Economist Zandi Draws Crowd for Louisville Seminar on Economic Outlook

How can you tell a room full of state economists, business executives and venture capitalists that the economy is slowing but still have them leave with a smile?

If you’re Mark Zandi, chief economist and co-founder of Moody’s Economy.com, it comes naturally.

On Nov. 15, the Louisville Branch of the Federal Reserve Bank of Louis and the University of Louisville College of Business and Department of Economics sponsored “Economic Outlook and Your Business Plan,” featuring Zandi as the keynote speaker. St. Louis Fed economist Howard Wall, University of Louisville economist Paul Coomes and Steve Wilhite, president and CEO of Summit Energy Services, also spoke at the event.

With characteristic humor and bluntness, Zandi delivered the message that that “the economy is growing, but the rate of growth is slowing,” citing the continued decline of manufacturing jobs and the downturn in the housing market.  However, he also pointed out that Louisville’s housing market was never as inflated as those in other parts of the country; as a result, it will largely escape the downturn.  

Wall delivered the Fed’s view of the nation’s economy and insights on regional economic performance, and Coomes discussed regional economic prospects in the context of the national and international outlook. In addition, Wilhite offered his perspective on economic changes and energy management across the globe.

All of the speakers enabled event participants to better understand how changing economic conditions will affect their business strategies for 2008.

Zandi summed up the growing concerns about the economy, saying, “It’s going to get a lot worse before it gets better, because of the subprime financial shock, which is still washing over global financial markets….This is a true credit crunch.”  He predicted that as long as businesses “hang tough,” the nation will not go into a recession, however, adding that the global economy is doing very well as the weakened dollar spurs exports.