Grim economic forecast

California faces a potentially grim economic outlook as the effects of growing foreclosures amid a faltering housing market ripple statewide, experts warned Monday. Daily News.

"We are on the verge of recession," economist Ross DeVol of the Milken Institute said at the institute's annual State of the State Conference in Beverly Hills.

And DeVol, part of a panel examining the impact of problems in the subprime-mortgage industry, said a drop in home sales affects everything from employment and consumer confidence to retail sales and tax revenue.