Mark Zandi creates huge bubble, blames Republicans

For a good look ast Mark's predictions, look at this from Big Picture: The abysmal track record of Mark Zandi.

Mark Zandi Currently says this:

WASHINGTON (Reuters) - A failure by Congress to raise the U.S. debt limit in time to avoid a default would spark a severe recession, a prominent economist warned lawmakers on Wednesday. Mark Zandi, chief economist at Moody's Analytics, told the congressional Joint Economic Committee that the U.S. Treasury will be unable to meet all of its payment obligations as early as October 18 and by November 1 at the latest without an increase in the $16.7 trillion borrowing cap.

This is how Mark helped create the monster bubble:

Zandi's analysis of the impact of an economic stimulus package on the United States economy was cited by Christina Romer and Jared Bernstein in their report on President Barack Obama's proposed American Recovery and Reinvestment Plan, which became the American Recovery and Reinvestment Act of 2009.[3]

Here is a graph of Mark Zandi's bubble. His bubble, the one he created with help from Romer and Obama is the third one, the one about to crash:



Here he explains how a huge bubble is fine and dandy:

From Binder and Zandi: In this paper, we use the Moody’s Analytics model of the U.S. economy—adjusted to accommodate some recent financial-market policies—to simulate the macroeconomic effects of the government’s total policy response. We find that its effects on real GDP, jobs, and inflation are huge, and probably averted what could have been called Great Depression 2.0. For example, we estimate that, without the government’s response, GDP in 2010 would be about 11.5 % lower, payroll employment would be less by some 8½ million jobs, and the nation would now be experiencing deflation.

As near as I can tell average growth has been about 2.2%. yearly, 95% of the gains went to the top 1%, California is now the poorest state in the union, and we have increased debt by 7 trillion. Well, that sounds like a huge multiplier less than one. Obama needs a brain before he talks to economists.