Moody’s Mark Zandi is the latest well known economist to jump on the QE3 bandwagon:
”It now seems more likely than not that QE3 will begin in the next couple of months.”
He’s a nice man, a true neo-Keynesian, but he’s been mostly wrong about everything. Except when he sold Economy.com to Moody’s for $27 million. Poor Moody’s. Perhaps that’s why they haven’t downgraded the U.S. yet. He believes though that fiscal and monetary stimulus works. I urge you to read about his dismal record in a piece that Barry Ritholz published by someone who actually did a search of all Zandi’s calls. Maybe that’s why Moody’s calls their economics service the Dismal Scientist.
Obviously Zandi doesn’t understand how the economy works or he wouldn’t be calling for more stimulus. Like most Keynesians he thinks the problem is “inadequate consumer demand.” Which is another way of saying if you stupid people would just start spending everything would be just fine. Nothing could be more wrong.
Why do these respected economists keep insisting we keep pursuing failed policies? Answer: Faith based economics.
Add Zandi to your growing list of economists to ignore.