An overheating economy, characterized by accelerating inflation and rising interest rates, is another precondition for recession. This doesn't describe today's economy.
Mark ZandiThere is plenty of blame to go around for the U.S. housing bubble, but not much of it belongs to Fannie Mae and Freddie Mac. The two giant housing-finance institutions made many mistakes over the decades, some of them real whoppers, but causing house prices to soar and then crater during the past decade weren't among them.
Mark ZandiBuying a home wouldn't make much sense if house prices were likely to decline further; no one wants to catch a falling knife.
Mark ZandiThe principal linkages between Japan and the U.S. global economies are trade, financial markets, and commodity markets.
Mark Zandi