San Diego housing market will also be dinged when the government teet starts running dry. Government employees and government contractors make up decent sized segment of the SD labor market. Not sure of the local vs Fed breakdown, but DoD has to be at increased risk of layoffs given upcoming fiscal debt ceiling fight,

It looks like house Republicans are gonna bring it to the brink to force major spending cuts, with default and government shut down risk higher.

Republicans are focused on entitlement cuts, but defense cuts may come into larger play as democrats seek to preserve some of social programs.

IMHO both will get cut.

I talked with good amigo who is civilian DoD employee in DC area, they are all getting nervous and the DoD contractors are getting in near panic mode, they will be the first to go,

A good career strategy by those in the government, is a revolving door strategy. During the fat times you work as contractor with elevated salary. There is implicit understanding that with that higher salary there is reduced job security. As times get bad those contractors with make a rush to govt positions to wait out the leaner times and continue to suckle for a few years.

He was telling me that many of them do actually joke about the breast feeding analogy. I remember hearing similar stuff when I was working in DC area a while back.