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Bay Area Mortgage Crisis: Gloom, Doom . . . No Recession?

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A new report from Global Insight, "The Mortgage Crisis: Economic and Fiscal Implications for Metro Areas," prepared for the U.S. Conference of Mayors, breaks down some of the projected financial impact of the mortgage crisis on the Bay Area. The gloom: The greater San Francisco area is projected to lose $3.6 billion in economic activity; San Jose $1.8 billion. The doom: fallout equates to fewer jobs and reduced government services. The rub? Despite similar effects to other major metro areas (NYC, LA, DC), the firm's report says that there will not be a recession. Small favors.
· Report: Bay Area to lose billions from mortgage crisis [ABC News 7]
· Foreclosures to have 'profound' impact, report warns [USA Today]
· Mayors' Report: Foreclosure Crisis Hits Metro Areas' Economies, Slows GDP, Job Growth & Tax Revenues [PDF]

[Image courtesy the U.S. Conference of Mayors]