Steven Levy, director of the Center for Continuing Study of the California Economy says that the state is about to begin what should be a short and mild recession. More importantly, he expects housing to hit bottom sometime in 2008. He thinks that the half million new residents expected in California every year will use up existing inventory pretty quickly.
Employment in the state may be down somewhat...The unemployment rate increased from 4.8 percent a year ago to 6.1 percent last month....but analysts are not expecting a deep recession like those of the early '90's and 2000/2001. These were caused by industry-related losses. In the nineties, it was aerospace, and at the turn of the century, the end of the dot-com boom was the villain. Levy says, "None of our lead industries in terms of our economic base are threatened."
It's nice to read some hopeful news, even if it's not a magic solution to the economy's problems.
No comments:
Post a Comment