Half-priced hoodies: Donate $8/month and get a cozy Marketplace hoodie today. Donate Now
My Two Cents

Zandi’s Forecast

Chris Farrell Jun 12, 2008

Mark Zandi, chief economist at Moody’s Economy.com is out with his latest forecast. It’s gloomy. He is well worth following:

Economists and policymakers may debate whether the economy is technically in
recession, but for the average American household, there is no debate: This is a
recession. Real purchasing power is lower than it was a year ago, and household
balance sheets are worth less. With good reason, consumer confidence is as low
as it has been since the early 1980s.

Here are a couple of highlights:

The average American household’s real income and net worth are down from a year ago.

Households are pinched between a harsh job market that is holding down wages and higher costs for fuel and food.

More housing markets are experiencing a vicious cycle of home price declines and foreclosures.

The Federal Reserve will sacrifice near-term growth for the sake of stable prices and the economy”s longer-term prospects.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.