YBK, THE SEQUEL: Foreclosure activity (ie., foreclosures and notice of default) in California has more than doubled in the second quarter of this year. Although that is a slight decline from the first quarter, and California remains below the national norm in terms of foreclosures, these are frightening numbers, particularly when you combine this with skyrocketing energy costs and the percentage of adjustable-rate mortgages homeowners have in this state. More foreclosures will lead to declining home values, which will diminish the net worth of property owners, making it harder to borrow and invest, leading to more defaults and bankruptcies, as people desperately try to use the last remaining resort to keeping their homes.

Oh, and have I mentioned they changed the bankruptcy laws last year....