1
0

Is Mark Zandi a good choice to run the GSEs?


 invite response                
2013 Apr 18, 12:21am   642 views  1 comment

by golfplan18   ➕follow (1)   💰tip   ignore  

http://ochousingnews.com/news/is-mark-zandi-a-good-choice-to-run-the-gses?source=Patrick.net

His actions in looking out for the best interests of taxpayers put him in the firing line of pandering politicians on both sides of the aisle. The left assailed him for refusing to give free money to loan owners. His opposition to principal reduction prevented politicians from buying votes with taxpayer money. The right wanted him removed because he vigorously pursued banks for buy-backs on the bad loans they wrote. The too-big-to-fail banks that donate heavily to right-wing politicians didn’t want to face the repercussions for their actions. With both the left and the right opposed to his actions, it...

#housing

Comments 1 - 1 of 1        Search these comments

1   _   2013 Apr 18, 6:29am  

Zandi has one of the worst records on housing calls

Epic disaster

Associated Press – Feb. 4 2006

“The pendulum, which had been fully in favor of employers, is swinging back in favor of employees,” said Mark Zandi, chief economist at Moody’s Economy.com.”

Newsday – ProQuest Archiver – Aug 9, 2006

“It’s at least three or four quarters before we see the bottom of the housing market,” Zandi said.

Wire & Staff Reports – Oct 27, 2006

“The housing market correction is in full swing but it probably has another year to go before it bottoms out,” said Mark Zandi, chief economist at Moody’s Economy.com.

Los Angeles Times – Jan 6, 2007

“Mark Zandi, chief economist for Moody’s Economy.com, said jobs and wages were growing too fast for their own good. He warned that higher wages could induce companies to raise prices, which could lead workers to demand higher wages — an inflationary wage-price spiral.”

[Note: The chart below shows 3-mo. Changes in total civilian compensation. It seems not to demonstrate any wage-price spiral:

Marketwatch - March 26, 2007

"Zandi sees a bottom for sales in spring as sellers become more motivated and start cutting prices." [Note: In August 2010, new home sales fell to the lowest level since 1963, when the government began to keep records.]

New York Times – March 18, 2007

“Weakness in the market has been concentrated in certain segments,” says Mark Zandi, chief economist of Moody’s Economy.com. “We’re not witnessing the entire housing market in metro areas caving in.”

MTG Foundation – April 28, 2007home prices have declined

“From the housing cycle’s peak in 2005 to its bottom, which likely will come this summer, home prices of new homes will have declined about 10 percent, said Mark Zandi, chief economist of Moody’s Economy.com. By next spring, builders should be enjoying a recovery, but for now, “the housing correction is in full swing,” he said.” [Note; Home prices have declined almost 30%]

USA Today – May 17, 2007

“Mark Zandi, chief economist at Moody’s Economy.com, says the first quarter was probably the low point for growth. Looking ahead, however, he sees unemployment rising to 5% from 4.5% as housing inventory is worked off. “The economy is going to feel softer in the summer and particularly in the fall; mortgage credit problems will be at their apex. If the Fed were going to ease, that’s the time,” Zandi says.”

U.S. News – June 10, 2007

“it’s probably going to take until next summer before things finally bottom out,” Zandi says.”

Associated Press – July 6, 2007

“It’s premature to say the economy is reviving in a consistent way, but I think it is fair to say the economy isn’t going to weaken any further.”

ABC News AM Program – July 27, 2007

“Well, it’s going to take a long time until we’re through. I think we will see mortgage quality, particularly in subprime, weaken all the way through 2008 and in fact, we’ll see elevated levels of delinquency default all the way into 2009.”

CNN – Aug 25, 2007

“ZANDI: No, I don’t think there will be a bailout. I don’t think there should be a bail-out. I do think there are some borrowers who got defrauded in that they can make good on their mortgage payments with a little help. Those folks we should help. The FHA should help them and there is some talk of allowing Fannie and Freddie to extend out more mortgage credit. I think that’s a reasonable good idea.”

Fortune – Aug 23, 2007

“Before the recent rise in rates, Zandi of Economy.com was predicting that national housing prices would fall another 5% over three to five years on top of the 5% they’ve already dropped. Now he’s doubling that estimate to 10% and predicting additional declines of 20% or more in markets like Miami and Las Vegas.”

CNN Money – Sept. 4, 2007

“Economy.com is forecasting that foreclosures will peak at 900,000 or so in 2008, above the 750,000 forecast for 2007. It projects the existing single family median house price will bottom out at just over $200,000 by mid-2008, a little more than 10 percent below its peak in 2005 and the current median of $220,000 today, a level that likely won’t be recovered until 2010, Zandi predicts. He also expects a decline in the number of home sales booked – from the current annualized rate of 6.75 million units to 6 million by the end of 2007. By the end of 2008, Economy.com forecasts home sales will start to exceed 7 million homes a year. Zandi is optimistic, however, that the economy will steer clear of recession given how financially sound and profitable businesses outside the housing sector are and how well positioned the banking system is to weather problems.” [Note: as of today there are approximately 2 million homes in foreclosure, median house price is $182,600. Annualized home sales are running at a 3.8 million level. We know how well positioned the banking system was, and remains, to weather problems. ]

“I don’t think consumer spending will fall unless the job market is contracting. And I’m fundamentally optimistic we won’t see job loss,” Zandi said.”

Pittsburg Post Gazette – Sept 7, 2007

“Mr. Zandi out the possibility of a recession at 40 percent, almost four times the possibility he had estimated in July…He said defaults would not perk until next year”.

CNN – Oct 7, 2007

(on the employment numbers)

Well, wasn’t bad. Its certainly a lot better than feared, it suggests that the economy is not going to slide away into recession, but the economy is still not creating a whole lot of jobs, certainly not enough to keep the unemployment rate from rising and it did in the month and I think it will continue to rise as we make our way into next year. “

Builder 2007 – Oct 25, 2007

“On the positive side, Moody’s Economy.com chief economist Mark Zandi strongly believes that the bottom in new-home sales is hitting now, the fourth quarter of 2007. “It’s going to be so bad, that it’s going to be hard to be even worse in the first quarter of 2008,” Zandi said at the National Association of Home Builders 2007 Fall Construction Forecast Wednesday in Washington. On the down side, this comes from a guy who bought a house in Vero Beach, Fla., in the last year, thinking that he was buying at or near the bottom of the market. Oops.”I caught the falling knife,” Zandi said of his recent home purchase. Zandi, who admits that the housing situation has gotten worse than he expected, said the bottom in housing starts will come in the second or third quarter of 2008, with prices continuing to fall through 2008, reaching their nadir in the fourth quarter of 2008 or first quarter of 2009.”

Bloomberg – December 7, 2007

“Zandi estimates new and existing home sales will bottom at an annualized rate of 5.25 million units in early 2008 from a peak of 8.5 million homes in mid-2005.”

Bloomberg – Feb 9, 2008

“Notwithstanding the intensifying economic gloom, the bottom of the housing downturn is within sight,” chief economist Mark Zandi said in a statement today. “Presuming we see strong action by policymakers to help support the economy and the housing market, prices will begin to recover by the end of this year.”

PBS NBR – April 24, 2008

“Policy prescriptions, like lower interest rates, the fiscal stimulus checks and foreclosure prevention plans should help the housing market find its footing. Still, economist Mark Zandi says it will be next spring before it reaches bottom.”

and plenty more where that came from here below

http://www.ritholtz.com/blog/2010/09/zandi/

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   random   suggestions