Top economist sees increased odds of double-dip recession

[The Northerner]

An economist who advised Democrats on the $787 billion stimulus has increased his prediction of the odds of the economy entering a double-dip recession.

Mark Zandi, the chief economist of Moody’s Analytics, pegged the chances of a second recession at one in three. Just a few weeks ago, he saw only a 20 percent chance of another economic slowdown.

“I don’t think we’ll double-dip, but it will be a close call,” Zandi told reporters Tuesday at a breakfast sponsored by the Christian Science Monitor.

He cited weak consumer confidence, nervous businesses and investors, and plummeting home sales to explain the gloomier outlook.

Zandi, who has advised both political parties on the economy, spoke one day after the National Realtors reported sales of previously owned homes fell in July by 27.2 percent. The housing report was much worse than analysts had expected, and it fueled a drop in stocks on Tuesday.

Read more: http://thehill.com/blogs/on-the-money/801-economy/115743-top-economist-sees-increased-odds-of-double-dip-recession