responsible for the current foreclosure surge. Home prices in the California have been falling from their peaks, putting new home developments across the state on hold.
Home building's woes combined with worse-than-expected job losses in mortgage financing over the last three months "have finally overwhelmed other sectors of the economy," the UCLA Anderson Forecast report said.
As a result, employers have pared hiring plans and the unemployment outlook for most populous U.S. state is "ugly," the report said.
(Excerpt) Read more at news.yahoo.com ...
That’s what happens when you let the socialists run the state.
Foreshadowing from the United Communist Counties of California if barry wins.
California, the next bailout.
I imagine it will miraculously heal if the messiah president is elected. California deserves to be ruled by the people they elect.
You ain’t seen nothing yet! Wait til SoCal runs out of water in April!
F ‘em.
We should just let the ‘Reconquistas’ have it back!
Dems and their dastardly socialist/progre$$ive misdeeds eating away at the very foundation of the California Republic like termites..
November, Voters .. Wake the heck up!
They’ve done a heck-uv-a job out there with all their socialist policies!
They keep saying they want to raise Shasta dam to hold more water and solve the problem. Except we are in drought and they have released all the water they had for salmon and environmental use. The dam reservoirs are practicaly empty.
B-but, I thought those hard-working illegal immigrants were a boon to the economy.
7%?? PFFffffffffft.
MI unemployment is 8.9% and expected to get worse. High taxes, the incompetent legislature and the Canadian trash in the governor’s mansion will continue to devastate the state until EVERYBODY leaves.
Again, our greatest exports are smart workers, college students and good jobs.
Those “hard-working” immigrants will be the downfall of the state.
No it won’t.
There really are serious problems here, and it won’t turn around that quick. The Central Valley boom really has gone bust; first it was a lot of illegals heading home to Mexico because the construction work dried up, now it working its way through the rest of the population.
As their property values decrease, their muni bond ratings will deteriorate. They’ll pay higher interest, receive fewer property taxes and run higher deficits. But they’ll still vote to keep increasing spending.
Nobody is even mentioning this BS their going to strap us with:
States, provinces have plan to cut emissions:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/09/24/MN4R133L0U.DTL
Helen Thomas is a babe compared to our outlook.
It amazes me that Americans rate the Democrats better for the economy when all they have to do is look at blue states and red states and see the obvious that red states are the states that have growing economies.
If it was a snake, it would have bit them...
I heard last night that because of all the reduced power use and other things, that these credits are selling for a lot less than expected....the whole market is a cluster flop.
That’s why we are and we aren’t in a recession. There are multiple single-state recessions (California, Michigan, New York, etc.) while other parts of the country are more or less untouched by the downturn. INVARIABLY this is due to the rule or misrule by state/local governments.
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