December 26, 2007
Real Estate Slump = Recession
Thanks in large part to fallout from the housing market, an economic recession may be unavoidable, according to this L.A. Times article.
California’s employers added only a net 900 new jobs to total nonfarm payrolls last month, increasing some economists’ concerns that the weak housing market and mortgage crisis could push the state into a recession.
How long will the economic downturn last?
“We see substantial weakness in real estate and employment growth below 1% through 2009,” said Ryan Ratcliff, the forecast’s head economist. “It will be pretty slow in 2008 and better in 2009.”
