Report: California To Suffer More In Recession

The nonprofit Milken Insitute reported late Thursday that the U.S. has entered a recession, and that the impact on California will be greater here than for the rest of the U.S. The Santa Monica-based nonprofit said that based on its study--The Economic Outlook for the United States and California: Slow Growth or Recession?--real GDP has been declining for the past two quarters, due to a combination of the housing market correction, soaring oil prices, a weak labor market, overextended consumers, and the credit market turmoil. The Milken Institute said it believes the impact on California will be more pronounced than in other states, due to exposure to mortgage origination, job losses in construction and financial sectors, and the impact of decreased import activity.