Prospects for US economy either 'fairly bad' or 'very bad', warns Goldman Sachs

[CHIMO]

Gloomy predictions for the US economy hardened today when Wall Street bank Goldman Sachs said the economy was likely to be "fairly bad" or "very bad" over the next six to nine months.

Jan Hatzius, chief US economist at the bank, described two scenarios in a letter to investors: "a fairly bad one in which the economy grows at a 1.5% to 2% rate through the middle of next year and the unemployment rate rises moderately to 10%, and a very bad one in which the economy returns to an outright recession."

Hatzius's view gives more weight to calls from regional Federal Reserve chiefs in New York, Boston and Chicago last week for the Fed to introduce new stimulus measures at its next meeting on 2 November.

Today, a private sector payroll report indicated that the US has begun shedding jobs after several months of growth. The figures come days ahead of the monthly department of labour report that is expected to show US unemployment rose to 9.7% in September.
http://www.guardian.co.uk/business/2010/oct/06/goldman-sachs-fairly-bad-very-bad

[bbinacan]

1. I'd bet very bad. n/t

[dixiegrrrrl]

2. RETURNS to a recession??????

Still pretending the old double dip game, I see.

I see our President was correct...there will NOT be a double dip, because we never go out of the first dip.
Not if you look at the real numbers.

[The Northerner]

3. +1

[Possumpoint]

4. Can't Be A Double Dip

NBER has ruled that out. Any future problems, in their opinion, will be a new Recession. Since they're considered the authority, so be it.

[HawkerHurricane]

5. It's so bad...

that next time it tanks, the Government won't be able to bail out Goldman Sachs again!