"I don't think the economy is in a recession, at least not at this point, Zandi told the outlet. But it feels like it's on the brink, it's on the precipice of this recession. Zandi was among the first economists to warn of an impending financial crisis before the 2008 housing market crash. In a 2006 Moody's report titled Housing at the Tipping Point, he cautioned that a housing downturn might escalate into a more severe collapse."
"Zandi pointed to employment as the most pressing warning sign with job growth slowed to a virtual standstill. He said that most new positions are concentrated in the health care, education and government sectors. That's the firewall between recession and no recession, Zandi said. So we're not in recession, but I'd say the indicator that's flashing reddest is jobs."
The economy is not currently in recession but sits close to a tipping point due to weakening labor-market indicators and policy-driven pressures. Job growth has slowed to a virtual standstill, with most new positions concentrated in health care, education and government, and low layoffs currently preventing recession. A decline in monthly payroll employment would signal a move into recession. Tariffs and restrictive immigration policy are contributing to rising prices, consumer-visible inflation, and strains in housing and building materials, which together increase financial pressure and could amplify a downturn.
Read at www.housingwire.com
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