Why California will be in a recession until 2011

California Financial Dreaming: 5 Exhibits Showing Why California will be in a recession until 2011: Revenue Projections, Housing Inventory, Unemployment, Toxic Mortgages, and Consumer Psychology.

It took California only three weeks after passing a $41.6 billion budget deal to fall back into the financial rabbit hole. How much did analyst miss? Try $8 billion. You need to remember that the budget battle started back in fall of 2008 and lingered for months so when the budget passed, it had rosy assumptions from a few months ago. Of course, things since then have deteriorated even further. More and more toxic mortgages in California are imploding and people are walking away from their homes (more).