A brave new economy – California budget implications for real estate – 4 key metrics highlighting a very weak California economy

Over the weekend it was announced that California’s large $9 billion budget deficit was no longer $9 billion but $16 billion. Whoops. Last week J.P. Morgan Chase, a darling of the Federal Reserve, reported a $2 billion trading loss on “synthetic derivatives” yet still had the audacity to state no further regulation was needed. Whoops. What we have here is a system of phony numbers and massive speculation. This plays into the giant pool of shadow inventory sitting in bank

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