The California economy will continue to weaken until the housing market hits bottom in the middle of next year, according to a new report from the UCLA Anderson Forecast.

“The continuing plunge in housing prices and skyrocketing foreclosures, a slowing of imports through California’s major ports, and continued mortgage finance-related troubles for the financial industry are taking their toll,” said economist Jerry Nickelsburg. That weakness has “finally overwhelmed other sectors of the economy,” he added.

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