mark zandi, what do you think about that?st: it will be a bad day in the markets, i think, but i do not think that this is the day that markets respond negatively to all of this. it is really down the road, as the senator intimated, into next year, if congress decides they do not want to go further with automatic spending cuts. right now, under the current law, there will be $1.20 trillion in spending cuts the cake in beginning in 2013. of course, congress can take that back between now and then. if they do, that would be the signal that we do not have the political will to do the things that are necessary to achieve political sustainability. in that case, it is possible to construct a scenario where other ratings agencies decide they're going to downgrade. moody's and -- standard and poor's already did that around the debt ceiling debacle. the other major ratings agencies could change their mind. that would be counterproductive. congress needs to follow through engage in the automatic spending cuts. to demonstrate to investo

is an immediate fight that mark zandi was referring to.rt to stop the cuts to medicare payments to doctors and extend unemployment benefits payments that is $200 billion in new deficit spending. an immediate night to keep the government open. there was never any consequence for this. >> chris: we should point out that the supercommittee had super powers because if they had a proposal it was going to -- there would be no amendments to it. no amendments allowed and instead of the supermajority needed to pass the senate, 60 votes, only 51. if the supercommittee fails all that goes out the window and back to the same old savage making that we normally have. let's assume and quite frankly i think the logical assumption, nothing gets done. what do you think the impact is politically? >> it i personally don't like the supercommittees with super powers. i like sausage making. i think it is called democracy. the key thing that will happen over the next year is something called an election. we will have a bigger one next year. the one political effe

we'll ask mark zandi. and newt gingrich rises to the most dangerous place in politics. the top of therepublican field . we'll ask if the former speaker can hold on where others have failed. >> and as we approach thanksgiving. all on fox news sunday. hello from fox news in washington. well, after months of secret talks and public posturing, we are now in the end game for the super committee. will they make a deal by wednesday to cut the deficit by 1.2 trillion? first the republican co-chair hensarling. welcome back to "fox news sunday". >> good morning. >> is this thing dead? >> no one want to give up hope. reality is starting to overtake hope. 12 good people who invested a lot and trying to find common ground . so takes that taken place over the weekend and they will continue to take place. but we need to come to an agreement and get an estimated by the congressional office by the end of monday. it is a daunting challenge. >> is there any sign that republicans are going to make a big concession or democrats will make a big decision. you have over 24 hours to make a conc

when mark zandy said 15 percent unemployment that is nonsense . the reason we have worst recovery and unemployment is because of the stim tim spending and barack obama has to reverse. i had a lovely conversation four or five months ago austin golsbee. we talked about how he could get it back on track and he could. barack obama is a fine, fine person and i really think he is an american success story but he's just wrong. >> when you talked to art, he was one . architects of the spend stimulus. did he agree that tax cuts were the answer. >> probably not. i am sure he didn't, >> did you find any common ground. what is advocated is more of what we did then. and maybe just bigger allotments. >> the problem with the stimulus bill. you can see it clearly if you have a two-person world. it is good economics it is works. two farmers a and b. if b gets unemployment benefits. who pays for them. farmer a. government spending is taxation. and they say over and over. you can't bail them out of the trouble without putting someone else into it. and we have gone w

mark zandi is chief economist of moody's analytics and joins us now. mark, good morning.et's get -- obviously, the numbers just out. your first analysis, your first read on what this tells us. >> i'm encouraged by the numbers. as you point out, the 80,000 job game was on the light side. but if you look at the other elements of the report, hours worked, the revisions to the previous data, the fact that household employment increased, the daily unemployment rate declined, it all suggested that the labor market is at -- at the very least, is stabilizing. and i suspect it's beginning to reaccelerate. so good news. and mark, let me ask you a layman's question. >> yeah. >> less jobs created than we expected, but the unemployment rate drops. why? >> well, it's -- here's a geeky answer. sorry. either based on two different surveys. and a lot does depend on how many people come into the labor force. so there's a lot of moving parts here. but it's not uncommon for these numbers to move in different directions. >> and what do we expect -- i guess what we're all looking for is, is th

economists mark zandy says he does not believe the standoff will lead to another u.s.redit down grade. in washington, i'm brian mooar, wbaltv 11 news. >> it was fun today. ravens wrap-up, taking care of that but also some college basketball coming up next in sports. >> well, have that umbrella handy. we had a dry day today but the rain is moving in now. will be around for a while. the weather plus forecast. just ahead, a few showers in just ahead, a few showers in the for a great vacation you can't beat mississippi. sure you can, it's called louisiana. hang on, florida's where folk's want to be. that's only until they get a taste of alabama hospitality. we can't agree on which state's best, but we can agree on one thing, wherever you vacation in the gulf, you'll have a great time. great seafood, beautiful beaches and fun for the whole family. we've got intimate bed and breakfast right on the water. cafe's with views of the gulf. go blue water fishing, ride a kayak, or just enjoy the world's best weather and soak up the world's best sun. we've gone all out to make this

mark zandi, chief economist at moody's analytics, will unveil his economic forecast at a conference later this week. he joins us now with a preview. >> susie: hi, mark, how are you? >> hi, susie. >> susie: so, here is what youwr conference late they are week. no recession, gdp growth of about 2.8 percent for 2012. the unemployment rate is going to come down a notch to 8.8 percent. now we're at 9.1 percent. you think that 1.4 million jobs will be created. so, still it looks -- even though there is no rcession it looks like the year ahead is more slow growth, right? >> ya, that's exactly right, susie. it's not a recession. i think we will avoid a down turn. it's sluggish and not a lot of progress on unemployment. until unemployment comes down in a meaningful way i don't think anyone will feel comfortable how things are going. >> susie: i have talked to a loe economy. many are looking to washington to do something to revive things. whether it's a super committee or congress with a tax break, what can we expect out of washington? will they step up? >> well, good place to look. they need to st

. >> reporter: economist mark zandi. >> if they can't, their situation is going to deteriorate and they'll take us with them. >> reporter: at remains lighting, david calligeros says europe hasn't hurt his business yet. but you're still being cautious? >> yes, because we felt stung by the last go-round. >> reporter: if the lights go out on the european economy... >> we'll definitely feel it. that's the bottom line. >> reporter: there was some good economic news in the u.s. today. new claims for unemployment benefits dropped to the lowest level in seven months, but markets tumbled on worries about europe, the sword still dangling over the economy's head. >> pelley: anthony, u.s. banks were at the center of the 2008 crisis, are u.s. banks in danger of what's happening in europe? >> well, u.s. and european banks, scott, are tightly intertwined and the fear is the trouble there could infect banks here. the congressional research service estimates that u.s. bank exposure to the european debt crisis is about $640 billion. if that's accurate, scott, that's nearly 5% of total banking assets in the

host: mark zandi with moody's. you mentioned the debt ceiling debate over the summer and how it led to a s&p downgraded the u.s. credit rating. how was this a different situation? is it the expectations that were different? is it entirely and apples and oranges moment? guest: at the end of the day, the ratings agencies are looking out for the people who own our treasury debt. moody's and fitch are saying, you know, under current law, if we stick to the script and the changes, we should be ok. you know, we're going to get the $4 trillion in 10-year deficit reduction that we need to get our deficits down and get a stable debt-to-to gdp ratio. as gdp, they say we do not trust the political process. there's not a different way of expressing this, but this is my interpretation, that we do not think the political process is working and that it will break down and we will not get that $4 trillion. a better way to put it is, there is a probability that the political process will break down, and it is not 0 probability. if

let's bring in mark zandi, chief economist. mark, there's a lot of unemployed people right now in the u.s.. how is it that the possibility of losing more jobs is directly correlated to what's happening in the greek financial situation? >> yeah. unfortunately we're tethered at the hip with europe and if europe has trouble we do too as well. the most obvious and direct link is through the stock market. a large number of our big multinational corporations do a lot of business in europe and their stock price reflects what's happening there. if you go back to the start of the european debt crisis almost a year and a half ago the stock market has been up, down and all around and gone nowhere and that's largely because of the european situation. there are other links but that's the most key and immediate un. >> a lot of folks have been looking at their 401(k)s and especially so with the greek debt crisis. they've seen the numbers fluctuate. how is it that people can feel, i guess, more confidence if confidence is the right word in thei

i know you're going to speaksp with mark zandy. they decided to hold back on the u.s.dit rating in august. do we think that is at risk now? >> that's one of the questions. on the one hand, they are goingo to get the trillion dollars in deficit reduction from the triggers, but remember whenembe standard and poor downgraded thd u.s. eddebt, the markets took aa tumble it was about thet political dysfunction and thenc question of money.mone the political dysfunction is worse than ever.er >> chris, definitely a lot toly talk about on your show. hopefully we'll keep our fingere crossed. >> they can always surprise us, but it doesn't look that way. thanks, chris. >>> she is a woman of her word, mill la kunis attended a marinea corps ball last night. they pulled up in an suv, but no cameras were allows. sergeant moore asked her through a youtube video, this comes days after justin timberlake escorte a marine to the marine corpscor ball in richmond. >>> okay, gwen. it's the week. thanksgiving week! everybody is hitting the roads.e >> the pressure is on.ress >> everybody wants t

earlier i spoke with mark zandi from moody's a na li ticks about why the greek crisis impacts every singlene of us. >> we're tethered at the hip with europe and if europe has trouble we do too. the most obvious and direct link is through the stock market, a large number of our big multinational corporation do lots of business in europe and their stock price reflects what's happening there. and if you go back to the start of the european debt crisis, almost a year and a half ago the stock market as been up, down, all around and largely gone nowhere. there are other links but that's the most key and immediate one. >> how is it that people can feel, i guess, more confidence if confidence is the right word in their 401(k) while greece tries to work out its money problems? >> well, you know, i don't think you can. i mean the ups and downs in our stock market and people's 401(k)s and other pension assets is directly related to what's going on in europe almost day-to-day. you know it's not only that stock market has gone nowhere for the last year and a half or two years, the problem is the volati

we've got all of these characters coming up tomorrow, including ron paul and ralph nader, mark zandy,two hours

support bipartisan support according to the "wall street journal," but it really, according to mark zandijohn mccain top economic advisor would lower unemployment by 1%. produce 1.5 million jobs. so i think the obama administration is getting back on not just an important message but an important agenda with the american jobs act. >> laura: except the democrats don't even push his jobs bill. we have a problem when his own party did not want to put this up for a vote in the u.s. senate when we had eric cantor saying, hold on. we had eric cantor saying let's vote on this in piecemeal. we can work with you on some of this. to me it seems like the burden can't always be on the republicans. right? bill clinton worked for the republicans. he worked for gingrich. welfare reform. four balanced budgets. things aren't that different. obama can certainly find someone to work in congress. yet, he is not doing that alexis? >> laura, we have to do a better job of telling our story. obama. >> laura: what's the story? >> we have preside over the largest middle class tax cut in this nation's history. and

however, mark zandi from moody's analytical said yesterday, wall street already knew this thing was going to fail. it's baked into the cake. >> this show is perfect for that topic. today we have senator john kyle on, senator john kerry on and grover nordquist here. >> man, this is a good show. glad we showed up. >> violence in cairo leaving 20 people dead. there's more than 700 people injured. 3,000 protesters clashing with police and around the square. they're demanding the military government transfer power to the egyptian people. they set fire to tents in that square. egypt's culture minister reportedly resigning over the government's handling of the violence. police say a woman that is we want -- went on a deadly shooting rampage leaving five people dead. four of her victims, children between the ages of 9 and 19 and then eventually took her own life in her car. right now, investigators say it appears to be a domestic incident and believe all of the victims knew one another. republican presidential candidate mitt romney picking up another key endorsement in new hampshire. congressman

joining us is mark zandi. always good to have you with us. a lot of what we're reading this morning says this isn't necessarily seen as a disaster for the markets. in in ways, it had been priced into the economy. but it is a significant warning. what is the warning that it is sending out? >> we have to address our fiscal problems. if we don't, global investors are going to have a problem with this. it's going to push stock prices down. it's going to affect the ability of businesses to create jobs. to me, what we lost here was a golden opportunity to really make some progress. we're going to have month opportunities but not too many more. if we take one of those, we're going to lose our global opportunity. we really don't want that. >> when you say force change, what do you mean by that? >> like in europe, you can see in europe now investors are nervous about buying the bonds of italy, of spain, even countries like france. so interest rates are starting to raise. this is putting significant pressure on those governments to make large changes v

mark zandy and dr. alan blinder of the federal reserve completed a study last year that measured the impact of federal actions on shoring up the economy. here is a key quote from their report. we find that its effects on real gdp, jobs and inflation are huge and probably averted what could have been called depression 2.0. when all is said and done the financial and fiscal policies would have cost taxpayers a substantial sum but not nearly as much as most had feared and not nearly as much as policymakers have not acted at all. the comprehensive policy response saved the economy from another depression, we estimate they were well worth their cost. the next chart shows their estimate of the number of jobs we would have had without federal response. it shows we would have had 8.1 million fewer jobs in the second quarter of 2010 if we had not had the federal response. we see a similar picture in the unemployment rate. according to doctors and the and doctor blinder's findings we did not have the federal resp

. >> shannon: and speaking of the financial reaction, you had mark zandi on today, a respected economistpublicans and democrats in providing them relevant information. you asked him today about what can happen with the markets and with a possible credit downgrade. >> interesting because he said the markets have kind of factored in failure on the part of the super committee and he doesn't think if they announce tomorrow or wednesday we failed, particularly given the fact there's still the trillion dollars in automatic cuts, he doesn't think there's going to be a big negative. where he does think there will be is because there have been some thought that the super committee would deal with are we going to extend unemployment benefits? are we going to extend the payroll tax cut? and if you don't do that, then the economy loses a lot of stimulus at the end of the year when both of those expire and he thinks that could have a very negative impact in terms of a downgrading of the credit rating, he doesn't think that's going to happen. we'll see. s&p did not so much for financial reasons but po

two other leading economists, mark zandi and dr. alan blinder, completed a study last year that measured the impact of federal actions in shoring up the economy. here is the key quotation from their report. "we find that its effects on real gdp, jobs, and inflation are huge, and probably averted what could have been cause depression 2.0. the policies will have cost taxpayers a substantial sum. but not nearly as much as most had feared and not nearly as much as policymakers -- had they not acted it all. comprehensive policy response save the economy from another depression. they were well worth their cost ." this next chart shows their estimate of the number of jobs we would have had without the federal response. it shows that we would have had 8.1 million fewer jobs in the second quarter of 2010 if we had not had the federal response. we see a similar picture in the unemployment rate. according to dr. zandi and dr. blinder, if we had not had the federal response, the unemployment rate would have been 15% in the second quarter of 201

economist mark zandi of moody's said the economy will likely plunge back into a full-blown recession erasing economic progress we've made if we don't extend this tax cut. clearly our fragile middle class and economy can't afford the setback failure to extend and expand these tax cuts would bring. kweubz say we can't -- republicans say we can't afford to raise these taxes. if they choose to oppose this payroll tax cut, we'll know what they meant to say was we can't afford to raise taxes on the rich. in fact, more clearly, we cannot afford to raise taxes on the rich, but we're happy to raise taxes on the middle class. mr. president, would you announce the business of the day. the presiding officer: under the previous order -- under the previous order, the senate will resume consideration of s. 1867, which the clerk will report. the clerk: calendar number 230, s. 1867, a bill to authorize appropriations for fiscal year 2012 for military activities of the department of defense for military construction and so forth and for other purposes. mr. reid: i send an amendment to the desk, mr. pr

mark zandi, the housing market poses a serious threat to the economic expansion. one of the best odds of ending the housing crash quickly and definitively would have substantial write-downs. now, when congress passed the emergency economic stabilization act in 2008, we directed fhfa, freddie and franny to im-- fannie to implement a plan. it does talk about taking, having the mortgage services, encouraging services to take advantage of programs to minimize foreclosures. there's nothing in the law that i see, that anybody else advises that prevents you from approving a program that reduces principal in the tact payers' interest. the average return this year is 55% of unpaid principal balance, so you're going to lose 45% of for foreclosed property. why not reduce the principal and keep the borrower in his or her home? >> we have been through the analytics of the underwater borrowishes at fannie and freddie and looked at the foreclosure alternative programs that are available, mr. tierney, and we have concluded that the use of the principal within the context of a loa

according to the economist mark zandi, every dollar invested in these types of projects will generate approximately $1.59 in economic activity. there's a significant multiplier effect here, and it's part, i think of importantly getting us moving again, building up self-sustaining momentum. again, these projects will employ private companies that will hire individuals in all of our home states to begin the work that must be done to improve our infrastructure, to provide the kind of vital transportation links that are critical to any economy. and it's also very important to know that this proposal is fully paid for. and you have both business and labor supporting these investments in the bill. and i would hope we could all join together in a sign not of just common unity but common sense, and adopt this provision. build infrastructure. it's paid for. it puts people to work. that's what the american public is asking us to do, and we should do it. i want to comment briefly on the republican alternative proposal. it fails to provide the investments that deal with these infrastructure and j

economist mark zandi of moody's said the economy will likely aunge back into recession erasing economic progress we've made if we don't extend this tax cut. clearly our fragile middle class and economy can't afford the setback failure to extend and expand these tax cuts would bring. kweubz say we can't -- republicans say we can't afford to raise these taxes. if they choose to oppose this payroll tax cut, we'll know what they meant to say was we can't afford to raise taxes on the rich. in fact, more clearly, we cannot afford to raise taxes on the rich, but we're happyre we in a quorum call? the presiding officer: we are not. mr. mcconnell: well, first, i would like to welcome everybody back. i hope everyone had a nice thanksgiving. shortly before we all left last week, we got some disappointing news when the yoipt committee on deficit reduction announced it was -- joint committee on deficit reduction announced it was unable to reach the kind of bipartisan agreement that much of us -- many of us had been hoping for. it was a major disappointment to those of us who hoped that the joint com

as economist mark zandi has quoted, i don't think it's meaningful in terms of jobs. i think it's more trying to clean up something that needs cleaning up, end of quote. the veteran provision is a real jobs bill. they are a useful start in helping those who have loyally served our nation find work. and i would hope that all of us support them, including the tax credits to encourage businesses to hire veterans. most on our side support these provisions and they were included in the president's jobs proposal. but no one should consider these modest steps as a substitute for action on the president's comprehensive jobs plan which republicans have so far blocked. the president's job plan includes a payroll tax cut that would save the average family $ 1,500 a year. payroll tax cuts for hiring. and incentives to invest. it includes an infrastructure bank and $75 billion to build roads and schools. that's a job agenda that could help many of the 14 million americans who are still looking for work. picking out two of the smaller pieces of that agenda and saying you've acted o

mark zandi who was an adviser to the mccain presidential campaign, and dr. alan blinder, former vice chairman of the federal reserve, completed a study last year that measured the impact of federal actions on shoring up the economy. here is a key quote from their report. we find that its effects on real gdp, jobs and inflation are huge and probably averted what could have been called depression 2.0. when all is said and done, the financial and fiscal policies will have cost taxpayers a substantial sum, but not nearly as much as most had feared and not nearly as much as if policymakers had not acted at all. if comprehensive policy responses saved the economy from another depression as we estimate, they were well worth their cost. this next chart shows dr. zandi and dr. blinderrers estimate of the number of jobs we would have had without the federal response. it shows that we would have had 8.1 million fewer jobs in the second quarter of 2010 if we had not had the federal response. we see a similar picture in the unemployment rate. according to dr. zandi and d

mark zandi, who was senator mccain's economic advisor in his presidential campaign, points out that the president's proposal would increase our gross domestic product by 2% and create 1.9 million additional jobs. and the president's proposal is completely paid for, so it adds nothing to the deficit. now, i must tell you, if we're going to be able to balance our budget, if we're tpw-g to be -- going to be able to get our budget into better shape, we have to have more jobs. less people using governmental services, more people paying revenues or taxes into our system. the more people that are working, the better our budgets will come into balance. now, i know some here are saying, look, there's a better way of doing it. come forward with a better way of doing it. i would challenge my, particularly my republican colleagues, if you have a better way, come forward with a proposal that creates at least 1.9 million jobs and does it without adding to the budget deficit. that's the proposal that we had before us. i'm asking the joint committee to make sure that they provide in their recommendatio

want to -- my colleagues to understand that if we were to extend the payroll tax, according to mark zandi, a republican economist, advised john mccain in his presidential campaign, that would create 750,000 jobs. and he also says that we are likely to go into recession if a payroll tax expires, if my republican friends don't allow us to have a vote up or down on it, i'm going to ask people to vote no on a previous question so we can have an up or down vote and people have an opportunity to make their views known. the other thing is we heard this talk about the cost of regulation. again some of the numbers that have been touted here i question. very seriously. o.m.b.'s calculations demonstrate that regulation has a positive net effect on the economy and not by a little. in 2008 the bush administration's o.m.b. estimated that regulatory costs for major rules were between $46 billion and $54 billion. and the benefits of those regulations was between $122 billion and $656 billion. so it goes back to the point i was making earlier and that is, what we should be doing on this floor today is deb