Goldman Says U.S. Economy Will Be ‘Fairly Bad’ or ‘Very Bad’

[the1]

You haven't been in the business long then. When Goldman says something like this they are trying to encourage traders to sell so they can buy. Remember their "super spike to $200" on oil call? They publish this crap so they can sell their position to the guys who think Goldman actually has a clue. They don't. They operate to serve their own interests, which is to take money from other market participants in illegal or potentially illegal ways.

Translation to their comments: The economy will slow down a bit but Fairly Bad or Very Bad ain't gonna happen. Fading Goldmans public announcements is generally a spectacular strategy.

Quote from konviction:

The boys at Goldman are some of the brightest in the business, so hearing this from them, makes me feel pretty crappy to say the least.

 

[KINGOFSHORTS]

Quote from Scataphagos:

America needs to (1) TAKE A HUGE DUMP... to rid us of Obama and his ilk, and (2) find the next Calvin Coolidge!

Unfortunately it is not that simple. The problems you see today is a result of over 25 years worth of policy and mismanagement.

 

[the1]

Bingo! I know a guy who is an Engineer for a company that provides parts to Honda and Toyota and his company laid off a boat load of people and now this guy is working about 70 hours per week. They don't want to hire anyone because all they hear is negative news. Instead, companies are squeezing as much work out of the employees they have.

Quote from watchdaride:

have an auto business and i laid off a worker at the end of august when it usuallty slows down a bit. With all the doom and gloom in the media i assumed business would be as bad as last year. But i wish i didnt lay him off because we are still busy ,Sales is up 20% from last sept . Business people dont want to hire because the media is so negative . Ask most small business they are working there staff to the bones because of understaffing . At least here in Orlando its like that.

 

[Scataphagos]

Quote from the1:

"... They don't want to hire anyone... companies are squeezing as much work out of the employees they have.

This economic period has demonstrated to companies that they can do as much or nearly as much business with their work force reduced 50% or so.

Along with the new regulatory burden and healthcare expense/uncertainty, companies are resisting hiring.

Unfortunately, this is a bad development for the unemployed....

 

[S2007S]

Quote from Scataphagos:

This economic period has demonstrated to companies that they can do as much or nearly as much business with their work force reduced 50% or so.

Along with the new regulatory burden and healthcare expense/uncertainty, companies are resisting hiring.

Unfortunately, this is a bad development for the unemployed....

Exactly, these companies have cut so much from their bottom line and are now learning to deal with less employees that when the good times finally come back instead of hiring the 50 people they let go over 2 years they will only hire back 15 people to do that same job, multiply that by millions of small businesses and jobs will never be as plentiful as they were in 2007.

 

[MKTrader]

Quote from KINGOFSHORTS:

GS has a large short, so what they are doing is bluffing.

The question is, how long can GS continue to hold short before they have to unwind and realize big losses.

They aren't bluffing about the economy.

The stock market and economy should never be confused, but sooner or later economic reality will hit stocks. We aren't there yet, though. The divergence between fairy tale land (stocks) and reality (economy) is the largest it's been since fall 2007.

 

[Bakinec]

Quote from MKTrader:



The stock market and economy should never be confused, but sooner or later economic reality will hit stocks.

Isn't it the other way around? Stocks lead economy.

 

[MKTrader]

Quote from Gubinec:

Isn't it the other way around? Stocks lead economy.

And which way did they lead in March 2000, Oct. 2007, Sept. 1929, etc.?

Over the long-term, stocks have been a mildly helpful leading indicator for the economy. But there have been and always will be plenty of exceptions.

 

[EMRGLOBAL]

Unemployment numbers look to be worse.

Euroland earnings start next week I believe.....will be interesting.

Ireland Downgraded...but we knew that was gona happen.

The "Gridlock" rally, in the DOW is slowing as we get closer to the Elections. Market has priced in a REP win of the House.

After NOV3, I agree with GS. 6 to 12 months of more deep pain.

Nothing new, smart money has position'd themselves..

 

[nutmeg]

Quote from MKTrader:



The divergence between fairy tale land (stocks) and reality (economy) is the largest it's been since fall 2007.

Hmnnn.. GS - dire prediction for economy, Buffett was in the news the other day, "stocks are cheap".

In other news. spending is up and savings are up, we did this with our unemployment check. Boyahh!