Eight of the 10 worst real estate markets in the country next year are predicted to be in the state of California. The good news is smart people can start making the fortune of a lifetime right about now in those same places. With the possible exception of Stockton, which will remain a sinkhole no matter what happens.
(Even if this topic bores you, fans of good writing should give that second link a look. One of the most engaging articles on any topic I've seen in a long time. )