The State of the Economy: Business Cycle Enters Boom Phase

Just how big is this economic boom? Moody’s Analytics Chief Economist Mark Zandi puts it this way in his article for the November RMA Journal: “The only other times unemployment was as low were during World War II and the Korean War, when large numbers of American soldiers were overseas fighting.”

The bad news is, the high point of an economic expansion means the expansion is getting closer to its end point. 

In “The State of the Economy: Business Cycle Enters Boom Phase”, https://rmajournal.org/rmajournal/november_2018/MobilePagedReplica.action?pm=2&folio=21#pg23, Zandi analyzes current key economic metrics and points out the data points that should—and shouldn’t—be worrying to lenders.

“While a financial crisis on the scale of the last one is now much less likely given the re­forms put in place, there still can be financial slipups serious enough to undermine even an economy as strong as today’s,” he writes. “Indeed, it is in the best of times, like now, when errors are made that become fodder for the next recession.”


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