--- title: "Meaning & Key Takeaway of: It is hard to be enthusiastic about the…" description: "\"It is hard to be enthusiastic about the economy's prospects when house prices are falling: Households spend less, small business owners can't use homes..." image: "https://sms4smile.com/quotes/i/a38/mark-zandi-12567_business_it-is-hard-to-be-enthusiastic-about-the_2354584.png" --- # It is hard to be enthusiastic about the economy's… ![“It is hard to be enthusiastic about the economy's prospects when house prices are falling: Households spend less, small business owners can't use homes as collateral for loans and local governments are forced to cut jobs and programs as property-tax revenue disappears.” quote by Mark Zandi](https://sms4smile.com/quotes/i/a38/mark-zandi-12567_business_it-is-hard-to-be-enthusiastic-about-the_2354584.png) [Download](https://sms4smile.com/quotes/i/a38/mark-zandi-12567_business_it-is-hard-to-be-enthusiastic-about-the_2354584.png) [Open image](https://sms4smile.com/quotes/i/a38/mark-zandi-12567_business_it-is-hard-to-be-enthusiastic-about-the_2354584.png) > “It is hard to be enthusiastic about the economy's prospects when house prices are falling: Households spend less, small business owners can't use homes as collateral for loans and local governments are forced to cut jobs and programs as property-tax revenue disappears.” [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. A declining housing market dampens consumer spending, limits business financing, and forces local governments to cut services, creating a negative feedback loop for the economy. **In simple terms:** Falling house prices hurt spending and jobs. Key Takeaway Address housing market stability. Themes economy finance public policy Mood concerned analytical Type economic policy When to use this quote - government budgeting - small business financing - consumer confidence - real estate investment - policy making Key Concepts macroeconomics feedback loops fiscal pressure Questions to Reflect On - What policies could break the cycle? - How can communities mitigate revenue loss? A Different Perspective Improving housing prices alone may not reverse broader economic malaise. ★ ★ ★ ★ ★ No ratings yet [Business](https://sms4smile.com/quotes/about/business/) [Business owners](https://sms4smile.com/quotes/about/business-owners/) [Collateral](https://sms4smile.com/quotes/about/collateral/) [Customer](https://sms4smile.com/quotes/about/customer/) [Cutting](https://sms4smile.com/quotes/about/cutting/) [Disappear](https://sms4smile.com/quotes/about/disappear/) [Economics](https://sms4smile.com/quotes/about/economics/) [Economy](https://sms4smile.com/quotes/about/economy/) [Economy Prospects](https://sms4smile.com/quotes/about/economy-prospects-5744371/) [Enthusiastic](https://sms4smile.com/quotes/about/enthusiastic/) [Enthusiastic Economy](https://sms4smile.com/quotes/about/enthusiastic-economy-5744373/) [Fall](https://sms4smile.com/quotes/about/fall/) [Falling Households](https://sms4smile.com/quotes/about/falling-households-5744372/) [Family](https://sms4smile.com/quotes/about/family/) [Government](https://sms4smile.com/quotes/about/government/) [Hard](https://sms4smile.com/quotes/about/hard/) [Home](https://sms4smile.com/quotes/about/home/) [House](https://sms4smile.com/quotes/about/house/) [House prices](https://sms4smile.com/quotes/about/house-prices/) [Household](https://sms4smile.com/quotes/about/household/) [Jobs](https://sms4smile.com/quotes/about/jobs/) [Loan](https://sms4smile.com/quotes/about/loan/) [Local government](https://sms4smile.com/quotes/about/local-government/) [Owners](https://sms4smile.com/quotes/about/owners/) [Prices Falling](https://sms4smile.com/quotes/about/prices-falling-4016899/) [Program](https://sms4smile.com/quotes/about/program/) [Property](https://sms4smile.com/quotes/about/property/) [Property taxes](https://sms4smile.com/quotes/about/property-taxes/) [Prospects](https://sms4smile.com/quotes/about/prospects/) [Revenue](https://sms4smile.com/quotes/about/revenue/) [Small business](https://sms4smile.com/quotes/about/small-business/) [Small Business Owner](https://sms4smile.com/quotes/about/small-business-owner/) [Small business owners](https://sms4smile.com/quotes/about/small-business-owners/) [Taxes](https://sms4smile.com/quotes/about/taxes/) [Use](https://sms4smile.com/quotes/about/use/) ## Related quotes > [A home is a home, and excess supply leads to prices falling.](https://sms4smile.com/quotes/nouriel-roubini/a-home-is-a-home-and-excess-supply-leads-to-prices-falling/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [The key to house prices is the share of foreclosure or short sales in the total housing market. When that share rises, house prices…](https://sms4smile.com/quotes/mark-zandi/the-key-to-house-prices-is-the-share-of-foreclosure-or-short-sales-in/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [It is time to move on. House prices won't rise and the economy won't fully engage until more distressed properties are resolved and put…](https://sms4smile.com/quotes/mark-zandi/it-is-time-to-move-on-house-prices-won-t-rise-and-the-economy-won-t/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [Housing was ground zero for the Great Recession. Between early 2006 and Obama's inauguration in 2009, average house prices fell by a third across…](https://sms4smile.com/quotes/mark-zandi/housing-was-ground-zero-for-the-great-recession-between-early-2006/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [Buying a home wouldn't make much sense if house prices were likely to decline further; no one wants to catch a falling knife.](https://sms4smile.com/quotes/mark-zandi/buying-a-home-wouldn-t-make-much-sense-if-house-prices-were-likely-to/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national…](https://sms4smile.com/quotes/ben-bernanke/house-prices-have-risen-by-nearly-25-percent-over-the-past-two-years/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [With housing it's something even more dramatic than that, because most people aspire to own their own home.If you really think that houses prices…](https://sms4smile.com/quotes/warren-buffett/with-housing-it-s-something-even-more-dramatic-than-that-because-most/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Investors are trying to work out some risk premiere that have some correspondence with actual risks. But they don't, they're not, they can't go…](https://sms4smile.com/quotes/robert-skidelsky-baron-skidelsky/investors-are-trying-to-work-out-some-risk-premiere-that-have-some/) [Robert Skidelsky, Baron Skidelsky](https://sms4smile.com/quotes/author/robert-skidelsky-baron-skidelsky/) > [It's impossible to know precisely what constitutes the right house price but I do know that house prices doubling or even tripling over a…](https://sms4smile.com/quotes/grant-shapps/it-s-impossible-to-know-precisely-what-constitutes-the-right-house/) [Grant Shapps](https://sms4smile.com/quotes/author/grant-shapps/) > [If you really think that houses prices are going to go up next year and the year after, you feel if I don't buy…](https://sms4smile.com/quotes/howard-warren-buffett/if-you-really-think-that-houses-prices-are-going-to-go-up-next-year/) [Howard Warren Buffett](https://sms4smile.com/quotes/author/howard-warren-buffett/) > [The worst time was in 1985 when house prices crashed and interest rates went up to 14 percent. I was not winning on the…](https://sms4smile.com/quotes/john-virgo/the-worst-time-was-in-1985-when-house-prices-crashed-and-interest/) [John Virgo](https://sms4smile.com/quotes/author/john-virgo/) > [But 300 million Americans, their lending institutions, their government, their media, all believed that house prices were going to go up consistently. And that…](https://sms4smile.com/quotes/warren-buffett/but-300-million-americans-their-lending-institutions-their-government/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [It is almost impossible to open a newspaper without reading something about the London housing market. House prices are rising at such a rate…](https://sms4smile.com/quotes/david-lammy/it-is-almost-impossible-to-open-a-newspaper-without-reading-something/) [David Lammy](https://sms4smile.com/quotes/author/david-lammy/) > [The two questions that anyone ever asks me are: 'Are house prices going to go down?' and 'Is it a good time to fix…](https://sms4smile.com/quotes/evan-davis/the-two-questions-that-anyone-ever-asks-me-are-are-house-prices-going/) [Evan Davis](https://sms4smile.com/quotes/author/evan-davis/) > [House prices just soared beyond - beyond reason in many places and they got financed in silly ways, and people lied about loans, all…](https://sms4smile.com/quotes/warren-buffett/house-prices-just-soared-beyond-beyond-reason-in-many-places-and-they/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) ## More by Mark Zandi > [Our biggest challenge is to eliminate the popular perception that economists don't have anything useful to say.](https://sms4smile.com/quotes/mark-zandi/our-biggest-challenge-is-to-eliminate-the-popular-perception-that/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [In a normal time, I don't think economic policy makes a large difference one way or another. But in times of crisis it makes…](https://sms4smile.com/quotes/mark-zandi/in-a-normal-time-i-don-t-think-economic-policy-makes-a-large/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [It is easy to be pessimistic. These are extraordinarily difficult times, and the collective psyche is teetering. But we are closer to righting the…](https://sms4smile.com/quotes/mark-zandi/it-is-easy-to-be-pessimistic-these-are-extraordinarily-difficult/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [No one should expect the value of their house to appreciate quickly - counting on your home to be a significant part of your…](https://sms4smile.com/quotes/mark-zandi/no-one-should-expect-the-value-of-their-house-to-appreciate-quickly/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [We're getting job creation in healthcare and educational services. We've been getting that all along. It's demographically driven, it's funded by the government, and…](https://sms4smile.com/quotes/mark-zandi/we-re-getting-job-creation-in-healthcare-and-educational-services-we/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [There are different flavors of recession. You can get into some pretty dark scenarios pretty quickly.](https://sms4smile.com/quotes/mark-zandi/there-are-different-flavors-of-recession-you-can-get-into-some-pretty/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [Buying a home wouldn't make much sense if house prices were likely to decline further; no one wants to catch a falling knife.](https://sms4smile.com/quotes/mark-zandi/buying-a-home-wouldn-t-make-much-sense-if-house-prices-were-likely-to/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [I'm a registered Democrat.](https://sms4smile.com/quotes/mark-zandi/i-m-a-registered-democrat/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [Now, I do think when we move into 2012 and '13 when, presumably, the economy is on firmer ground, I would allow the tax…](https://sms4smile.com/quotes/mark-zandi/now-i-do-think-when-we-move-into-2012-and-13-when-presumably-the/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [At the center of every recession is a serious imbalance in the economy and mirrored in the financial system. Think subprime mortgage and the…](https://sms4smile.com/quotes/mark-zandi/at-the-center-of-every-recession-is-a-serious-imbalance-in-the/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [There is no better way to quickly buoy hard-pressed homeowners than helping them take advantage of the currently record low fixed mortgage rates and…](https://sms4smile.com/quotes/mark-zandi/there-is-no-better-way-to-quickly-buoy-hard-pressed-homeowners-than/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [The average credit score of today's FHA borrowers is higher than the average American household with a score. As it becomes more costly and…](https://sms4smile.com/quotes/mark-zandi/the-average-credit-score-of-today-s-fha-borrowers-is-higher-than-the/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [An overheating economy, characterized by accelerating inflation and rising interest rates, is another precondition for recession. This doesn't describe today's economy.](https://sms4smile.com/quotes/mark-zandi/an-overheating-economy-characterized-by-accelerating-inflation-and/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [Too-easy credit and millions of bad loans made during the U.S. housing bubble paved the way for the financial calamity and Great Recession that…](https://sms4smile.com/quotes/mark-zandi/too-easy-credit-and-millions-of-bad-loans-made-during-the-u-s-housing/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [Distressed properties are often vacant and in disrepair, and thus sold at significant discounts. As the share of distressed sales grows, home prices fall.](https://sms4smile.com/quotes/mark-zandi/distressed-properties-are-often-vacant-and-in-disrepair-and-thus-sold/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) [Explore all 54 Mark Zandi quotes ](https://sms4smile.com/quotes/author/mark-zandi/) ## More Business quotes > [Companies with cultures that celebrate diverse opinions and encourage the exchange of ideas have an advantage when solving difficult problems. A company that doesn't…](https://sms4smile.com/quotes/doug-mcmillon/companies-with-cultures-that-celebrate-diverse-opinions-and-encourage/) [Doug McMillon](https://sms4smile.com/quotes/author/doug-mcmillon/) > [You can laugh at me, but I understand show business.](https://sms4smile.com/quotes/ksenia-sobchak/you-can-laugh-at-me-but-i-understand-show-business/) [Ksenia Sobchak](https://sms4smile.com/quotes/author/ksenia-sobchak/) > [“Start a business, not a startup”](https://sms4smile.com/quotes/anonymous/start-a-business-not-a-startup/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [“Take some books and read; that’s an immense help; and books are always good company if you have the right sort.”](https://sms4smile.com/quotes/louisa-may-alcott/take-some-books-and-read-that-s-an-immense-help-and-books-are-always/) [Louisa May Alcott](https://sms4smile.com/quotes/author/louisa-may-alcott/) > [I'm a business first and foremost so whatever my business is, it's separate from my personal. It's like whatever I do business wise, it's…](https://sms4smile.com/quotes/snoop-dogg/i-m-a-business-first-and-foremost-so-whatever-my-business-is-it-s/) [Snoop Dogg](https://sms4smile.com/quotes/author/snoop-dogg/) > [Many early-stage entrepreneurs make one simple mistake: Describing this 'big picture' in vague concepts and words.](https://sms4smile.com/quotes/sunil-nagaraj/many-early-stage-entrepreneurs-make-one-simple-mistake-describing/) [Sunil Nagaraj](https://sms4smile.com/quotes/author/sunil-nagaraj/) > [Nobody has a crystal ball, and part of evolving a business plan is to say, 'I might have said we're going left, but I…](https://sms4smile.com/quotes/ryan-kavanaugh/nobody-has-a-crystal-ball-and-part-of-evolving-a-business-plan-is-to/) [Ryan Kavanaugh](https://sms4smile.com/quotes/author/ryan-kavanaugh/) > [I think a business guy is different from an artist. They walk different paths. Artists create the best outputs when they're having fun. And…](https://sms4smile.com/quotes/g-dragon/i-think-a-business-guy-is-different-from-an-artist-they-walk/) [G-Dragon](https://sms4smile.com/quotes/author/g-dragon/) > [ “\[S\]ometimes, when you are a food person, the possible irrelevance of what you are doing doesn’t cross your mind until it’s too late. (Once,… ](https://sms4smile.com/quotes/nora-ephron/s-ometimes-when-you-are-a-food-person-the-possible-irrelevance-of/) [Nora Ephron](https://sms4smile.com/quotes/author/nora-ephron/) > [If you have a different mindset, you will have a different outcome: if you make different choices from your peers, your life will then…](https://sms4smile.com/quotes/jack-ma/if-you-have-a-different-mindset-you-will-have-a-different-outcome-if/) [Jack Ma](https://sms4smile.com/quotes/author/jack-ma/) > [“Some say the Earth is angry Because he wants no company; I say the Earth is angry Because he lives alone.”](https://sms4smile.com/quotes/n-k-jemisin/some-say-the-earth-is-angry-because-he-wants-no-company-i-say-the/) [N.K. Jemisin](https://sms4smile.com/quotes/author/n-k-jemisin/) > [ If the State does not acquire supremacy over \[vast private\] enterprises, it becomes their puppet, and they become the real State. ](https://sms4smile.com/quotes/bertrand-russell/if-the-state-does-not-acquire-supremacy-over-vast-private-enterprises/) [Bertrand Russell](https://sms4smile.com/quotes/author/bertrand-russell/) > [It's not just that families can't buy a home or start a business without some savings tucked away.](https://sms4smile.com/quotes/jim-cooper/it-s-not-just-that-families-can-t-buy-a-home-or-start-a-business/) [Jim Cooper](https://sms4smile.com/quotes/author/jim-cooper/) > [I'm not into business at all.](https://sms4smile.com/quotes/freddie-mercury/i-m-not-into-business-at-all/) [Freddie Mercury](https://sms4smile.com/quotes/author/freddie-mercury/) > [I've long believed one of the mainsprings of our own liberty has been the widespread ownership of property among our people and the expectation…](https://sms4smile.com/quotes/ronald-reagan/i-ve-long-believed-one-of-the-mainsprings-of-our-own-liberty-has-been/) [Ronald Reagan](https://sms4smile.com/quotes/author/ronald-reagan/) [Browse all 39,016 Business quotes ](https://sms4smile.com/quotes/about/business/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "It is hard to be enthusiastic about the economy's prospects when house prices are falling: Households spend less, small business owners can't use homes as collateral for loans and local governments are forced to cut jobs and programs as property-tax revenue disappears.", "creator": { "@type": "Person", "name": "Mark Zandi" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/mark-zandi/it-is-hard-to-be-enthusiastic-about-the-economy-s-prospects-when/", "about": { "@type": "Thing", "name": "Business" }, "@id": "https://sms4smile.com/quotes/mark-zandi/it-is-hard-to-be-enthusiastic-about-the-economy-s-prospects-when/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/a38/mark-zandi-12567_business_it-is-hard-to-be-enthusiastic-about-the_2354584.png", "contentUrl": "https://sms4smile.com/quotes/i/a38/mark-zandi-12567_business_it-is-hard-to-be-enthusiastic-about-the_2354584.png", "url": "https://sms4smile.com/quotes/i/a38/mark-zandi-12567_business_it-is-hard-to-be-enthusiastic-about-the_2354584.png", "width": 1080, "height": 1080, "caption": "“It is hard to be enthusiastic about the economy's prospects when house prices are falling: Households spend…” — Mark Zandi", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Mark Zandi", "item": "https://sms4smile.com/quotes/author/mark-zandi/" }, { "@type": "ListItem", "position": 4, "name": "It is hard to be enthusiastic...", "item": "https://sms4smile.com/quotes/mark-zandi/it-is-hard-to-be-enthusiastic-about-the-economy-s-prospects-when/" } ], "@id": "https://sms4smile.com/quotes/mark-zandi/it-is-hard-to-be-enthusiastic-about-the-economy-s-prospects-when/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```