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.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.