"We're beginning to see a marked slowdown in Asia," he noted, with Japan's economy "already in recession," China's once-torrid growth slowing to about 9% a year and South Korea's annual growth shrinking to 3.5% or lower.
Many economists now agree with the Anderson prediction that home prices will stop falling next year.
But the economy is too weak for prices to start rising any time soon, most economists said, and prices will remain low as long as the state has a staggering inventory of unsold homes, growing unemployment and tight credit.
Quick passage of a bailout package could keep California's economy from free fall, but it's unlikely to bolster business enough to create the tens of thousands of new jobs needed to stimulate growth, several economists said.
"Nothing they are doing on Wall Street is going to produce jobs in any short time," said Levy, the Palo Alto economist. "We're in for a long, rough time in terms of jobs and unemployment."
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marc.lifsher@latimes.com
peter.hong@latimes.com
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(BEGIN TEXT OF INFOBOX)
Anderson Forecast
UCLA economists predict:
* Housing prices will stop falling next year.
* Unemployment will continue to rise.
* Consumer spending will continue to decline.
* Falling tax revenue coupled with budget cuts will reduce government jobs.
Source: UCLA Anderson Forecast
