Economic Report:

By Jesse Russell

The U.S. Conference of Mayors has issued an especially grim report concerning property values. The report suggests that homeowners could lose equity over the next year of $1.2 trillion dollars and they project an increase in foreclosures of at least 1.4 million. The decline in home prices across the country will average 7 percent, while California will be hit the hardest, seeing a decline of 16 percent. The ripple effect could result in as many as 524,000 fewer jobs being created in 2008.