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.