UCLA Economic Forecast: Victory in the Gulf,...

UCLA Economic Forecast: Victory in the Gulf, lower interest rates and bank regulators’ increased flexibility toward problem loans have set the stage for U.S. economic recovery at midyear, UCLA business school forecasters said. The prediction was darker for California, which is facing a $9.5-billion budget deficit over the next 15 months. Problems from drought to slumping home sales to the sluggish aerospace and construction industries persist, said David G. Hensley, head of UCLA’s business forecasting project.