Calif. economic forecast has silver lining

December 11, 2008 8:20:00 AM PST
New unemployment numbers are out and new claims jumped to 573,000 - the highest number in 26 years. The trade deficit is up as well - that surprised economists. And the new Anderson forecast is out with mostly, but not all, bad news.

The forecast predicts unemployment will continue to grow from its current 8.2 percent, up to 8.7 percent next year; it will remain high through 2010. To turn this around, it says we'll need a rebound in construction, consumer confidence, and retail. Good news that is coming next fall, just in time for Christmas 2009.

In Sacramento, the downturn means a need for a new spending plan and the governor is now keeping track of how long it's been since he called lawmakers into special session and how big the deficit is getting.

"If we don't put aside our ideological differences and negotiate and solve this problem, we're heading towards a financial Armageddon," said Governor Schwarzenegger.

Another report out this morning from RealtyTrac says foreclosures are up 28 percent in November from November of last year, but they are down seven percent compared to October. That's because in part of the state law which delays the process.

So looking at the positives, we ride out this recession, things begin to turn around next fall. We'll start reporting on some new hiring maybe more so in 2010, and gas prices continue dropping like a stone.


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