UCLA warns of state recession

After predicting for the past four years that California will be able to avoid a downturn, UCLA economists now say the state may plunge into recession because of the ongoing financial crisis. Gregory J. Wilcox in the Daily News.,

"Worst-case, we can go into a real deep recession," said David Shulman, senior economist at the university's Anderson Forecast, which for 50 years has analyzed and provided predictions on the California and U.S. economies.

The third-quarter report was released today but was prepared before last week's financial storm that engulfed American International Group, forced Lehman Brothers into bankruptcy and prompted the federal government to prop up the $3.3 trillion money-market-fund sector.