The U.S. and California economies will slow...

The U.S. and California economies will slow considerably next year--possibly going into a mild recession by the summer, according to economists meeting for the annual UCLA Business Forecasting Conference. The economists also predicted higher interest rates spurred by a prime rate hike to more than 12%. Higher rates and fast-rising housing prices in California may lead to a severe slump in the housing market, the economists said. The group also warned that the California economy is vulnerable to possible deeper cuts in defense spending than predicted.