Zandi Mongers Panic: Warns Deeper Recession Over Potential Spread of Swine Flu
Some financial indicators took somewhat of a shock over swine flu fears on the first day after the swine flu fears were realized.
‚ÄúBut on Wall Street today and overseas, travel-related stocks took a beating over flu fears,‚ÄĚ NBC correspondent Tom Costello said on the April 27 broadcast of "NBC Nightly News," reporting that U.S. airline stocks were hit hard, down a little over 8 percent on the news.
‚ÄúIf this lasts two months and spreads across the globe, then the global downturn will intensify,‚ÄĚ Zandi said. ‚ÄúMillions of more jobs will be lost, unemployment will rise, and this recession will last well into 2010.‚ÄĚ
We don‚Äôt know whether Zandi offered more optimistic predictions for the scenario in which the swine flu pandemic turns out to be nothing more than a scare. If so, they were left on the cutting room floor.
However some think this flu scare is overhyped. Fox News Channel commentator Brit Hume pointed out deaths from flu illness of more common strains happen on a much larger scale on an annual basis.
‚ÄúConsider this ‚Äď tens of thousands of people, Trace, die every year from ordinary seasonal flu,‚ÄĚ Hume said on FNC‚Äôs ‚ÄúThe Live Desk with Trace Gallagher‚ÄĚ April 27. ‚ÄúHere we have a case of a few dozen ‚Äď only a couple of which require hospitalization and no deaths. What this is, is much ado about ‚Äď I‚Äôm afraid to say this ‚Äď not very much.‚ÄĚ
He explained this story has fed on itself, making it bigger than it should be ‚Äď all due to a slow news cycle.
‚ÄúI realize it‚Äôs been a slow weekend in terms of news,‚ÄĚ Hume said. ‚ÄúThe president went out and played golf on Sunday. The White House reporters don‚Äôt have much to work with today, so they‚Äôre trying to get a piece of this swine flu story, which you know, all the cable news channels are agog about, bug-eyed about. But so far, it doesn‚Äôt amount to much in the