Los Angeles Bankruptcy Law Monitor : Los Angeles Bankruptcy Lawyer & Attorney : Christine Wilton Law Firm : Southern California Chapter 13 & Chapter 7 Bankruptcy, Foreclosure

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By Christine A. Wilton, Esq.

Los Angeles County Economic Development Corporation recently rolled out their 2011-2012 Economic Forecast & Industry Outlook. I was privileged to attend our the Lakewood 2011 Economic Forecast Luncheon hosted by the Greater Lakewood Chamber of Commerce and other local business supporters.  There is the agreement reality that the recession ended in 2009 and economic recovery is underway. I see several problems with this report.

This forecast is overly optimistic and underestimates the realities of  the employment marketplace, housing and the increased debt load of both Americans and its governments. The employment or unemployment numbers fail to include the underemployed who still work for less pay and those that have simply given up looking for work. The other sector that is not being considered in these numbers are the young people looking to get into the workplace, but cannot due to the competition for jobs. Unemployment is at

18.3% in the City of Paramount, and

Norwalk, Bellflower and Long Beach are hovering over 13%, according to Dr. Sidhu's report.

As I have said before, the housing market will continue to stay in a slump as the sub-prime mortgage crisis continues, the Adjustable Rate Mortgage notes adjust upwards and homeowners continue to avoid bankruptcy like the plague for fear of their precious credit scores. We're currently hearing rumblings of another wave of forclosures.  Since California courts don't really care who forecloses or even whether they have perfected their security interest against the Debtor's real property, then we will continue to lose our American Dream en masse.

Consumer spending remains low and the government spending has been propping up this flailing economy. The recession is not over and the lies to the American public must stop. Every one of us must take swift action in terms of dealing with our individual debts before this economy will recover. As my favorite bankruptcy guru Max Gardner always says, "Praise the Lord and pass the bankruptcy petitions."