A 'fragile economy' ahead for California

The San Francisco Chronicle reports:

California's softening housing market will undermine the state's economy in the coming two years, but other industry sectors are strong enough to help cushion the impact, according to a report to be released today.

Economists at the UCLA Anderson Forecast laid out a scenario of domino effects as the once-torrid market for residential real estate continues to cool.

The housing slowdown "definitely will have an impact on the health of the economy," said Christopher Thornberg, senior economist at UCLA Anderson. He predicts a soft landing, in which housing "takes some of the 'oomph' out of the economy but doesn't collapse it."

Anyone interested in California should read this one.