Does Goldman Sachs ever think about the major role they played in originally bringing about the recession that we have been enjoying since 2008; about the borrowing of huge amounts of money to prevent insolvency; about their role in removing wealth from all other sectors of the economy into their own coffers; about their being able to successfully compartmentalize their actions and ethics so effectively?
Insight: Debt relief replaced with recession fear
By Neil Fullick - Reuters
Former Treasury Secretary Lawrence Summers said in a Reuters column there is a one in three chance of a U.S. recession. According to number crunching by Goldman Sachs, history suggests the economy is perilously close to tipping over the edge.
Signs are little better elsewhere. Italy and Spain are edging closer to the euro area debt danger zone, China's economy is slowing and Japan is mired in recession after the March earthquake.
The gloom is hitting the corporate world as analysts cut earnings forecasts globally, especially in export-led economies, and big banks have announced tens of thousands of job cuts.
"The odds of the economy going back into recession are at least one in three if nothing new is done to raise demand and spur growth," Summers said of the United States in his column.
"If these judgments are close to correct, relief will soon give way to alarm about the United States's economic and fiscal future."
The alarm bells may already be ringing. Most worryingly for financial markets, the U.S. administration's commitment to fiscal spending cuts could make any U.S. downturn worse.
Read the entire article here