Despite the fact that jobless numbers are high and foreclosures continue to batter the economy in California, streaks of silver lining are peeping through the gloomy clouds. There is a touch of spring in the foreclosed air.

An analysis of March 2009 done by Center of Continuing Study of the California Economy in Palo Alto, states that the dire conditions have been exaggerated to a great extent. Stephen Levy of the centre explained the lacunae and outlined the reasons behind his hope and what could be done in Sacramento to make use of new opportunities that are arising in the state.

Levy said that the people should know that this recession has been one of the worst of its kind since World War II. But recessions do come to an end even though they leave behind scars. Thus there is hope in the near future in the fields where the Obama government is applying palliatives.

There are discrepancies in statistical figures. The national rate of unemployment is not 25% but 9%. There are no bread lines albeit some middle class people can be seen standing before soup kitchens. The Great Depression had been a great lesson that the administration had not forgotten. Steps were taken to avoid a rerun and this resulted in unemployment insurance and availability of food stamps. A safety net was spread out.

The job losses that are happening are very largely cyclical and do not speak of any long term loss in the key base of the country’s economy. Most of the unemployment stemmed from the crisis in the housing sector. It is this that led to less spending by the consumers. So once the lenders start lending things will start moving again.

The primary cause of the recession is a shortage of customers. There are many houses selling at affordable prices but buyers are not there. People are worried about investing in housing. The task of the government is two fold – providing for money flow so that it reaches the pockets of the people. The people will then have to decide whether they want to be customers or savers. The government is offering tax cuts and this money, it is hoped, will lead to spending Secondly the government itself could become a customer and give a kick to spending on a jumbo scale by investing in weatherization schemes and improving the infrastructure.