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Economy

California Home Prices Plunge, And State Faces Need For US Aid

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By Douglas A. McIntyre Updated Published
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bearThe RealtyTrac reports that one in every 138 housing units in California received a foreclosure notice last month. Foreclosure activity in the state is up 42% from April of last year. The trend has to hurt home prices, and the state tax base. That will force California to try to raise $15 billion through bond offerings and request that the US government back the paper.

Bloomberg is reporting, “California is unlikely to run out of cash and go broke as a patchwork of federal aid, shifted allocations and delayed spending keep it solvent at least through September, according to Philip J. Fischer, municipal strategist at Bank of America Corp.’s Merrill Lynch & Co.”

The state may be fine, but American taxpayers will end up backing another crippled horse.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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