Goldman Says Japan Recession Risk at `Danger Level'

Discussion in 'Wall St. News' started by ASusilovic, Jan 10, 2008.

  1. Goldman Sachs Group cut its economic growth estimate for Japan and said there's a 50 percent chance of a recession in the world's second-largest economy.

    ``We estimate the probability of a recession in Japan has risen to the `danger level,''' Tetsufumi Yamakawa, chief Japan economist at Goldman, said in a report to clients today. ``We project weaker-than-expected growth in Japan.''

    The nation's economy will continue to slow ``for the time being,'' Bank of Japan Deputy Governor Toshiro Muto said today. A housing slump in the U.S., which Goldman yesterday said may already be in recession, could prompt overseas investors to sell real estate holdings in Japan, Credit Suisse Group said today.

    Yamakawa cut his 2008 growth estimate to 1 percent from 1.2 percent and said the central bank may have to forego raising rates this year, citing slower demand from emerging markets.

    Sluggish spending by consumers has left Japan more dependant on overseas markets, just as cooling U.S. demand threatens to spread to Asia, where Japan sells half its exports.

    Stocks including Mitsubishi Estate Co. declined today after Credit Suisse said the defaults in U.S. subprime mortgages may prompt overseas investors to sell their property holdings in Japan. Japan's leading index, a gauge of growth in the next three to six months, stalled in November, a report today showed.

    Yesterday the call for U.S. recession, now "the danger" of recession in Japan ! Goldman´s PR division must be working on V 12 Mercedes cylinders....
  2. lmao

    No doubt.

    Goldman Sachs - depressing share prices so they can snatch up some bargains before pumping the market conditions again.

    They'll bring out Abby Joseph Cohen when we reach a 20% correction to state how she sees "real value out there,' but not before GS has accumulated large positions in its favorite longs again.
  3. ?........the TOPIX is going back to 1600?

  4. Goldman is so obvious in their intentions. When ever they want to dump the market so they can get in, they come out with these negative calls on the economy/market. Whenever they want to dump their holdings, they come out with positive calls. Classic Goldman.
  5. Nazz,

    I´m still long TOPIX on your suggestion ! :)
  6. we will see the Oil at 105 soon..
    Buy some call's.
  7. LOL What a crock, Recession in Japan.
  8. I wish I could pimp my book on tv, internet, and magazines like Goldman does.

    It would be nice to talk the gbp/jpy down to 190.00 to buy it up to 230..
  9. In the words of Dave Chappelle, "She sux ass!". Here track record of calls is not what many think they are. She is such an over-hyped analyst.
  10. Hey, Goldman predicted $100 oil 4 years ago, so maybe there is a several year lead time on their recession predictions as well
    #10     Jan 10, 2008