Mark Zandi warnings about 2010
Dow Live Update: Mark Zandi says the housing crash is not over. Yeah. So? Mark Zandi may be a Moody Man but the message is based on hard numbers and evident trends. Home prices actually picked up a bit during this summer, but that was a result of fewer foreclosures as the Home Affordable Modification Program swept up those in most need.
First Quarter 2010 is going to be tough. On homeowners, banks and Obama. As tough as Q1 might get I predict all of 2010 is going to be a year of struggle without any forward momentum.
The U.S. Labor Department is broadcasting a somewhat calmer prediction based on a more stable job market early 2010. Based on what numbers? I think Zandi is more on track when he predicts a new housing slaughter with prices decreasing well over 35% next year.
The overall effect of that on the US economy will be problematic to say the least. As for the Banks that are still shuddering from the last round and are currently upheld by artificial finances.
Zandi also predicted a unemployment rate that will top out during Q3 2010 at 10.7 percent. I would honestly be surprised if that is all.
Be prepared for a slow 2010 on the Dow Jones industrial with extended sideways movements that may be hard to trade agressively.
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- DJIA hovers on the 10000 mark
- Dow crunches optimism trend
- Bank of Japan issues new warnings
- Black Friday weekend resut sets the trend
Seed Newsvine
December 7th, 2009 at 12:31 am
Mark Zandi… Seriously guys, he´s a puppet and what comes out of his mouth is what the government wants or needs him to say for the moment. 0 credibility.