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Merced has long had structural unemployment, often around 14 percent. The ratio of jobs to home values didn't make any sense, and everyone kind of knew that a massive bubble was going on.
It popped in Merced long before the meltdown in the global economy and the bailing out of the banks. In 2009, I walk around Merced and kept seeing house after house like this, vacant and foreclosed. This house was located at 736 West 25th Street in Merced, not far from a place called Applegate park. I posted this picture here, originally.