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“This is not amazing,” Mark Zandi, chief economist at Moody’s Analytics, said of the strong economic data. “This is a mirage.”
“It doesn’t take a genius to figure out how to juice up growth: you borrow money and cut everyone a check,” he said. “A year from now or two years from now, there is a very dark side to all of this, and we will see it.”
The extra economic stimulus is driving up the risk for a recession in 2020, Zandi said. Longer term, the tax cuts are projected to add $1.5 trillion to the deficit over the next 10 years.
The deficit will top $1 trillion in 2020, the CBO said. The deficit was $620 billion in 2016, President Obama’s last year in office.
Zandi warned a reckoning is coming from the large deficit-financed stimulus at a time the economy already has been expanding for several years.
“The recession odds are very high for 2020,” he said.
“This is classic business cycle. We’ve seen it 10 times since World War II,” Zandi said. “It will end the same way the 10 other cycles have ended, very likely in a recession.”
“This is not amazing,” Mark Zandi, chief economist at Moody’s Analytics, said of the strong economic data. “This is a mirage.”
“It doesn’t take a genius to figure out how to juice up growth: you borrow money and cut everyone a check,” he said. “A year from now or two years from now, there is a very dark side to all of this, and we will see it.”
The extra economic stimulus is driving up the risk for a recession in 2020, Zandi said. Longer term, the tax cuts are projected to add $1.5 trillion to the deficit over the next 10 years.
The deficit will top $1 trillion in 2020, the CBO said. The deficit was $620 billion in 2016, President Obama’s last year in office.
Zandi warned a reckoning is coming from the large deficit-financed stimulus at a time the economy already has been expanding for several years.
“The recession odds are very high for 2020,” he said.
“This is classic business cycle. We’ve seen it 10 times since World War II,” Zandi said. “It will end the same way the 10 other cycles have ended, very likely in a recession.”
