U.S. ECONOMY LIMPS ALONG, FORGIVENESS OF DEBT TAX RELIEF LIKELY TO BE EXTENDED

The results of economic growth for this third quarter are obviously not yet available, and the second quarter results were not stellar.  Growth of 1.5%, although in the right direction, was not enough to seriously curb unemployment and start a serious job burst for most of the country.  California is better off than most of the country, and ironically, it may be our wonderful mild weather that continues to set us apart as the rest of the country struggled with floods, tornadoes, drought, and record setting heat.  Companies that left for easier environmental standards, or tax breaks, may think seriously about returning as their productivity and profits see some challenges as a result of Mother Nature.  Hmm... something to ponder.  As of now the forgiveness of debt for the 1099 income resulting from short sales has made it into Obama’s 2013 budget, to be extended to include 2013.  Although foreclosures are at a 5 year low, it is appropriate to extend this relief.  After all, foreclosures are at a low precisely because the lenders are optioning to do short sales instead.