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California Leads Way To Consumer Bust

Posted on May 16, 2008

The International Herald Tribune reports Californians leading the way to consumer bust.As it did when the housing bubble began to burst, California is leading the way in the next leg: a consumer bust.Squeezed by rising unemployment, inflation in food and energy costs and plunging home values, Californians are cutting back on spending. Besides causing woes for state and local government, the cutback is giving California's economy another knock and makes further job losses, home repossessions and banking problems more likely.The figures are pretty bad. The median home price has fallen by 29 perc...

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