clock menu more-arrow no yes

Filed under:

Tangible Effects

New, 7 comments

The housing crash is clearly impacting the economy, writes Peter Hong in today's Los Angeles Times. The state's unemployment rate—7.3 percent—is at a 12-year-high "and it all traces back to the housing downturn. For every area job lost in construction, real estate or banking, three other positions will disappear." Also affecting the crappy economy are homeowners with abodes declining in value; these people tend to spend less, which, of course, affects everything. Chapman University economist Esmael Adibi says things will get worse before they get better; look for the unemployment rate to rise another half-percentage point. In the meantime, do your part and panic. [LA Times] (Pictured: an old-timey bank run)