Goldman Sachs Drops A Bomb On Team Obama: Lowers GDP Growth To A Scant 2% To 2.5%, Ups Unemployment Rate Forecast To 9.25%…
And Goldman Sachs is intertwined with the Obama administration like no other company, in ways GE can only dream about. They wouldn’t release a report predicting this much gloom and doom unless they were certain of it.
(Reuters) — After looking at today’s anemic unemployment report, 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.
2. Even our new forecast is subject to meaningful downside risk. We now see a one-in-three risk of renewed recession, mostly concentrated in the next 6–9 months. There are three specific issues that concern us. First, a worsening of the European financial crisis, and a failure of European policymakers to respond adequately, could lead to a further tightening of financial conditions and credit availability, which would worsen the economic outlook globally. Second, our forecast assumes that the payroll tax cut — currently scheduled to expire at the end of 2011 — is extended for another year, but if that failed to happen the fiscal drag in early 2012 would increase significantly. Third, increases in the US unemployment rate have historically had a tendency to feed on themselves, and this could happen again.
HT: CapnAngus
Posted by ZIP on Friday, August 5, 2011, at 2:39 pm | 
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Or unless they’re spinning this positively, and they want to lock these numbers into the minds of the public, before the really scary numbers arrive.
J Beck
Great point! Didn’t even think of that.
They aren’t factoring in the long term unemployed …
conveniently… the commies leave them out
we are in double digits… in just unemployment…
factor in underemployment… and we are in the low 20% range…
Maybe Goldman Sachs is looking at the public mood and has decided now is a good time to get out from under Obama’s thumb. Obama and Acorn used the Community Reinvestment Act to shake down Wall Street. That’s why they backed him in the first place. They got so far in the hole with sub prime loans they had to stay with him. In fact, they had to engineer a stock market crash because he was behind McCain with the 2008 presidential election a scant six weeks out. Could be.
@ J Beck
The way this administration sneaks in its economic revisions, I should think you might be right. Looking around it’s hard to believe the numbers could possibly be as good as they claim.
Look for this potential revision to get dropped sometime around the Christmas to New Year Break.
Oh GS! always late to the party…. 2% is optimistic.
http://www.zerohedge.com/news/goldman-revises-all-fx-pair-forecasts-emphasis-usdjpy-and-usdchf-complete-list-inside
“Not surprisingly, following the earlier downgrade of the US economy by Jan Hatzius, the firm’s FX team has just released its complete list of updated FX projections based on the premise of a slowing economy, i.e., RIP Reverse Decoupling, or the key trope that drive the global economy in H1. As Thomas Stolper says, “The gist of our forecasts implies that the US will experience the largest amount of a slowdown relative to the rest of the world.“
China says debt financing unlikely ‘to save’ US, EU
http://www.france24.com/en/20110805-china-says-debt-financing-unlikely-save-us-eu
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*Note – The amount of money necessary to fulfull the promises of socialist assholes in the EU and US, doesn’t exist. China CANT save the US and EU.
.
This is right on schedule with hussein osama-obama’s plan for us.
Destroy the economy, declare martial law, and transition us to a Communist Dictatorship, and then comes
The [Communist] Dictatorship of the New World Order
Bartholomew Roberts
Atlas is shrugging.
China to U.S.: no more money…… U.S Federal Government: Huh…. What now
China CANT save the US and EU.
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China has been cooking their books as well…
the Chinese may not be able to save themselves
We have shared a number of articles about China’s “miracle economy” and why everything might not be as it seems, and now Business Spectator is asking some tough questions too…
Seriously, how can we trust the statistics that are produced by the Chinese Government? After all, they’re hardly a shining beacon for freedom of information and transparency.
Is their economic growth actually as strong as they say it is? Is inflation really as low as they claim? If things that are harder to fudge, like freight volumes and energy consumption, are telling a different story, could it be that some Chinese officials are getting a tad creative with their numbers?
http://www.businessspectator.com.au/bs.nsf/Article/Making-up-Chinas-growth-pd20110204-DQSFT