Goldman, BofA Merrill warn U.S. economy is losing momentum

[bemildred]

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Goldman Sachs economists have been expecting gross domestic product to rise at a real (after-inflation) annualized rate of 3.5% in the first quarter, which would be the fastest pace since the 3.7% growth of the first quarter of 2010.

But on Monday, Goldman warned of “significant downside risk” to its estimate. The reason: Consumers’ real pace of spending has slowed this year.

The government said Monday that personal spending rose 0.7% in February, but that after adjusting for inflation (think: energy and food) the increase was just 0.3%, after a flat reading in January.

Those figures, in turn, imply that real consumer spending for the quarter as a whole will rise at an anemic annualized pace of 1.75% to 2%, Goldman said. That would be a sharp slowdown from the 4% real spending increase of the fourth quarter, when Americans’ mood was brightening.

http://latimesblogs.latimes.com/money_co/2011/03/economy-slowing-gdp-first-quarter-growth-goldman-bofa-merrill.html

[Uben]

1. Goldman Sachs?

Why aren't these fucking pieces of shit in prison? Whatever they say, do the opposite. They lie, cheat and steal anything they can. I'd spit in their fucking faces if I met one of them. Goddamn that scum!

[xchrom]

2. same with BoA and merril -- they're all crooks. nt

[bemildred]

3. I was mostly taken with the totally fictional character of their "analysis".

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x86710

[xchrom]

5. +1

[DenverDad]

6. Agreed!

They're quite the credible group.

:sarcasm:

[ananda]

4. Did they also say, we're sorry?

And that we'll be glad to pay higher taxes?

[phantom power]

7. yeah, well sustained 10% unemployment will do that

[global1]

8. Well That's What Happens When Greed Sets In And The Price Of Everything Goes Up......

and wages stay even or go down. And don't forget about all those people that are unemployed because their jobs were shipped overseas. When you don't have money to spend on anything but to keep yourself afloat - guess what - people don't spend money. Gas, food, rent and mortage are about all you can sustain and even that is tough.

No extra money for purchasing anything - no purchasing of houses, cars, appliances, clothes, etc. No money for entertainment - no restaurants, vacations, movies.

Then what happens? No taxes collected. No sales tax. No property tax. No federal, state, county or city taxes collected. Social security funds suffer - because not being replenished while people are still aging - and yes us baby boomers.

Then what happens? Services and social programs start to suffer because no money to keep them up.

Then more layoffs, more firings and more jobs made redundant.

And the spiral continues.

Down

Down

Down

What's the answer? Put people back to work. Raise their salaries. Let them feel good about themselves again. Once they feel good about themselves and know that they can earn a fair days wage for a fair days work - they'll begin spending again and then maybe we can turn this thing around and go back .......
.......................... UP

..................... UP

................ UP

[Festivito]

9. Rs killed the economy, Ds turned it around, Rs came back, and?...

Now it stinks again. Surprise, surprise!

[Donnachaidh]

10. GS sniffing around for yet more money from taxpayers?

Setting us up for another bailout?