Recession risks are ‘uncomfortably high and moving higher,’ Mark Zandi says
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By Matt Egan, CNN Business 1 hr ago
The war in Ukraine. Red-hot inflation. And rapid interest rate hikes. The economic recovery that began two years ago faces credible threats that could lead to its premature demise.
The US economy has at least a one-in-three chance of sinking into a recession over the next 12 months, Moody’s Analytics chief economist Mark Zandi told CNN.
“Recession risks are uncomfortably high — and moving higher,” Zandi said.
Before Russia invaded Ukraine, economists hoped energy prices and overall inflation would cool off this spring and summer. Now, the inflation outlook has darkened, with prices for gasoline, food, metals and other raw materials rising sharply.
March 25, 2022 at 2:19 PM #478801gordyflParticipant
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CNN left out one word in their whole article — “Sanctions”.
Economic sanctions will have a negative effect not only in the U.S. but throughout much of the world.
There’s something else no one seems to be talking about — The Fed wants to soon unload it’s balance sheet of $9 trillion. We don’t know how much of it he will unload, but that balance sheet has been building up for years.
Then there’s the $30-plus trillion national debt.
So, Biden did come into office with some of these economic problems. Now his economic sanctions probably will push the US into recession.
And what if something unexpected happens like a Wall Street financial crisis? Those banks were too big to fail back then. Now they are even bigger.
Then we have record high personal loans — auto, credit, student, mortgages. A recession now could snowball into Great Recession Part 2. And if we do reach a recession, I will not be one yelling out “Freedom!”
March 25, 2022 at 3:17 PM #478820Utopian LeftistParticipant
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I am of the opinion that the Great Recession never ended. Maybe they officially announced its end, but what happened is that they replaced the old, good jobs with new, wage-slave jobs; that’s all.
At this point, over fifty percent of Americans are now poor or working poor. That means half the country cannot survive without government assistance. Call it ‘Recession’, ‘Depression’, or “our inevitable regression to third-world status,” shit by any other name would smell as rancid. Wall Street fools look on and smugly conclude that the economy is healthy because the stock market is doing so well. Record highs. Ha. Pride always comes before the fall . . ..
“It is no measure of health to be well adjusted to a profoundly sick society.” ~ Krishnamurti
"Given the choice between a Republican and a Democrat who acts like a Republican, the voter will choose a Republican every time." ~ Harry Truman
March 25, 2022 at 2:54 PM #478807Ohio BarbarianModerator
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Never let your morals stop you from doing the right thing.--Isaac Asimov
The United States is also a one-party state but, with typical American extravagance, they have two of them.--Julius Nyerere
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