State's Jobless Rate Won't Improve Until Homebuilding Does

The L.A. Times' Money and Company blog gives us the bad news on California's unemployment numbers today, along with an indirect quote to note from economist Sung Won Sohn at Cal State Channel Islands in Camarillo.

Sohn says that California's dependence on the real estate industry is going to continue to cause pain until home-building starts again.

So again , we'd remind policy-makers at the local, state, and national level that actions should be taken to incentivize homebuilding, not cause even more difficulties. Reducing and deferring fees is a good first step, and we'd again suggest to Congress that now is not the time to eliminate Freddie Mac  and Fannie Mae - or to limit or get rid of altogether the mortgage interest deduction.