Here’s Mark Zandi, Chief Economist at Moody’s, a guy who thinks that Obamanomics has saved the world:
The end to this long painful economic downturn is coming into view. The recession has more to run … The turn in the economy is largely due to the unprecedented policy response by the Federal Reserve, the Obama administration and Congress and policymakers across the globe. Central banks have slashed interest rates to zero and are printing money to restart lending. It is working. Businesses can raise short-term money again to finance their day-to-day operations and mortgage rates are at record lows allowing homeowners refinance and putting a floor under the beleaguered housing market. The fiscal stimulus package passed just a few months ago is already helping as tax cuts get into checking accounts and the infrastructure spending ramps up. Efforts to buoy the banking system appear successful. The stress tests the nation’s largest banks just completed were indeed very stressful. While the banks have more work to do, they can withstand the darkest of economic scenarios…Nonetheless, it is fair to say that policymakers learned a key lesson from the great depression, namely that when everyone is panicked, government must act forcefully.
Meanwhile, foreclosures are on a roll.
The number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April compared with the same month last year, with Nevada, Florida and California showing the highest rates, according to data released Wednesday.
More than 342,000 households received at least one foreclosure-related notice in April, RealtyTrac Inc. said. That means one in every 374 U.S. housing units received a foreclosure filing last month, the highest monthly rate since the Irvine, Calif.-based foreclosure listing firm began its report in January 2005.
