Katrina is going to muck things up; it's just a question to what degree.
"Mark Zandi" is an American economist and co-founder of Moody's Economy.com, a widely cited source of economic analysis. Moody's Economy.com is part of Moody's Analytics. Prior to founding Economy.com, Zandi was a regional economist at Chase Econometrics.
He was born in Atlanta, Georgia of Iranian descent and grew up in Radnor, Pennsylvania. Zandi received B.S. and Ph.D. degrees in economics from The Wharton School of the University of Pennsylvania. His surname of "Zandi" comes from the Zand dynasty, which ruled southern and south-central Iran (1750–1794) in the eighteenth century.
Zandi's analysis of the impact of an economic stimulus package on the United States economy was cited by Christina Romer and Jared Bernstein in their report on President Barack Obama's proposed American Recovery and Reinvestment Plan, which became the American Recovery and Reinvestment Act of 2009. Zandi has been criticized for assuming government spending multipliers that are too large.If you enjoy these quotes, be sure to check out other famous economists! More Mark Zandi on Wikipedia.
In the next few months, there's no upside. And this winter, we're going to feel it more noticeably as people pay record gas prices and record home-heating bills.
Consumers will see higher prices on coffee beverages and even chocolate if the raw supplies get backed up at the ports. In agricultural products, prices of cereals and breads could decline. If we can't export the wheat and grain, then the excess supply will have to be consumed domestically, pushing down prices.
Most likely the higher prices will slow growth, ... But there is the growing threat that we get a combination of slower growth and higher inflation.
The Port of New Orleans alone imports 250,000 tons of coffee every year.
The economy is going to be hit hard by Katrina, and it is going to be hardest on consumers who are already stretched thin. With the surge in gasoline and home heating oil prices, consumers will have a difficult choice to make between filling their gas tank or spending on other things.
People are able to pull money out of their homes and put it into their gas tanks. So the overall effects on consumer spending have been small.
Greenspan should weigh against asset markets in the good times -- just as he works to support them in the difficult times. He's been one-sided in his policies.
I think they're going to stick to their script, that they're going to continue to tighten at each meeting.