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The economy should hit its stride late into next year, says Moody's Analytic's Mark Zandi. He's...

The economy should hit its stride late into next year, says Moody's Analytic's Mark Zandi. He's forecasting 4% growth into 2014, citing continued strength in U.S. corporations due to cost cuts and better profit margins. All we need to do is "nail down those fiscal issues," Zandi says. “By 2014-15, the surprise is going to be how strong the economy is growing.”
Comments (26)
  • Joe Eifrid
    , contributor
    Comments (336) | Send Message
    Sorry, I don't see the connection. Just because US corporations cut their cost and have better profit margins, how does that add to GDP? Seems to me part of cutting cost would be laying off workers. Laid off workers tend not to go on spending sprees. Less consumer sales would tend to put a dent into GDP.
    29 Aug 2012, 08:21 PM Reply Like
  • QuantRec
    , contributor
    Comments (438) | Send Message
    In a theoretical world this matters. Theory of an economist looking a few years ahead with optimistic nonsense predictions.
    29 Aug 2012, 11:08 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
    Corporate profits do contribute to GDP so that is a measurable gain but you are right what are the results of cost cutting?
    30 Aug 2012, 12:13 AM Reply Like
    , contributor
    Comments (10250) | Send Message
    Perhaps Mr. Zandi could explain to all us civilians what would be the driving factors that will change unemployment and personal income. If we could just get another 5 million people to go to work, then we'd be back on track.
    30 Aug 2012, 07:12 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
    Not if Obama has anything to do with it.
    29 Aug 2012, 08:24 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (5779) | Send Message
    Must be assuming Obama is gone.
    29 Aug 2012, 09:31 PM Reply Like
  • GaltMachine
    , contributor
    Comments (1135) | Send Message


    He was one of the key economists on the Obama team and one of the advisors that came up with the jobs saved or created metric from the original stimulus.


    His spreadsheet says it must be so and therefore it is!


    From 2010:

    “The economy has shed some three million jobs over the past year, but it would have lost closer to five million without stimulus,” said Mark Zandi, who is currently advising Congressional Democrats but also advised Senator John McCain, the 2008 Republican presidential nominee. “The economy is still struggling, but it would have been much worse without stimulus.”


    Mr. Zandi said: “It’s legitimate to debate the efficiency of the stimulus; one could say, ‘You’re spending $800 billion plus and look at what we’re getting for it.’ But to say that this has not helped the job market is not correct.”
    29 Aug 2012, 09:41 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
    What about UE? If the economy grows because corps continue to cut costs and probably headcount and raise prices that might make the macro number look good. But what about the standard of living of the forgotten US Citizen?


    And really this seems like a bunch of hot air. Why would WDC fix all these fiscal issues and in such a short time frame.
    29 Aug 2012, 08:25 PM Reply Like
  • SmashFinance
    , contributor
    Comments (34) | Send Message
    Zandi is wrong... yet again...


    29 Aug 2012, 08:33 PM Reply Like
  • CaladesiKid2
    , contributor
    Comments (271) | Send Message
    Mark Zandi has been a perpetual cheerleader for the current administration. In his numerous television appearances he continues to state politically biased viewpoints with little basis in fact. Consider the source of these prognostications. Why does he even get any coverage on his persistently inaccurate projections?
    29 Aug 2012, 08:38 PM Reply Like
  • HarryWanger
    , contributor
    Comments (181) | Send Message
    "All we need to do is "nail down those fiscal issues," Zandi says".


    -That sounds like a joke. Really? That should cure everything from:


    -High unemployment
    -Europe imploding
    -China slowing rapidly


    And every other gigantic issue out there. Nice quote though. It made me laugh.
    29 Aug 2012, 08:48 PM Reply Like
  • HarryWanger
    , contributor
    Comments (181) | Send Message
    Oh, I forgot, throw Australia implosion in everything into the mix. But we'll be fine, Mark says so.
    29 Aug 2012, 09:59 PM Reply Like
  • bearfund
    , contributor
    Comments (1534) | Send Message
    There's another way of looking at it, too. All we need to do is "nail down those fiscal issues" could easily be compared to "This man is perfectly healthy; all we need to do is remove this javelin from his skull, repair all the pulverised brain tissue, restart his heart, and sew him back up, all while somehow fighting off this rampaging horde of barbarians determined to stop us!" That, and if only the javelin hadn't already killed him dead a week ago.
    29 Aug 2012, 11:57 PM Reply Like
  • Glocks-n-Gold
    , contributor
    Comments (189) | Send Message
    If we could legalize whatever it is Zandi is inhaling...
    29 Aug 2012, 09:27 PM Reply Like
  • The_Hammer
    , contributor
    Comments (3809) | Send Message
    this guy is useless.
    29 Aug 2012, 09:28 PM Reply Like
  • Josh ODonnell
    , contributor
    Comments (229) | Send Message
    Nail down the fiscal issues> You mean paying off the $16 trillion in debt? There is no possible way to pay that off, and thats really all that matters..its what is keeping the U.S. from real long term growth...


    Only way we pay off the debt is to make massive cuts and use every penny the fed takes in from income tax. That wont happen... People need to get paid. So good luck w/ that.
    29 Aug 2012, 09:30 PM Reply Like
  • chanthirani
    , contributor
    Comments (465) | Send Message
    Forget the $16 trillion in debt. Can we even get a balanced budget?


    I notice some anti-Obama remarks out there. It's not just Obama. It's the entire Congress, both parties that are not doing their jobs.


    Last year after both parties could not come to some sort of agreement on the budget deficit, Congress voted themselves a pay increase. Wish I was in a position where I could vote a pay rise for myself?
    29 Aug 2012, 09:45 PM Reply Like
  • divinecomedy
    , contributor
    Comments (466) | Send Message
    Yep, at this point I am surprised people can still say that the parties are different. Whatever the differences are, the result's the same i.e. the US going down the tube.
    29 Aug 2012, 10:39 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
    Zandi knows the Chinese will buy US via a takeunder in late 2013 as they bail out the 2013 recession !
    29 Aug 2012, 09:30 PM Reply Like
  • QuantRec
    , contributor
    Comments (438) | Send Message
    Chinese can not buy the US.


    They NEED US 'CONSUMERS' in perpetual debt to sell them more and more crap.
    29 Aug 2012, 11:09 PM Reply Like
  • thefundamentals
    , contributor
    Comments (19) | Send Message
    But what about unemployment? More cost cutting from US corporations = less hiring.


    Corporate profits =/= strong economy, especially in these times
    29 Aug 2012, 10:21 PM Reply Like
  • Joe Dirnfeld
    , contributor
    Comments (1128) | Send Message
    Obama must go, then zandi will be gone too.
    29 Aug 2012, 11:18 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (2000) | Send Message
    Fairy Tale.
    29 Aug 2012, 11:25 PM Reply Like
  • SmashFinance
    , contributor
    Comments (34) | Send Message
    @quant.... why does China need US consumers with more debt than they can handle... they have a BILLION people with fresh, virgin balance sheets waiting to exploit at home
    29 Aug 2012, 11:32 PM Reply Like
  • bearfund
    , contributor
    Comments (1534) | Send Message
    Part of me wants to answer that it's because the Chinese aren't stupid enough to spend money they don't have, but that would be a lie. A more plausible answer might be that the Chinese don't yet have the opportunity to vote themselves a share of OPM. Once they get that, they lose any incentive to save and will look just like Americans.
    30 Aug 2012, 12:00 AM Reply Like
  • pokalolo
    , contributor
    Comments (318) | Send Message
    I fear all the calls for S&P 1650 and a roaring DOW by years end are all pie in the sky and assume Romney will win. I do not share that view. I see the Chinese buying up the US at a faster pace,but, just not Gov. paper. There buying MBS and the BOC is loaning huge amounts of consumer mortgage money. There also buying shares in US corporations on the open market. Money talks and b/s walks ! It is truer than true.


    I agree with above comments. Mr.. Zandi is a shill for the Obama people and he might secretly be married to Fareed Zakaria... pok
    30 Aug 2012, 07:09 AM Reply Like
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