Posted on 10/05/2010 8:42:51 AM PDT by WebFocus
Right now, Goldman Sachs' Jan Hatzius is speaking on a panel and just told the audience there are only two economic scenarios for the U.S. right now: bad and very bad.
Those scenarios are summed up as followed (via Jim Pethokoukis):
Bad: 1-2% GDP growth and an increase to 10% unemployment
Very Bad: Double-dip recession, based on Bush tax cut expiring and declining home prices
Goldman Sachs put together as presentation explaining their new bearish view on the economy, and it doesn't make for easy reading. But if you want an understanding of the the terrible scenarios they've envisioned, check it out here.
(Excerpt) Read more at businessinsider.com ...
Unemployment is already at or above 10% depending on which stat you look at, and GDP growth is already abysmal.
I predict that the Bush tax cuts will be extended, so scenario two is less likely, IMO.
Henry Blodget, a Wall Street analyst whom Mr. Spitzer got banned for life from the securities industry. (To settle with regulators, Mr. Blodget also paid $4 million in penalties.) Now, like his nemesis, Mr. Blodget has recast himself as a journalist — he is the editor in chief of a gossipy Web site, Business Insider.
They congratulated each other on their comebacks.
Still, their best-case scenario is that it will get worse.
Goldman-Sachs should change its name to Goldman-$#%*$.
First they spawn a collection of far left wing freaks like Geithner, Corzine and Eisenberg to help destroy America and then they have the NERVE to put their two cents in foretelling gloom and doom.
The ONLY bad scenario is that the Dems DON’T loose Congress in 2010 and the Obamanation they have been sucking up to gets re-elected in 2012.
RE: Henry Blodget
This piece of news was reported by Gregory White, not Henry Blodget.
Why would anyone believe anything Goldman Sachs has to say? They are pure self-interest.
Private firms need to start to collect their own data in some areas and plug them into growth formulas etc. Government data is crap now on inflation with “substitution” (oh, beef prices went up but there isn’t inflation because people will buy more chicken . . .) and taking out whole areas from inflation calculations (this swings too much, so we’ll ignore the data completely or inflation will swing up and down).
As long as the inmates run the asylum of Washington D.C., there’s no hope for an economic recovery. Those fools are convinced that following a socialist economic agenda is going to improve things and keep them in power; they’re delusional.
These guys are trolling for QE II. They need another sugar daddy fix from the FED to get their billion dollar bonuses up for X-Mas. GS should have been shut down and their executives investigated and sent to jail, but they own our government at the highest levels so nothing happens.
They miss the most likely scenario: High Inflation and flight from the dollar due to monetizing of debt.
Would that be "Bush's fault"?
But seriously, it's interesting that even Goldman Sachs is now favoring Bush's tax policy. After having been huge donors to Obama, Barney Frank, and Chris Dodd.
Actually, if you look into most CEO’s and Heads of Wall Street, they are PROGRESSIVES.
From Jamie Dimon of Chase to Lloyd Blankfein of Goldman, to
Brian Moynihan of Bank of America to a host of others, they are sympathetic to Obama’s SOCIAL AGENDA.
These are also corporations that Obama WILL RESCUE if and when they make stupid mistakes that lost billions.
It should come as no surprise that their donations are mostly given to the Democratic Party (of course people still subscribe to the myth that the Republicans are the party of the rich ).
Ditto their unemployment calculations. (These people no longer draw unemployment, so they're no longer part of the workforce. Now that the total workforce is lowered, the unemployment rate is lower.)
DEPRESSION... has been and will continue to be.
LLS
Was Geither a Goldman-Sachs employee? I don’t think so. That was Bush’s Treasury Secretary: Henry Paulson, and also Clinton’s Treasury Secretary: Robert Rubin - who went on to bankrupt Citibank while collecting another billion in compensation. Geithner was at the NY Fed (where he was supposed to be the primary person overseeing ALL the big banks that failed in NYC) during the Bush years, and was elevated to Treas.Sec. by Obama, but I don’t think he worked at Goldman.
Your point still stands, obviously, it is merely a small correction I am making here. Goldman has sent out their minions to rape and pillage the world financial systems, and continually bankrolls evil leftists, and even places it’s former employees into leftist regimes (and some NeoCon center-right ones like Bush2) around the world.
They are a plague of parasites.
I must have got it from references to this story -
http://www.usatoday.com/news/washington/2009-01-27-lobbyist_N.htm
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