As Goes California, So Goes America -- And California Isn't Looking Good

The housing recovery we've seen in the past couple of years has largely been driven by the West Coast. Home prices in California plunged 42% from their March 2008 peak during the downturn, and then rebounded 36%.  Prices surged not only because of the extreme drop in prices during the downturn, but also because of "the efficient disposition of distressed homes, low non-distressed inventory, economic recovery, and foreign/second home demand," writes Michelle Meyer, an economist at BofA Merrill L...