zandi, thank you for your work. i saw the case-shiller housing index predict another bad year for housing. are you in agreement with that? >> yes, i think there will be more house price decline spurred on case-shiller, probably another 5% nationally -- morehouse de -- there will be more house price declines. on case-shiller, probably another 5%. >> i want to come back to that question, because as we look on the horizon here and we look at potential threats to the economic recovery, housing, state and local, european debt situation, middle east -- i would put those four at the top of the list. this committee -- we cannot do much about the middle east. state and local -- really, i think ray and mr. edwards have described it really well. states are taking on their own challenges. the european debt situation we cannot do a thing about in this committee. the one thing we might be able to make a difference in is housing. i want to come back to that. but that will go to senator whitehouse, and then it will be senator begic

mark zandi, chief economist of moody's analytics, joins us with details of his outlook for this year. hi, mark. >> hi, susie. >> susie: so that is a pretty optimistic forecast, especially considering that we've seen home prices are still falling. so tell us why you see a turn around in the housing market. >> well, i do think that we will see more house price kleins. we stwil have a up could el million loans in the foreclosure process, another couple million that are delinquent that will go through foreclosure to a distressed sale so we will see more price declines this year. but i think with a better job market, continued low-interest rate, ample mortgage cede nature home sales, housing construction and even yes, house prices by this time next year will stabilize and continue to improve. this five, six year long housing market crash is finally, i think, coming to an end. >> susie: so you are saying you are seeing a pickup in construction. but isn't there a whole glut of houses that are out there. i mean who is going to be buying to see this pickup? >> well, actually, inventories of ne

so, we asked mark zandi, one of the top economic forecasters, to tell us what the two different numbers>> january was a really tough weather month. a lot of jobs didn't get created that normally would. i think we're on the cusp of some better job numbers. businesses are profitable. their balance sheets are strong. the missing ingredient has been a lack of confidence but i feel like the light switch is going on and we are going to see the better job numbers. >> and zandi is predicting the economy will add 200,000 jobs a month by the summer. >>> president reagan would have turned 100 this sunday and his library is marking the date with remarks by mrs. reagan, who once told me about the passage of each day since he died. has time made anything easier? >> i keep thinking of all those people who said, time, you know, it' ll be much better in time. well, not for me. if anything, it's -- it's gotten worse. >> reporter: worse? >> i miss him more. i'm remembering more little things that we did together. it's harder. >> a tribute to president reagan will be shown as a video at the super bowl. >>>

zandi? >> yeah, i don't think that's a good idea. i think the bankruptcy -- i think the states have all the tools they need and that this would be an error. >> i appreciate that. i just want to put that out there because i think we create a problem by going down the path of discussion when renault governors are not asking for it. no one is asking for it really. and it's a very bad thing. let me go into to other areas but for someone to give a thought. i, like senator sessions, and a giveaway i was elected a mayor of city that are locked into a $259 budget with a $33 million hole in it. we had to resolve it. we had a three-pronged attack. one with spending, one was revenue, one is also investment, water, sewer, roads, so forth. and i have turned down when i was mayor, i turned down the federal resources when offered because we didn't have the money. so you can do it. and also sustainability of those resources. and i guess i want to, senator sessions brought up a good point and you're right, there's this addiction. it is up to the gove

m, ud zandy, the former economic advisor to the mccain campaign said that these cuds cuts will destroy 700,000 jobs and stall our economic recovery which would lesson future revenues and further exacerbate the debt problem. and a goldman sachs economist warned the republican plan could reduce our nation's economic growth by 1.5% to 2% in the second and third quarters of this year. maybe i should amend my previous statement, the cuts in the republicans' c.r. are shortsighted, counterproductive, and may even not cut the deficit. we need a smarter approach. we need an approach of shared sacrifice, not sacrifice by the most vulnerable. we do need to cut the deficit. but there are different ways to cut the deficit. and i believe the republicans have chosen the wrong way. democrats offer a better approach. we cut the deficit by at least $61 billion in such a manner that helps, doesn't hurt, struggling americans. our economy or our shared future. first, as i mentioned before, we need to get rid of once and for all the tax cuts for the richest 2% of americans. it is too late to save the $39 bi

zandi's estimate to the jobs that we would have had without the federal response. it shows we would have 8.1 million fewer jobs in the second quarter of 2010 if we had not had the federal response specifically the t.a.r.p. and stimulus. a similar story can be told by studying the unemployment rate. the unemployment rate averaged 7.9% in the second quarter. according to dr. blinder and dr. zandi if we had not had the federal response, the unemployment would have been 15% in the second quarter and would have continued rising to 16% in the fourth quarter of 2010. there's no question that the unemployment rate has remained stubbornly high. just a little over a year ago three years ago, it stood at 5%. it nearly doubled within a year and has fluctuated in the 9% plus ever since. last week the nonpartisan congressional budget office issued it's budget and economic outlook projecting the unemployment rate will fall only slightly to 9.2% by the fourth quarter of that year and fall farther to 8.2% by the fourth quarter of 2012. and the economy is growing at a much slower pa

zandi's estimate of the number of jobs we would have had without the federal response. it shows we would have 8.1 million fewer jobs in the second quarter of 2010 if we had not had the federal response, specifically tarp and at the stimulus. is similar story can be told by studying the unemployment rate. the unemployment rate averaged 9.7% in the second quarter of last year. according to dr. blinder and dr. zandi, if we had not had the federal response, the on implement rate would have been 15% in the second quarter and would continue rising to there's no question that the unemployment rate has remained stubbornly high. a little over three years ago, it stood at 5%. it nearly doubled in a year's time and has fluctuated in 9%- plus range ever since. last week, the congressional budget office issued its budget and economic outlook, projecting the unemployment rate would fall only slightly to 9.2% by the fourth quarter of this year, and fall farther to 8.2% by the fourth quarter of 2012. the economy is growing at a much slower pace when compared to past recoveries. when me

mark zandy and his book "financial shock." i see, barney, you had a quote in support of some of his conclusions, i had a chance to have dinner with him and talk to him about this particular factor and how in my view,nd i think the view of many economists, the fact thator four yes in a row, you had interest rates which were below zero, and every time that's happened -- here's what the economists said at the time. they said, you're going to have asset bubbles in real estate, and because the fed has done this in the united states, other central banks are going to follow. i want it understood that when you eliminate or erase market discipline as clearly we did with government intervention into the market, with the presre to get those 20% down payments down to zero, congress did that. all of that helps create a bubble, and underlying that is this massive infusion of credit. and he goes through the argument, the extraordinarily easily money policies pursued by the globe's central banks, help pump up the u.s. credit and housing marke

the economist mark zandi said aviation is the glue that keeps the global economy together. we know that in illinois. we know it because of that great airport called o'hare which we're currently in the process of modernizing. this bill will boost our economy now to keep the united states competitive in the global marketplace. the senate commerce committee chaired by senator rockefeller with ranking member senator inhofe has held dozens of hearings over the past few years on aviation. each was different, all of them focused on safety. last year we passed into law many safety provisions the committee recommended, but we need to do more. this bill will improve safety by preventing one-way incursions. improving runway safety according to the national transportation safety board is the highest priority. there were 988 runway incursions last year. this year there have already been 66. this bill will require the f.a.a. to review all commercial service airports in the u.s. and initiate action to improve lighting, signage and runway and taxi way markings. another key component of thi