 Listen Now!
(2:16 Minutes)
Additional Features | |
Published on Wednesday, May 07, 2008
By Rick Orlov
California and the United States are in the midst of a mild recession brought on by the bursting housing bubble and higher gas and energy prices, the Milken Institute is reporting today.
In an economic forecast, the institute says California is suffering the most and that the economic ills are not expected to ease soon.
"If the U.S. economy has the sniffles, California has a full-blown cold - with all the associated aches and pains," the report said. "California will experience a more severe recession than the nation overall, but the recession will still be mild by historical standards."
The major problem for the state has been the sharp downturn in housing prices and the number of foreclosures as the subprime market collapsed.
The report said the recession is similar to the 2001 slowdown caused by the dot-com bust.
Also adding to the state's problems was the three-month writers strike
Read Full Article...
|
RSS
