From Zero Hedge:
…From a just released report by recent addition to the Goldman economics team (supposedly Jan was too busy elsewhere) Zach Pandl: “In light of the downshift in the data this week, we are cutting our second-half growth forecasts further. We now expect GDP growth of 1.0% in Q3 and 1.5% in Q4, both down from 2.0% previously. These changes reduce our forecasts for full-year 2011 GDP growth to 1.5% from…
This is very closing the barn door after the horse escaped – people who weren’t Ruling Class/Bankster cheerleaders made this sort of prediction months ago and some weeks ago moved towards figuring we’re already in a recession. Goldman is just backing and filing and hoping that no one remembers that once upon a time they predicted strong growth in 2011.
The bottom line, though, is that the economy is clearly in a downward spiral. Those still trying to keep faith in Hope and Change are saying that the recent stock market drop is based on “fear”, implying that rational people know that things aren’t so bad. But, they are – it is fear moving the market down…fear of being the last fool out of the market.
We can expect, I believe, some gyrations in the market over the next couple months…maybe even as much as 10% swings either direction. But the writing is on the wall: Obamunist Keynesianism has failed, just as predicted. All that is left to do is beat Obama next year, and then pick up the economic pieces in 2013.