Free Markets, Free People

Gloomy Goldman-Sachs

James Pethokoukis writes, "Goldman Sachs drops this H-bomb on the Obama campaign:

We have lowered our forecast for US real GDP growth further and now expect real GDP to grow just 2%-2½% through the end of 2012.  Our forecast for annual average GDP growth has fallen to 1.7% in 2011 (from 1.8%) and to 2.1% in 2012 (from 3.0%).  Since this pace is slightly below the US economy’s potential, we now expect the unemployment rate to be at 9¼% by the end of 2012, slightly above the current level.

Even our new forecast is subject to meaningful downside risk.

So, we got that goin’ for us.

Dale Franks
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5 Responses to Gloomy Goldman-Sachs

  • Obama promises ‘things will get better’ on economy

    Excuse me, but when can I stop laughing at this fool ?

  • On his last day at the White House, Austan Goolsbee, chairman of President Obama’s Council of Economic Advisers, said he is not satisfied with the employment numbers in the U.S.
    Goolsbee is leaving the administration to return to the University of Chicago.

    Goolsbee said the debt-ceiling debate was “quite unsettling” and “deeply damaging.” He called for a renewed focus on job growth. He told Bloomberg TV today’s jobs report was encouraging, but said “we’ve got a long way to go.”

    … but why couldn’t he get his boss to go too ?

  • Where’s Scott Erb to tell us that the 3.8% growth rate from several quarters back is sustainable?  I guess it’s easier to sustain it at 1.7%.

  • This is definitely gloomy …

    A government official tells ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value.
    Officials reasons given will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited.
    The official was unsure if the bond rating would be AA+ or AA.