Economic forecast

Evan Leeson / Flickr

Local economist Dick Conway unveiled his economic forecast for the region recently, and he painted an optimistic picture, describing it as "a sunny day, with some clouds".

On this week's Money Matters, financial commentator Greg Heberlein tells KPLU's Dave Meyer that he thinks there's a good case for optimism this year.

There's relatively good news on King County’s budget for 2012: In a big change from recent years, Executive Dow Constantine is proposing no cuts to services. 

Constantine says though it is “surrounded by seas of red ink,” King County is “an island of relative stability” after several years of budget cuts and streamlining.

Ted S. Warren / AP

A "...boatload of loans, sitting in foreclosure," or on the verge of being taken back by the banks. Those are the words of one economist, talking about what's happening in the real estate markets of major cities, nation-wide. The greater Seattle area is no exception.

The numbers come from the Case-Schiller index and they're not pretty.

Washington’s budget shortfall has now grown to $5.1 billion over the next two years. That’s the estimate from the Governor’s office after Thursday’s state revenue forecast. 

The state's chief economist, Arun Raha, predicts the state will collect nearly $800 million dollars less than previously forecast for a variety of reasons.

“First we had the volatility in oil prices, because of the political unrest in the Middle East. Now we have the tragedy in Japan the world’s third largest economy and one of the state’s leading trade partners," says Raha.