Jan 09 2008
Goldman Sachs: Recession in 2008
Economists from investment bank Goldman Sachs say the housing slump and recent credit market turmoil will spill over into the broader economy this year and push the economy into recession if it isn’t there already.
“The latest data suggest that recession has now arrived, or will shortly,” said Goldman economists Jan Hatzius, Ed McKelvy, Andrew Tilton, and Seamus Smyth said. “The unemployment rate has now risen by more that 1/3 percentage point from the cycle trough. Historically, this has invariably been associated with recession, typically starting immediately and almost always within three months.”
Their prediction is that the Fed will cut rates to 2.50 percent from its current 4.25 percent. More at Forbes.com and Businessweek.
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