Mark Zandi , chief economist at Moody’s Analytics, talks with Bloomberg’s Margaret Brennan about the outlook for the U.S. economy and possibility for another recession.
On the odds of double dipping, Zandi said: “I put it that 1 in 3 right now. If you’d ask me 4–8 weeks ago, I would have said 1 in 4, 12 weeks ago, 1 and 5. So it is rising uncomfortably high. I am assuming that tax rates on upper income households will in fact occur on January 1. If that doesn’t happen, it could reduce the odds back closer to 1 in 4. But 1 in 3, that is uncomfortably high. Particularly we’re at a 9.5% unemployment rate. If we go back into recession, it’s going to be very difficult to get out of it in any graceful way.”
Source: Bloomberg (via YouTube), August 26, 2010.
