The U.S. Conference of Mayors today released a 17-page report titled The Mortgage Crisis: Economic and Fiscal Implications for Metro Areas, and it makes some fairly dire predications for the coming year -- among them, that the growing number of home foreclosures will "result in 524,000 fewer jobs being created next year and a potential loss of $6.6 billion in tax revenues in ten states."
Which is only the tip of what's apparently a rapidly melting iceberg. The report -- which says "the foreclosure crisis will have profound economic effects in 2008" -- also predicts that major metropolitan areas will be hardest hit, losing billions of dollars in economic activity -- or gross metropolitan product. Says the report: "The largest metro, New York, loses over $10 billion in 2008 economic output as a result of the mortgage crisis, followed by Los Angeles ($8.3 billion), Dallas ($4.0 billion), Washington ($4.0 billion), and Chicago ($3.9 billion)."
The good news: The report doesn't project a recession. Nor does it predict an alien invasion. --Robert Wilonsky
Keep the Dallas Observer Free... Since we started the Dallas Observer, it has been defined as the free, independent voice of Dallas, and we would like to keep it that way. Offering our readers free access to incisive coverage of local news, food and culture. Producing stories on everything from political scandals to the hottest new bands, with gutsy reporting, stylish writing, and staffers who've won everything from the Society of Professional Journalists' Sigma Delta Chi feature-writing award to the Casey Medal for Meritorious Journalism. But with local journalism's existence under siege and advertising revenue setbacks having a larger impact, it is important now more than ever for us to rally support behind funding our local journalism. You can help by participating in our "I Support" membership program, allowing us to keep covering Dallas with no paywalls.