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

Discussion in 'Economics' started by ASusilovic, Oct 6, 2010.

  1. the1

    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.

     
    #11     Oct 6, 2010
  2. Unfortunately it is not that simple. The problems you see today is a result of over 25 years worth of policy and mismanagement.
     
    #12     Oct 6, 2010
  3. the1

    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.

     
    #13     Oct 6, 2010
  4. 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....
     
    #14     Oct 6, 2010
  5. S2007S

    S2007S



    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.
     
    #15     Oct 6, 2010
  6. MKTrader

    MKTrader

    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.
     
    #16     Oct 6, 2010
  7. Bakinec

    Bakinec

    Isn't it the other way around? Stocks lead economy.
     
    #17     Oct 6, 2010
  8. MKTrader

    MKTrader

    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.
     
    #18     Oct 6, 2010
  9. 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..
     
    #19     Oct 6, 2010
  10. 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!:cool:
     
    #20     Oct 6, 2010